The enforcement of legal standards to safeguard privacy, which are also laid down in international agreements, implies, however, that any restrictions on individual privacy must be kept to an absolute minimum. This must be a priority in the organization of the fiscal system and the method of levying taxes. Enforcement of tax legislation must go hand in hand with the observance of those regulations which safeguard the individual's legal rights.
The tax authorities' monitoring powers, combined with current legal obligations to provide information, allow for almost unlimited automated data collection in the context of third-party investigations, all the more so as it is now possible to gather data by the simple automatic consultation of administrative records.
National and international legal privacy standards demand that the tax authorities' powers to gather information should be restricted and additional safeguards put in place to prevent unlawful infringement of personal privacy. Such safeguards must include clarification of the extent of the tax authorities' powers as well as additional measures to promote a balanced use of those powers under various circumstances. It is therefore essential to have a system of regulations which provides for greater protection of personal privacy when third-party investigations are carried out for data-gathering purposes.
Citation
Zeeuw, mr. J. de, Informatiegaring door de fiscus. Privacybescherming bij derdenonderzoeken [Gathering of information by tax authorities. Privacy protection in third-party investigations] Dutch DPA, February 1998. Background studies & Investigations 8