A Dutch court has limited when a BV can correct excessive interest previously booked on a director-shareholder loan. The foutenleer cannot shift an earlier profit error into a later open tax year. Booked interest can therefore increase taxable profit before the BV receives cash.
Why this matters
When interest is added to the debt, the BV records income while its bank balance stays unchanged. It may still owe corporate income tax. That paper income cannot pay payroll, suppliers, or a tax assessment. The foutenleer can correct an incorrect closing balance sheet. It does not generally repair an earlier annual profit calculation through the latest open return. The loan remains a receivable. A box 2 charge for excessive borrowing does not cancel it.
Example
A holding BV has a growing receivable from its director-shareholder. Each year, it adds interest to the balance instead of receiving payment. The accounts show income, but the BV receives no money in its bank account. An adviser later reviews the loan and questions the historic rate. A lower calculation in a spreadsheet does not automatically create a deduction in the current corporate income tax return. The BV must assess the old tax position separately from its current loan terms and cash plan.
XTROVERSO tips
- Match the ledger to the contract. Compare the balance with the signed agreement, repayment schedule, interest terms, and security. Record missing documents and any differences.
- Separate cash from booked interest. Show how much interest the BV received and how much was added to the debt. Use the cash figure for tax, payroll, and supplier planning.
- Document the current rate. Keep a short note on market pricing, term, repayment risk, payment timing, and security. Give each future rate change a commercial reason and effective date.
- Review repayment as a creditor. Check what the shareholder can repay, from which funds, and by what date. Record what the BV will do if payment is late.
- Keep past and present decisions separate. Do not treat a current journal entry as an automatic repair for earlier years. Keep the historic filing question separate from the current loan review.
- Check procedural deadlines. Confirm assessment dates before choosing a correction route. Objections, requests for an ex officio reduction, and the foutenleer have different conditions.
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The data, sourcing, and analysis behind this article were conducted by Linda Pavan. AI was not used to identify sources, build the factual basis, or produce the analytical judgment contained here. AI was used only as a drafting aid. The final English text was personally reviewed, edited, and approved by Linda Pavan before publication.
References
- Taxence — Te hoge rente op dga-lening niet herstelbaar via foutenleer
- Rechtspraak — District Court judgment ECLI:NL:RBNHO:2026:9007
- Hoge Raad — Foutenleer: balance error versus earlier profit error
- Belastingdienst Kennisgroep — Application of the foutenleer
- Wettenbank — Statutory corporate profit framework
- Belastingdienst — Determining a business-like interest rate
- Belastingdienst — Loan terms, repayment, and security
- Belastingdienst — Excessive borrowing and substantial interest
