Given the recent confirmation that tax authorities are behind of processing tax returns, the trade union representing Luxembourg Inland Revenue employees has elaborated, pinpointing the authority's lack of employees as an issue.
The Steierbuet, otherwise known as the "Syndicat unifié des impôts directs", is the trade union representing employees of Luxembourg Inland Revenue (Administration des contributions directes - ACD). According to the trade union, the tax authority is currently functioning but is overwhelmed with work, with severe delays on processing tax returns.
Whilst Minister of Finance Pierre Gramegna has been increasing the personnel of the ACD since 2013, the 2017 tax reform also saw an increase in the authority's workload, thus unbalancing the amount of employees and the amount of work again.
The trade union's president Christian Faber weighed in on the issue, pointing out that the ministry must anticipate current employees retiring and consequently hire new employees and train them before their predecessors retire. He also warned that of the 43 new hirees planned for this year, only 31 would receive a fixed-term contract.
Regardless, the trade union continues to call for the taxation system to be simplified. As it stands, tax returns have been increased from 16 to 20 pages. Whilst the announced digitization of tax returns for individuals will help (businesses already being able to file tax returns online), the trade union is calling for more details. The syndicate has queried what systems will be used and how the paradigm will be changed.
Tax returns sent in before the deadline of 31 March were processed without delays. However, Faber pointed out, if everyone sent in their return by the deadline, the tax authority would not be able to cope with the workload.