550 million Euro “black money” declared

Last year almost 550 million Euro of so-called “black money”, cash that had remained undeclared, was declared to the Taxation Service. The operation earned the treasury an extra 150 million Euro in income from taxation and fines.

A system that allows Belgians and those resident in Belgium to declare any “black money” they have on accounts at home or abroad has been in existence since 2006.

Over the past 5 years, the system has led to 1.6 billion Euro being declared. Most of the money is on accounts outside Belgium and was put there to evade the tax that is levied on interest exceeding 1,830 Euro.

Anyone declaring “black money” pays a fine to compensate for the amount of taxation that had not been paid as a result of the money remaining undeclared.

The fact that the rule of bank confidentiality was scrapped last year has no doubt spurred more people on to declare their “black money”. The Taxation Office can now ask banks to look at the accounts of those suspected of evading tax.

In 2010 a record amount of black money was declared after the Taxation Service received information about Belgians’ Swiss bank accounts.