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Tax-dodge scheme exposed
Economics

Tax-dodge scheme exposed

14.03.2012 From our online archive
Hundreds of business chiefs in Belgium have been exposed for fraudulently receiving their salaries in Luxembourg and thus avoiding paying taxes in their own country.

(JB) Hundreds of business chiefs in Belgium have been exposed for fraudulently receiving their salaries in Luxembourg and thus avoiding paying taxes in their own country.

The tax-dodge was reported by broadcasting company RTBF on Thursday morning.

Their website said that the fraud concerned the leaders of some 400 highly developed Belgian companies.

Each leader was able to avoid paying taxes in Belgium by installing a front company in the Grand Duchy, which would pay them at a lower rate of taxation, allowing them to pocket more money.

Belgian Socialist Senator Ahmed Laaouej called the scheme a “large-scale fraud” and feared that the discovery was merely the tip of the iceberg. While 400 companies have been found registered with one accountant, it is thought that the fraud may be more widespread if other accountants are using the same practices.