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Belgium Tax avoidance is understood as a legal act - unless deemed illegal by the tax authorities or, ultimately, by the courts - of using tax regimes to one's own advantage to reduce one's tax burden. Relevant legal definition(s) of tax-related offences Tax evasion is defined as an illegal act of evading taxes by concealing income, earned either legally or illegally, from detection and collection by the tax authorities. Money laundering refers to acts involving the processing of proceeds of crime to conceal their illegal origin and bring them back into the legal economy. Legal text Belgian Income Tax Code Law of 11 January 1993 on preventing use of the financial system for purposes of money laundering and terrorist financing Nature of the offence Criminal Criminal Objective element Tax fraud: Violation of the tax law The conservation of transfer of money or assets for the purpose of concealing or disguising their illicit origin or assisting any person who is involved in the offence from which this money or these assets derive to evade the legal consequences of his actions The acquisition, possession or use of money or assets known to be of illicit origin Positive list describing when the origin of the money is illicit Mental element Fraudulently or with intent to harm (Article 449 of Belgian Income Tax Code) Sanction Other tax-related crimes Aggravating / mitigating circumstances Committed by organised group Committed by organised criminal group Legal persons/natural persons Also apply to corporate entities Also apply to corporate entities Other information Punishes the laundering of the proceeds of any predicate offence, tax offences included

Statistical data on tax avoidance, tax evasion and money laundering Belgium 2013 2014 2015 2016 Comments FIU: Belgian Financial Intelligence Processing Unit Cel voor Financiële Informatieverwerking - Cellule de Traitement de Informations Financieres Human Resources Budget ( ) Type of FIU Total number of reports disclosed Including Suspicious Activity Reports (SARs) Including Suspicious Transaction Reports (STRs) Including Unusual Transaction Reports Including Cash Transaction Reports Including Currency Transaction Reports Including External Transaction Reports Audits conducted Court Cases Total number of proceedings started Number of pending/unresolved court cases Total number of convictions Including of natural persons convicted Including of legal persons Number of court cases resolved with an acquittal Number of court cases resolved in another way Number of court cases resolved in sentences Amount of seized financial means Including natural persons Including corporate bodies Including fines MONEY LAUNDERING The FIU is an independent administrative authority with legal personality, in charge of processing and forwarding information in order to combat money laundering and terrorist financing, including the financing of proliferation-sensitive activities or the delivery of nuclear weapon delivery systems. Composed of legal and financial experts and a senior officer seconded from the federal police. Administrative Receives STRs from disclosing institutions on the basis of which an analysis can be started.

Amount of fines Including imprisonment of which, conditional sentence of which, unconditional imprisonment Belgian Ministry of Finance Human Resources Budget ( ) Number of cases investigated Number of Tax Audits conducted OTHER TAX-RELATED OFFENCES Tax audits are performed by a subdivision of the Belgian Ministry of Finance. Tax fraud audits are performed by the Special Tax Inspectorate, also within the Belgian Ministry of Finance. When there is reasonable suspicion of money laundering or terrorism financing, obligation to transmit to the FIU. Number of Site Visits Taxes Debited on the basis of Audits Number of tax offences reported The Belgian Tax Administration may inform the Public Prosecutor of facts which are punishable under the tax laws, only with prior authorisation of the Regional Director. When a tax auditor suspects that there is a case of tax fraud, it can report, via a formal complaint or report, its suspicions to the Public Prosecutor. Court Cases Total number of proceedings started Number of pending/unresolved court cases Total number of convictions Including of natural persons convicted Including of legal persons Number of court cases resolved with an acquittal Number of court cases resolved in another way Number of court cases resolved in sentences Amount of seized financial means Including natural persons The Public Prosecution Service has exclusive power to prosecute individuals and legal persons.

Including corporate bodies Including fines Amount of fines Including imprisonment of which, conditional sentence of which, unconditional imprisonment

Belgium Processing and analysing the Panama Papers data Supervisory activities Investigations initiated (Pre) trial proceedings initiated Fines and sentences Other information Interventions in response to the publication of the Panama Papers 116 offshore companies from the Bahamas leaks are linked to Belgium, of which 92 have an address in Belgium. The information derived from the Panama Papers is in investigation. As of 14 December 2016, 174 files of the Panama Papers are in investigation by the Special tax Inspection. 15 of them are completed.