Slow take-up for tax dodge law

28 January 2004

BRUSSELS – Very few Belgians have declared illicit foreign bank accounts since the government unveiled a new law designed to crack down on tax dodgers who stash undeclared earnings outside of the country, the country’s leading banks have announced.

The law came into effect 12 days ago. It gave people a year to tell the Belgian tax authorities about any undeclared earnings they may have invested or placed in bank accounts outside of the country.

But Fortis, Belgium’s biggest bank, said no-one has yet approached it regarding foreign cash-stashes. It is the same story at Dexia, while KBC and ING have each only handled three declarations.

People who come clean within the one year amnesty period will be granted immunity from prosecution and will only have to pay a limited tax of 6-9 percent on their foreign nest eggs.

But anyone caught with an illegal overseas cash stash after that time is set to face a major fine.

Subject: Belgian news