Belgium clarifies tax amnesty procedures

A new fiscal amnesty regime came into force in Belgium on Monday, writes Tax News’ Ulrika Lomas. The Belgian finance ministry has provided clarification regarding application of the old and new tax regimes, and the admissibility of amnesty declarations. Taxpayers who submitted a declaration before this date will benefit from the more lenient provisions provided for under the old system. Until July 14, taxpayers were required to pay the standard rate of tax plus a fine of 10%; for declarations received on or after July 15, until December 31, 2013, the standard rate of tax plus an increased fine of 15% will be imposed. The tax amnesty will not be extended in 2014.

In cases where taxpayers elect to correct information on income from bank accounts that have already been clearly identified, the declaration will be considered retroactive rather than a new declaration. In contrast, taxpayers electing to report hitherto undeclared income from one or more undisclosed bank accounts will only be able to regularise their tax situation under the new regime between July 15, 2013, and December 31, 2013. The new regularisation procedure is available to both individuals and corporations, including the self-employed, as well as to common law companies and foundations. The new bill expands the scope of the provisions to include unpaid social contributions, as well as serious and organized tax fraud.

The measures contained in the bill provide for a fine of 15% to be imposed on taxpayers for minor tax offences, and for a fine of 20% to be levied in the case of more major tax offences. For evaded social contributions, a fine of 15% will apply. Finally, the text enables taxpayers with evaded capital outside of the statute of limitations period to regularise their situation, although the fine is increased to 35%.