Last chance to regularize?

In the past the government gave 'fiscal sinners' the opportunity to clear themselves through the voluntary disclosure procedure. In 2005 a legal possibility for a fiscal regularization was introduced. This system will be modified by the 2013 budget and abolished afterwards.

In fact now there is an extinguish scenario. In two phases (begin until mid 2013 and mid until end 2013) you will get your very last (?) chance to regularize, e.g. repatriating grey or black capital from abroad. The exact timings for these phases are not known yet. Moreover is it not clear if these phases will fade-in...

First phase: begin until mid 2013

In a first phase everyone will have the opportunity to regularize. This is also the case if you have used the system before. According to the current regulation you only had one chance: it was the purpose that who regularized would do this completely (without concealing black or grey capital), without the option for tax payers to do this in separate stages.

If you transferred a 'part' of your grey or black capital from abroad, you can now also transfer the rest. This regularization will cost you: in the first phase a fine of 15%, and after six months even a 20% fine.

This 15% is a fine which is imposed on the tax rate you didn't pay. Imagine that you evaded the taxation on interest (taxable at 15%) and you want to regularize these amounts now, you will pay 30% on that amount, being 15% tax and 15% fine.

The fine is applicable to all kinds of income, so also to non-declared professional income (black salaries and the like).

New is that all legal persons can use this opportunity: also not-for-profit organizations and foundations which didn't qualify earlier.

Second phase: mid until end 2013

Those who would like to regularize in the second phase, pay a higher price. This phase is in fact intended for the heavy tax sinners. In this phase of the regularization, capitals are envisaged for which the origin isn't traceable, which can't be regularized in the first phase for which capital should be traceable.

Also capital deriving from severe tax fraud and criminal offenses like misuse of company assets, money laundering and forgery qualify for regularization in this phase.

There will be a special rate of 35% under which you can transfer grey and black capital to Belgium. This special rate included both a fine and a lump sum taxation. The public prosecutor will besides the taxation of 35% also impose a settlement.

Also social regularization

This is clearly of importance for black professional income. These can be regularized: not only for tax purposes, but also for social security purposes. For this social regularization, no additional fines will be imposed.