On 2 May 2019, Belgium completed the implementation process of the Directive on tax dispute resolution mechanisms in the EU (Council Directive 2017/1852 of 10 October 2017). This enhanced procedure for resolving cross-border direct tax disputes puts taxpayer rights at the forefront, has a broader scope of application as well as an obligation for the
The EU Joint Transfer Pricing Forum (“EU JTPF” or “the Forum”) recently published its report “A coordinated approach to transfer pricing controls within the EU”, which aims to address the lack of guidance on bilateral and multilateral transfer pricing audits. The objective of the report, inspired by a number of successful pilot cases, is to
The Large Enterprises Division of the Belgian tax administration (“LE Division”) announced the launch of a two-year pilot project on cooperative tax compliance (Cooperative Tax Compliance Program – “CTCP”). The program is aimed at transforming the traditional approach of ex-post tax investigations towards a system of proactive, real-time and constructive dialogue on the tax affairs of corporates.
The Belgian Tax Authorities have recently announced some of their focus areas for 2018 for tax audits. This early warning allows both individual taxpayers and enterprises to ensure compliance with their Belgian tax obligations. Individuals and enterprises that have not filed tax returns will in any event be selected. Enterprises can expect to face more
Belgian transfer pricing audits: increased manpower, new focus areas and enhanced cooperation on the horizon
Beginning in February of 2018, the Belgian tax authorities will initiate a new wave of transfer pricing (TP) audits. The central transfer pricing investigation team (TP Unit) is investing in additional manpower and changing investigation approaches to increase the effectiveness of audits. Taxpayers should also expect more scrutiny on TP matters from other tax departments,
On 10 October 2017, the ECOFIN Council formally adopted a Directive on tax dispute resolution mechanisms in the EU. The objective is to establish more effective and efficient procedures within the EU. The Directive builds on the existing Convention 90/436/EEC on the elimination of double taxation in connection with the adjustment of profits of associated