Taxation – Investigation and tax deadlines

The Belgian federal government has recently introduced significant changes to tax investigation and taxation deadlines, aimed at reinforcing legal certainty for taxpayers while optimizing tax administration procedures.

Henceforth, in the event of suspected tax fraud, the tax authorities must notify the taxpayer of any concrete indications of fraud before extending the investigation period. This measure guarantees greater transparency and protects taxpayers rights by avoiding extended deadlines based on mere presumptions.

The exceptional tax assessment period in cases of fraud has been reduced from 10 to 7 years. This reduction is intended to limit the period during which taxpayers can be exposed to tax adjustments, while maintaining a sufficient period for the administration to carry out its investigations.

The distinctions between semi-complex and complex returns have been abolished, in favor of a single category of “complex return”. This simplification makes it easier for taxpayers to understand their tax obligations, and standardizes the 4-year tax deadline for these returns.

These changes apply retroactively from the 2023 tax year, affecting income for 2022 declared in 2023. This retroactivity allows for immediate application of the new rules, while respecting the principles of legal certainty.

All these measures are designed to :

• Enhance legal certainty for taxpayers by clarifying deadlines and procedures.
• Optimize tax administration deadlines for more efficient case management.
• Clarify the complex concepts used in the 1992 Income Tax Code (WIB 92).
• Rebalance powers between tax authorities and taxpayers, by making the use of extended deadlines more demanding.
• These reforms are part of a drive to modernize the Belgian tax system, ensuring a balance between the needs of the tax authorities and the rights of taxpayers.