You missed it, the reason the older was was arrested was because he was not cooperating with the police investigation. What it exactly means in this context is not completely clear though. But I can imagine the police went to have a look, and the man freaked out.

This is uncommon in the Netherlands, I know there are communities in the US with small communities that don't want anything to do with the government. Those people don't even have birth certificates or social security number. But I've never heard anything like that in the Netherlands.