Tax office makes EUR 800m error

12th September 2006, Comments 0 comments

12 September 2006, BRUSSELS — A calculation error by the Finance Ministry led the federal government to overestimate revenue from income tax this year by EUR 800 million to EUR 1 billion.

12 September 2006

BRUSSELS — A calculation error by the Finance Ministry led the federal government to overestimate revenue from income tax this year by EUR 800 million to EUR 1 billion.

The government will need to close the budgetary hole in coming weeks before it can even start on drawing up the 2007 Budget, newspaper 'Het Laatste Nieuws' reported on Tuesday.

The Finance Ministry has confirmed the error, but said it is confident that only minor budget cuts will need to be made to correct the error.

The ministry blamed the miscalculation on an error by the IT department of the tax office. It said the IT department had been under extreme pressure to meet deadlines.
 
The tax office discovered the incorrect coding quite quickly, but the government had already made an income forecast for 2005 based on the incorrect data.

Finance Minister Didier Reynders has launched an investigation into the incident, but has said it is too early to confirm what the budgetary consequences of the error will be.

[Copyright Expatica News 2006]

Subject: Belgian news

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