The Cayman tax, which targets the sums that Belgians have placed in tax havens, only brought in €5 million last year – a mere one-hundreth of the €510 million which the Finance Minister, Johan van Overtveldt, had forecast in the 2017 budget. The information appeared in an article in Het Laatste Nieuws on Tuesday.
The Flemish Socialist party, the sp.a, is warning of the situation, based upon FPS Finance figures. In 2016, the Cayman tax yielded some €48 million. The sp.a suggests that the high decrease recorded last year is attributed to “loopholes” within the tax provisions. Until 2017, trusts were able to escape the tax and many people possessing these legal vehicles were able to dismantle them without paying tax. Such a view is held by the deputy, Peter Vanverthoven (sp.a).
Mr Van Overtveldt believes that the figures are not, of themselves, significantly low. He says, “The objective of the Cayman tax was to discourage the setting up of offshore vehicles. To that end, it has succeeded, which implies that there has been a increase in Belgian tax receipts.”