What is the evidentiary value of CRS reports in Belgium ? 

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January 31, 2025

Since 2017, the Common Reporting Standard (CRS) has been the global framework for the  automatic exchange of financial account information between tax authorities. This system,  developed by the OECD, aims to combat tax evasion by ensuring that tax authorities receive  financial data about their residents from foreign jurisdictions. The Belgian tax administration  uses CRS reports to verify taxpayers’ financial holdings abroad and ensure compliance with tax  obligations. If you have informed your foreign bank that you are a Belgian tax resident, it is most likely that the Belgian tax authorities will soon be informed of your foreign bank account. 

What information is included in CRS reports? 

CRS reports contain various financial details, including: 

• The identity of the account holder (i.e. name, address, tax identification number, and  country of tax residence). 

• The account balance at the end of the reporting period. 

• Financial income, such as interest, dividends, and proceeds from the sale of financial  assets. 

• Certain insurance contracts and their cash values. 

These reports are compiled and submitted to tax authorities by financial institutions such as  banks, investment funds, and insurance companies. 

Can the Belgian tax authorities rely on CRS reports as evidence? 

Yes, in a ruling issued in March 2024 by a Belgian tax court, it was confirmed that CRS reports  hold strong presumptive evidentiary value. The tax administration is permitted to assume the  accuracy and reliability of the data contained in these reports, as the information is provided  by third-party financial institutions rather than by the taxpayer themselves. Who bears the burden of proof in case of discrepancies? 

If the information in a CRS report differs from the data declared by the taxpayer, the burden of  proof shifts to the taxpayer. This means that it is up to the taxpayer to demonstrate that the  CRS data is incorrect. For example, if a taxpayer claims that the reported account balance is  incorrect or that a certain financial asset should not be taxed in Belgium, they must provide  documentary evidence (e.g. corrected bank statements, legal agreements, or a statement from the financial institution abroad). 

What are the implications for Belgian taxpayers? 

Given the high evidentiary value of CRS reports, taxpayers should be particularly diligent in  reviewing their financial account statements and ensuring their Belgian tax declarations  accurately reflect their global assets and income. If errors or inconsistencies are detected in a  CRS report, it is advisable to proactively contact the relevant financial institution to request  corrections before the tax authorities raise any issues. 

Taxpayers facing disputes regarding CRS data should consider seeking legal or tax advice to  ensure that they can effectively challenge incorrect information and avoid potential penalties  or reassessments by the Belgian tax authorities. 

TAXPATRIA® can assist you with your foreign bank account reporting and any necessary  dealings with the Belgian tax authorities.

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