Black money and the additional assessment period on black money

Anyone caught by the tax authorities in 2023 with dirty money in a foreign account can count on a very high tax fine. The tax authorities’ additional assessment period is 12 years. So 12 years in which the Tax Authorities may impose an additional tax assessment with a fine. The fine for black money can be significant. Tax avoidance is still allowed. More is now known about money in a savings account in Liechtenstein.

Black money in a foreign account

It was not so long ago that people could save black money in a foreign account in relative safety. Many people did that. Although no one knows exactly how much money is involved, it is certain that it involves many billions of euros, which means that the Tax Authorities are missing out on a lot of taxpayer money.

Luxembourg

The Luxembourg case and the penalty for undeclared savers in Luxembourg are on everyone’s minds. A dubious issue, because the Tax Authorities found out about account holders with undeclared money in Luxembourg based on stolen data. Two things stood out:

  • It involved stolen data, which makes it all a bit dubious.
  • The question was raised as to how long the tax authorities may go back in their additional assessment. What is the additional collection period for black money on a foreign account?

Stolen data Luxembourg

In the meantime, the protest against the use of stolen data seems to have run its course. The tax chamber agreed with the tax authorities, as did the Supreme Court shortly afterwards. In the Luxembourg case, large amounts of black money were discovered in this way. Sometimes the tax authorities are helped by outsiders and obtain a CD or other digital information about wealthy families with dirty money in a foreign savings account. The informer can even request a royal reward for this.

What is the additional assessment period for black money?

An additional collection period of five years applies to black money on a domestic account . An additional collection period of twelve years for undeclared money in a foreign account . The latter, 12 years, has been subject to discussion, but has now also been approved under the conditions that the tax authorities hurry up with gathering information and imposing a tax assessment.

Luxembourg, Liechtenstein, Switzerland, Belgium

After Luxembourg, more and more safe tax havens seem to be falling: Liechtenstein, Switzerland, Belgium. That is what Minister Jan Kees de Jager would have us believe. New additions to existing tax agreements are being made. Moreover, fines on black money will be significantly increased. At least if the mutual parliaments agree to this. A referendum on this may also be necessary in Switzerland. The Tax Authorities in Liechtenstein are tracking down a number of Dutch undeclared savers who are involved in 22 funds in Liechtenstein. This information was on the CD-ROM previously purchased by Germany. A Swiss CD-ROM also recently turned up at the French tax authorities.

Tax havens and tax havens

This does not alter the fact that there are still many tax havens in the world. The safest so far seem to be Russia, Dubai and the United Arab Emirates. Moreover, no one yet knows how high the pressure on these countries can be increased, especially in difficult economic times.

Significantly higher fine for black money

A significantly higher fine on black money does have a deterrent effect. Anyone who is caught will pay the taxes plus the fine in twelve years. And if it is not just about undeclared savings, but it can also be proven that the undeclared savings have also been earned undeclared, the costs become very high. In addition to taxes, premiums will still have to be paid. The fine for being caught by the tax authorities is no less than 300 percent. On the other hand, if you have had black money for a long time, every year of delay and not being caught means that you do not still have to pay the then applicable high income tax rate of 60 percent for that year in the past.

Please note: Last chance tax evader with dirty money

You can always voluntarily surrender and if you cooperate with the tax authorities, the fine may be lower than if you do not cooperate. You will also receive an additional assessment.

Lock black money in a foreign account in 2023

Saving money has certainly not become easier, but not impossible. Anyone who has their money in Europe must monitor matters closely, because Switzerland will also cooperate in exchanging data if requested by the Tax Authorities on the basis of suspicions of dirty money. It is not yet clear how exactly, but those who want to save money should take good advice more than ever or simply choose their money’s worth. Fortunately, tax avoidance is allowed .