Are you an EUSSR Slave?

"Mainly" for European residents (CRS) who have not acted yet: Time to work on your 2nd permanent residency (Passport)!

Last year, when we told relations that all their bank account numbers were known to the tax authorities, a more than surprised look, sometimes even one full of disbelief, usually appeared on their faces.

As of today, however, our announcement is completely outdated because by January 31, 2022, at the latest, all Belgian, Dutch, Swiss,... banks had to communicate to the Central Contact Point of the National Bank (CRS) how much is in your bank accounts, what amounts you have borrowed from them and how many pennies you have accumulated through life insurance policies or investments.

So yes, from 31.01.2022, the tax authorities have complete visibility of the account balances of all your accounts.  But those who thought their life insurance policies or their equity accounts would go through the cracks are in for a sour treat. The tax authorities (see below) now also have access to these via the so-called CAP or Central Contact Point of the National Bank (CRS).

This means that, for example, undeclared work and forgetting to declare income in the event of death will be much easier to detect.

But let's be clear, the invasion of your financial privacy is much greater than you might expect at first glance. Perhaps clarify with a simple example of an average wage earner:

Balance of bank accounts 01.01.2022 250,000 €.
Balance of bank accounts 31.12.2022 265,000 €.

Through the personal tax return, tax authorities have a relatively good insight into the income of the wage earner in question, but also on several expenses.

Income 2022 (after deduction of payroll withholding tax) €30,000
Expenses (Gift, maintenance money, ...) € 5,000.

Oops, the taxman thus sees that the wage earner involved had 20,000 € living expenses in 2022.  By 'coincidence,' the tax authorities see through the database of traffic tax that the employee in question bought a used car in 2022. Short bill to the employee about the vehicle's purchase price (e.g., 12,000 €), and the tax authorities can ask how the employee could live on 8,000 euros!

Just imagine having such an employee as an employer and being active in, e.g., the construction industry. Very quickly, the mere idea could arise that this wage earner earns extra on the black market with you, while the truth is that this man or woman does additional work on the black market every Saturday.

Or how this new step considerably expands the tax authorities' arsenal of means of control!  And an important detail, all this can be done relatively automatically, and by using artificial intelligence, fewer officials can do much more targeted investigations.

And yes, sorry, whoever thought to escape via foreign accounts is out of luck.  Indeed, legally you are required to declare your foreign bank accounts and life insurance policies to the CAP. [note there is still an escape route]

Experience shows that if you don't make the declaration yourself, you will almost inevitably get caught because of the recent enormous exchange of information (CRS) regarding bank data between Belgium/Netherlands and a vast number of other countries to the farthest corners of the world. (We have a list of those countries)

I also expect problems from those who have invested heavily in crypto-currencies.  First, the platforms over which those purchases are made are increasingly under pressure to pass on their information to the CAP. It becomes easier if the tax authorities see too significant differences in bank accounts and see a reason to start asking questions. Remember that the statute of limitations in such cases can be as long as seven years.

And if you thought this was the worst of it, know that the following agencies or individuals also have access to what we consider confidential information:

1. Police departments
2. Justice of the Peace
3. Corporate court judges
4. Notaries
5. Bailiffs

If you have any doubts about the above, we can always help you by asking for your file at the CAP out of curiosity.

A 2nd permanent residency/Passport will, under certain conditions, solve this problem.  But...a 2nd permanent residency is getting more and more expensive and harder to obtain.  Better act NOW!!! (especially if you are pensioned). It is still not too late! Contact us as soon as possible: This email address is being protected from spambots. You need JavaScript enabled to view it..  So we can contact you as quickly as possible for a detailed personal interview. Note we only will contact you if you provide us with complete information: name, profession, address, phone number, email, a.o.

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