Black money – laundering black money with the help of the Tax Authorities

Voluntary conversion in 2023? There is a lot of dirty money in circulation through undeclared work and undeclared savings abroad, but beware of the tax penalty you risk. Until recently, the chance of being caught with dirty money was small. This now seems to be changing with the attack on bank secrecy for undeclared savings and undeclared work with the high fines for the employer. Fortunately, if you wish, you can easily launder your money with the help of the Tax Authorities. See how to do that. Those who are caught by the tax authorities often pay much more expensively. But you can also avoid the tax authorities via Dubai and Singapore.

What is black money?

Black money sounds a bit obscure, but quite a few people have black money. In cash or in a foreign account. Hardly anyone objects much if payment is made without a receipt and therefore no VAT has to be paid. Many know a handyman who is cheaper because he is paid undeclared. Or we know someone who visits Luxembourg or Switzerland every holiday to deposit some cash in a bank account. Nothing to worry about, because it happens a lot. The informal economy in the world is therefore considered to be very large. There is talk of earning black money and saving black money.

Germany, Belgium, Luxembourg 2023

Countries such as Germany, Belgium and Luxembourg are no longer the places to be. They exchange tax information with the Dutch tax authorities. Previously, you could always go here easily. In those countries you did pay a withholding tax, but that was usually the end of the matter.

Where is there still banking secrecy?

But there is something wrong with banking secrecy: more and more countries are pursuing savings with dirty money. In the Netherlands, initially under the leadership of State Secretary Jan Kees de Jager, who was promoted to minister after the fall of the Balkenende cabinet. He increasingly gives the concept of black money a criminal connotation. He concludes new tax treaties with countries, which should make black savers shy away. It is also he who wants to increase the fine on black money in a foreign savings account to 300 percent. A percentage that is unprecedented in our country. At least that is what the State Secretary always wants us to believe.

How can I launder dirty money?

Laundering money is not that difficult. Anyone who has a catering business can easily increase turnover slightly to whiten black money from previous years. But undeclared work is not without danger for an employer because the fine for undeclared work can amount to more than 4,500 euros per person. Anyone who has undeclared money in a foreign savings account can still easily make use of the voluntary disclosure scheme. And I know: sometimes you received it privately through an inheritance, sometimes you have had it for many years, and of course it also hurts emotionally to report dirty money. The Tax Authorities are going to ask you all kinds of difficult questions, and you need to have a good answer to them. Fortunately, there are all kinds of consultancy firms that can help you with this.

Additional collection period for black money

With black money you can expect a fine and an additional assessment from the tax authorities. The additional collection period for black money abroad is a maximum of 12 years. After that, limitation occurs. If you have undeclared money in a foreign account, you can voluntarily report this to the tax authorities. You may then receive a lower fine than if the tax authorities are tracking you down and you have not yet filed a tax return.

You can also pay with cash, or buy gold in 2023

For larger purchases with cash, companies are obliged to report this. But anyone who spends cash quietly, without being in the spotlight, will not easily be caught. This does not alter the fact that black money has been in the sights of the tax authorities much more than a few years ago. There is even a moral call to report black money, under the guise that the extra tax revenues can reduce tax rates in our country. But it remains to be seen whether many people will be sensitive to this type of argument.

Key lock

What more and more people will do is see if they can’t obtain additional advice. What is more advantageous for them: declaring with the risk of a fine or simply placing the money in a country where banking secrecy is still guaranteed. In that sense, the playing field has changed: simply taking the money in the trunk to a nearby country is no longer advisable. But what will it be: Dubai, Andorra or further away. There are still plenty of options open. That much is certain.