Solidarity contribution on company car - Program Law
On 31 May 2006, the Government introduced its draft bill of the so-called Program Law(*) to Parliament.
Context
As you probably know, from 1 January 2005, a new solidarity contribution based on the C02-emission of company cars is due by the employer in case the car is also used for private purposes.
News
Subject to the enactment of the new Program Law, a new civil sanction with regard to the payment of these solidarity contributions will retroactively apply from 1 January 2005.
Employers omitting to report the company cars subject to solidarity contributions or who provide false declarations now risk a new civil sanction equal to the double of the solidarity contributions evaded.
However, this civil sanction will not apply to employers who will regularise the solidarity contributions for the period between 1 January 2005 and 31 March 2006 by 30 June 2006 at the latest.
In contrast, employers who would not regularise their non-compliance by 30 June 2006 will be subject to this new civil sanction that will apply in addition to other civil and criminal sanctions.
It should be stressed that the above is part of the draft bill of the Program Law and may still be subject to amendments before being finally passed by the Belgian Chamber of Representatives.
