Tax regularisation 2019
Our firm has long been one of the market leaders in assisting with tax regularisation files. Although the topic no longer receives as much media attention as it did a few years ago, it remains highly relevant, and it is still possible to submit tax regularisation files to the Point of Contact for Regularisations (CPR).
Although the basic premise has remained the same (pressure from the banking sector and the tax authorities prompting savers to belatedly declare and ‘clear’ capital and the income on this capital, which are usually hidden abroad), the key parameters for carrying out a regularisation have changed significantly.
A first observation is that the simple files (e.g. a private individual with a savings account in their name in Luxembourg) have generally already been rectified. The remaining files are often more complex and/or exotic than before, which increases the technicality and sometimes makes it harder to trace evidence.
A second observation is that the international exchange of data is now truly under way. The Common Reporting Standards (CRS) ensure that the Belgian tax authorities automatically receive data on Belgian nationals who still possess foreign capital. It is expected that the tax authorities will take increasing action in the coming years against taxpayers reported via the CRS.
A third observation is that savers who decided to place their capital in a foreign company or structure often currently still escape the automatic exchange of data, but on the other hand, they do sense that they too are coming under pressure. The European obligation to set up a so-called UBO register – including in Belgium – (which obliges the ultimate beneficial owners (UBO) of a company to declare their interests) is a precursor to what will likely lead to greater transparency worldwide, even within corporate structures, in the (short?) term.
A fourth observation is that regularisation has never become cheaper; quite the contrary. At the time of the One-off Liberating Declaration (EBA) in 2004, the taxpayer had the option to regularise at 6 or 9% of their hidden capital. Today, the rate for prescribed capital is 39% and next year it will be 40%. For non-prescribed income, the bill is usually even higher (e.g. 25% withholding tax plus a 24% surcharge, totalling 49%).
The conclusion for those in doubt is therefore clear: do not put off until tomorrow what you can still do today. In our practice, we too often see clients who have hesitated for a long time and ultimately have no other choice but to regularise, with the major difference being that the cost is much higher and the practice of the CPR has become stricter.
It is therefore time to bring this back into the spotlight.
Lexalert seminar
On 28 June 2019, Everest partner Stijn De Meulenaer will speak at a seminar entitled “tax regularisation 2019: current state of affairs in the tax and criminal fields and at the Flemish and federal levels”.
At this seminar, organised by Lexalert, Mr Stijn De Meulenaer, alongside Mr Steven Vanden Berghe (Chairman of the Ruling Commission, which is also responsible for processing tax regularisations through the Point of Contact for Regularisations or CPR), will provide an interactive insight into the world of tax regularisations.
The following topics will be covered:
- What is regularisation and why do it?
- What are the tax risks of black capital or black income?
- What are the criminal risks of black capital or black income?
- When do these risks become prescribed?
- What is the likelihood of getting caught?
- How does a regularisation file proceed?
- Who can still regularise, and who can no longer do so?
- What must/can still be regularised?
- What do you need to prove to successfully conclude a regularisation file?
- How much does a tax regularisation cost?
The “tax regularisation 2019” seminar will conclude with some more difficult practical case studies, where the speakers will share their insights on the possibility and the manner in which such a file can be regularised.
You can register via the website of the organiser of the “tax regularisation 2019” seminar, Lexalert.
Use our calculation tool to calculate your tax regularisation in 2020.
Might you be interested in advice regarding tax regularisation? Please contact our specialists without obligation via our contact form, by email (anti-fraude@everest-law.be) or by telephone (09/334.94.70).