The Belgian tax authorities have recently announced their new focus areas for upcoming tax audits. The aim is to encourage individuals and companies to fulfil their tax obligations ‘spontaneously’ and in a ‘correct manner’.
Taxpayers may expect questions from the tax authorities or a tax audit may be triggered in relation to their personal income tax return if:
- the taxpayer is an employee who has claimed a deduction of actual professional costs via the Belgian personal income tax return (instead of making use of the standard lump sum professional costs, which are automatically applied by the tax authorities).
- foreign source income (obtained outside Belgium) was not declared in the Belgian personal income tax return
- the taxpayer did not report capital gains realised in case of quick selling of real estate located in Belgium
Furthermore, taxpayers who have failed to submit their tax return (even after having received a reminder to do so from the Belgian tax authorities) will be specifically audited, especially when non-compliance is a recurring issue.
Finally, as in previous years, resident taxpayers who are working in an international employment situation and who requested a tax exemption for foreign income in their tax return, will still have a greater risk of receiving a request for information from the Belgian tax authorities and finding themselves confronted with a tax audit in this respect.
In case you have to deal with a tax audit and you would like to receive our assistance on this matter, please feel free to contact us.
