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Uncertainties over latest tax amnesty plans

11:50 19/03/2013

The new tax amnesty plan featured in the federal government’s 2013 budget will allow corporate fraudsters to regularise their black money, but legal uncertainties in the draft proposal could result in many reconsidering their decision to come clean. One of the novelties of this plan is that, for the first time, it also covers serious fraud. The draft contains two modules. Taxpayers believed to have been involved in non-corporate fraud – for example, by placing their savings in a Luxembourg bank account – will pay the tax that was due, plus 15%. Those guilty of serious fraud will see their capital taxed at a rate of 35%, with income tax to be paid on all revenue, plus 20%. They will also have to specify how they evaded tax. Cases will be forwarded to the anti-laundering unit which, in turn, can refer to prosecutors if serious fraud is deemed to have been organised and to the detriment of a third party. The fact that fiscal amnesty does not necessarily mean criminal amnesty may force many fraudsters to reconsider their decision to repent. The amnesty, through which the authorities hope to make €500 million, will start in June and last for six months.

Written by The Bulletin