The publication in the State Journal of a bill passed by the Federal Parliament on 18 July makes it possible again for those with undeclared funds to reach a settlement with the Finance Department by exempting them from prosecution for tax evasion. The publication of this and other measures contained in the bill on Tuesday means that it comes into force with immediate effect.
Higher levy for those wishing to declare funds that had hitherto remained undeclared
Published:
For the first time in one and a half years it is now once again possible to reach a settlement with the Finance Department on undeclared funds. Those that decide to do this will pay a 30% levy on top of the tax that has been evaded on provision that it was due than 7 years ago. The levy is 45% for undeclared funds accrued longer than 7 years ago.
Even though there have been 4 so-called “fiscal regularisations” during the past 20 years, experts in fiscal law say that there is a lot of demand from those with undeclared funds to request a settlement with the Finance Department. This is especially true among those that have inherited undeclared funds and which to avoid facing prosecution.
Levy higher this time around
This time around the levy imposed on top of the evaded tax due is 5 percentage points higher that during the last “fiscal regularisation”.
The higher levy is the result of a political compromise struck between the parties that make up the federal government coalition. Initially the Flemish socialist party Vooruit had blocked the measure as it believes that fiscal fraud such be punished more severely.
During the 4 previous “fiscal regularisations” 17 billion euro were declared more than 4 billion euro of which went to the Finance Department.