Utility Tax Relief Program in the Netherlands

摘要

This report addresses Department of Defense (DoD) compliance with host-nation requirements for the utility tax relief program in the Netherlands. A second report will address the utility tax relief program in Germany. The DoD Inspector General has determined that the U.S. Army Installation Management Command's, Europe Region (IMCOM-Europe), internal controls for the utility tax relief program in the Netherlands were ineffective. The Program is voluntary and gives DoD personnel the opportunity to receive tax-free electricity, gas, and water when living in private housing in the Netherlands. The Inspector General identified internal control weaknesses in the implementation and operation of the program. DoD did not guarantee payment of its participants' tax-free utility bills as required by the Netherlands Ministry of Finance to receive tax-exempt utilities. Noncompliance with the host-nation's requirements may negatively impact international relations as well as increase the chance of the Netherlands Government revoking the tax relief privilege. The Inspector General recommends the following: (1) that Regional Director, IMCOM-Europe, develop regulatory guidance that clearly outlines the policies and procedures necessary to operate a utility tax relief program in the Netherlands that is in compliance with host-nation requirements and monitor and assist in implementing the guidance; and (2) that Garrison Commander, U.S. Army Garrison Schinnen, modify the current utility tax relief program to comply with the guidance developed by the Regional Director, IMCOM-Europe. The Regional Director's, IMCOM-Europe, and the Garrison Commander's, U.S. Army Garrison Schinnen, comments were responsive to the Inspector General's recommendations. Management is taking action to bring the utility tax relief program in the Netherlands into compliance with host-nation tax requirements. Proposed actions were sufficient for all recommendations. Therefore, no additional comments are required.