As you may know, following an instruction of the Belgian tax authorities dated 27 July 2011, the tax inspectors will apply a more rigid and strict approach to the secret commissions’ tax in the case of a tax audit. This is i.e. relevant where benefits in kind have not been properly reported.

Two recent parliamentary questions were raised in this respect and the Minister of Finance has now announced that he will instruct the tax administration to draft a note providing clarifications on the application of the secret commissions’ tax. The note would have retroactive effect. It seems that the Minister of Finance will take a less strict position. The good faith of the company and the relative importance of the error made should be taken into account to determine whether the 309% tax should be applied.