Strategizing International Tax Best Practices – by Keith Brockman

Posts tagged ‘Belgium’

Belgian Fairness Tax lesson: Appeal early

The EY Global Alert link highlights the fact that the former Belgian Fairness Tax was determined to violate:

  • Principle of legality
  • Article 4, Parent-Subsidiary Directive
  • Constitutional principles of equality and non-discrimination

Despite these multiple violations of law, the principle of equality was limited to assessments commencing in 2019, with limited exception.

Most importantly, the lesson learned from this not-uncommon example is: Appeal early to preserve your legal rights; as courts may not preserve such rights in their final decision.  

 

http://www.ey.com/Publication/vwLUAssets/Belgian_Constitutional_Court_annuls_Fairness_Tax_-_limits_recovery_of_unduly_paid_tax/$FILE/2018G_01226-181Gbl_Belgian%20Constitutional%20Court%20annuls%20Fairness%20tax.pdf

Belgian’s fairness tax = Unfair

The Court of Justice of the European Union (CJEU) has struck down the controversial “fairness tax” of Belgium, based upon violations of the Parent-Subsidiary Directive and the freedom of establishment.

Taxpayers who have paid this tax should file a claim for refund, and all taxpayers should be aware of any similar “fairness” provision that unfairly discriminates taxpayers based on enacted EU legislation.

EY’s Global Tax Alert provides additional details.

http://www.ey.com/Publication/vwLUAssets/Belgian_fairness_tax_ruled_incompatible_with_EU_law_by_CJEU/$FILE/2017G_03275-171Gbl_Belgian%20fairness%20tax%20ruled%20incompatible%20with%20EU%20law%20by%20CJEU.pdf

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