- Proportionality in Tax Increases:
- The Constitutional Court ruled that an automatic 10% tax increase is not proportionate for taxpayers acting in good faith, especially for first-time incorrect declarations (Case No. 8057, 21 November 2024).
- Confirmation by Finance Minister:
- Finance Minister Vincent Van Peteghem confirmed that the tax authorities would no longer impose automatic tax increases or fines on first-time errors made in good faith, responding to a parliamentary query.
- Advocacy for Fairer Sanctions:
- The change in policy follows criticism from professional organizations like Unizo, UCM, and ITAA, which have long advocated for a fairer sanctions policy. The Court of Auditors’ 2022 audit highlighted the frequent application of tax increases for undeclared amounts above €2,500.
- Simplifying the Tax System:
- Minister Van Peteghem acknowledged the complexity of the Belgian tax system as a source of many errors and announced a new version of Tax-on-web for the next year to better assist taxpayers.
- Future Reforms and Code of Conduct:
- Plans are underway to develop a code of conduct for fiscal audits emphasizing transparency and proportionality. Broader fiscal reforms are also being considered to simplify the tax system and reduce administrative burdens.
This judgment and the subsequent policy changes aim to establish a more balanced and proportional approach to taxation, enhancing trust between taxpayers and the tax authorities.
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