Tax authority goes after crèches

20 March 2007

BRUSSELS – The subsidies granted via the Kind & Gezin agency to encourage independent entrepreneurs to open day care centres for children are suddenly now considered private income and taxable. With retroactive effect no less.

Not all crèches were entitled to the subsidies, it comes with strict quality standards attached. “First they reward us for our good work, now we are being punished,” is the sentiment in the sector, which already suffers from a great shortage of quality child care.

There was much commotion at the office of Minister for Welfare Inge Vervotte (CD&V) on Monday. The Kind & Gezin (Child & Family) agency is aware of the problem. Spokesperson for the agency Leen Dubois is also frustrated by the situation.

“The subsidies that are now suddenly subject to federal tax are not really compensation for expenses, but financial support, that is why the federal government can now suddenly levy tax on them,” said Leen Dubois.

“All independent child day care facilities are the victim here. We are working to make this support tax free, we just need the signature from [Finance] Minister Reynders.”

Subject: Belgian news