Belgium also supports EU directive against tax evasion

Belgium also approves of the recently proposed European directive against tax avoidance practices (Anti Tax Avoidance Directive, ATAD). “This new directive provides a perfect balance between aiming for a fair tax system and boosting economic growth,” Minister of Finance Johan Van Overtveldt says. He points out that Belgium has always played a pioneering role in the fight against tax avoidance and for more transparency in tax issues. “And we will continue to do that in the future.”

To be more specific, member states will be given more time - until 2024 - to implement the new European regulation for limiting the interest deduction. It is in this regard maximum harmonisation with the OECD’s tax initiatives can also take place. “We have pleaded strongly for proper harmonisation with these OECD The Organisation for Economic Cooperation and Development (OECD), established in 1961 as a result of the Marshall Plan, is a cooperation agreement between 34 countries in order to study and coordinate social and economic policy. The member countries try to solve their problems jointly and to mutually align their international policy. The organisation also collects statistical information to make comparative analyses. These OECD analyses are a valuable basis for the N-VA to test policy against itself or even to give shape to it. OECD agreements”, Johan Van Overtveldt explains. “In this way we’ll avoid having the EU literally price itself out of the market, along with all the consequences on our growth, investments and employment that come with it. In that way we can discourage tax avoidance more strongly, without economic damage.” The new directive will also provide a number of options to the member states, such as the exemption of up to three million in interest and transitional rules for current loans. “Member states will thus be able to work on an approach that works for them within that framework,” Johan Van Overtveldt states.

Level playing field

In the new EU directive, a statement will also be included that pleads for an internationally level playing field. “The fight against tax avoidance can only be successful if all countries put their weight behind it, which is why it is of paramount importance that an international partnership network as broad as possible be sought,” Johan Van Overtveldt concludes.