The Belgian and the French tax authorities entered into a new co-operation agreement to foster exchange of information and administrative co-operation in order to counter tax evasion and tax fraud. This new agreement will apply to income tax, VAT, registration duties, gift tax and inheritance tax. The agreement will apply as of calendar year 2002.

From an income tax perspective, we note that the agreement provides for an automatic exchange of information relating to taxable income (pay, director’s fees, pensions, profits investment income, real estate income…) and to the amount of income tax assessed by one State on a resident of the other State. There will also be an intensification of spontaneous exchange of information with respect to a change of the tax residence from one State to the other State. The agreement also allows the French and Belgian tax authorities to simultaneously conduct tax audits on their respective territory and to exchange the information so collected. Also, tax officers from one State may under certain condition collect tax information on the territory of the other State.

The Official Gazette extract is available at http://www.hrconsulting.be/headline.html?lk=200210311

Reference: Belgian Official Gazette, 25 October 2002, pp. 49023-49028