Tax Authority Not Obligated to Disclose All Algorithm Information

By Netvora Tech News

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A Dutch court has ruled that the Tax Authority (Belastingdienst) is not required to disclose all information about the algorithms it uses. The decision was made in a lawsuit filed by a journalist who had requested information about the use and functioning of algorithms used by the tax authority under the Open Government Act (Wet open overheid). The journalist had submitted a request for information about the algorithms used by the tax authority, including the control techniques, sources, and locations of the sources used to conduct controls. However, the tax authority only provided tens of documents, omitting passages that could reveal sensitive information about the control technique, as well as the sources and locations of the sources used to conduct controls. According to the tax authority, disclosing this information could help malicious individuals minimize the chance of being caught and evade risk detection. Furthermore, the tax authority claimed that some information was made unreadable regarding the sources and servers used by the tax authority, as this is sensitive information that could be used by hackers to quickly find and manipulate data. The journalist argued that the importance of making this information public outweighs the potential risks, citing examples such as the childcare allowance scandal and scandals involving the police and DUO. The journalist pointed out that there has been a growing societal awareness of the importance of transparency in the functioning of algorithms and their applications. During the court proceedings, the tax authority reiterated that disclosing this information could put malicious individuals in the know. However, the court ultimately agreed with the journalist that since the childcare allowance scandal, there has been increased attention to the use of algorithms, but ruled that the tax authority's interest in effective inspection, supervision, and control outweighs the journalist's interest in controlling the information used by the tax authority to choose which declarations to inspect and whether this involves direct or indirect discrimination. The court also took into account that the tax authority has demonstrated its commitment to transparency in the use of algorithms.