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The Tax Authorities have reinstated three risk models that were temporarily disabled in 2021 due to non-compliance with GDPR regulations. However, one of the risk models is still awaiting completion of privacy research, according to a government response.
Outgoing State Secretaries Alexandra van Huffelen (Home Affairs) and Marnix van Rij (Finance) wrote in a response to the House of Representatives that a risk assessment was conducted by the Tax Authorities regarding the use of the risk models that were disabled in 2021: 'sales tax carousel fraud,' 'issue of VAT number,' and 'sales tax negative.' This assessment led to the decision to reinstate the models. Van Huffelen and Van Rij stated that any potential risks were deemed 'acceptable.'
Although the 'negative sales tax' model has been put back into operation, a data protection impact assessment is still pending. A GEB is evaluating privacy risks associated with data processing in order to implement measures to mitigate these risks. The timeline for completion of the privacy investigation is unclear. Additionally, the risk models must be included in the algorithm register for transparency purposes.
Investigative journalism platform Follow The Money reported last December that the Tax Authorities may still be infringing the law with the three risk models. Despite the high risk of discrimination, the algorithms were reactivated after a brief pause. The benefits scandal has already highlighted the severe consequences for citizens resulting from discriminatory algorithms, lack of transparency, and careless data processing.
English (US)