Van Rompuy wants special code to identify earnings from “Cayman Tax”

Van Rompuy wants special code to identify earnings from “Cayman Tax”

The president of the Chamber’s Finance Commission, Eric Van Rompuy, says he plans to submit a draft law in parliament to create a special code for the so-called "Cayman Tax" so that the fiscal benefit of the tax can be clearly defined. This tax targets “off-shore” constructions by taxpayers trying to evade taxes. Its fiscal benefit is, however, impossible to determine because it is integrated into withholding-tax earnings.

Last week, the opposition denounced the fiscal benefit of the tax as derisory – amounting to five million euros whereas it should earn the State 500 million euros. However, according to Finance Minister Johan Van Overtveldt, there is no reason to fear a budgetary slippage. The money did not disappear but entered the regular economy by way of individual and corporate taxes.

“I shall submit a draft law during the budget control sessions to introduce a separate code on the tax return and put an end to the unending discussion on the earnings from the tax,” Van Rompuy stressed. “The earnings are estimated, all the same, at 500 million, but it is not possible to check whether that amount was really attained,” added the Christian Democratic and Flemish (CD&V) parliamentarian.

The head of the Socialist Party (PS) group, Ahmed Laaouej, had already made a proposal to that effect within the framework of the recommendations of the Panama Papers Commission, but the majority had rejected it.

“I regret that the CD&V did not vote in favour of it at the time, but today I welcome Mr. Van Rompuy’s initiative and I shall support it,” Laaouej said on Monday.

The Brussels Times

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