Belgian Government’s Tax Amnesty Likely to Be A Flop

by Ulrika Lomas, Tax-News.com, Brussels

06 August 2004

The Belgian government’s ambitious revenue target for the repatriation of offshore investment funds under a current amnesty is unlikely to be achieved, according to the findings of a recent poll.

Under the amnesty scheme, which has been operating since January, individuals are permitted to bring home undeclared assets held overseas so long as they pay a penalty of between 6% and 9% of the assets' value to reflect unpaid back taxes.

However, a survey conducted by Belgian weekly financial publication, Trends, has revealed that almost 60% of the 402 members of the Belgian Institute of Accounts and Tax Consultants polled would advise their clients against repatriating assets under the scheme, citing a lack of clarity in the legislation.

This has been reflected in the amount of tax paid by account holders so far under the plan.

The authorities were hoping to collect €850 million in revenues from the amnesty which runs until the end of the year, but as of the end of June, a relatively paltry €17.5 million had found its way into the government’s coffers.

It's not known how many dentists are among those repatriating assets.

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