Flemish government announces tax amnesty

The Flemish government has announced a tax amnesty for tax dodgers. The measure will apply for 4 years, until 31 December 2020, and is expected to generate 100 million extra in revenues. Tax dodgers will only have a one-off chance to come out with undeclared income.

After the federal government, it was its Flemish counterpart announcing a regularisation round for so-called black cash, money that has remained undeclared to the taxman. The measure will only apply when taxes have been dodged for purely Flemish issues. In practice, it will mostly be about inheritance money and real estate taxes.

Tax dodgers will only have one chance, and a time limit will apply until the end of 2020. Those coming clean with the taxman, will have to pay a rate that depends on how long ago they evaded taxes, and to whom the inheritance applied. Rates can go from 20 to 37 percent, or even 70 percent when the offence was relatively recent, and the inheritance was not going in a straight line (from parents to children, for example).

The Flemish Finance Minister Bart Tommelein (Flemish liberal) hopes the incentive will convince a number of people in order to generate 100 million extra. He says he wants to use the money to make the present inheritance tax more just and fair.