UBO in conflict with the privacy of entrepreneurs

What is a UBO?

The abbreviation means Ultimate Beneficial Owner, i.e. the person or entity that is the ultimate beneficiary of the company. Certain financial and other organisations, including banks, currency exchange offices and insurers, are subject to mandatory disclosure of the UBO if doing business with any party. The underlying reason of this provision is preventing natural persons with malintent, such as money-laundering or financing terrorism, from being able to hide behind a company, foundation or other legal entity.

Which data will be kept?

For companies: the ultimate beneficial owner of a legal entity. This is the natural person who holds an interest of at least 25% in the legal entity’s capital or can exercise at least 25% of the voting rights at the general meeting of shareholders or is the beneficiary of at least 25% of the legal entity’s capital.

Final start?

Initially from 16 October 2017. For practical reasons, companies, a(i)sbl and foundations got a procedure introduction time to collect and hold information on their beneficial owners  so the final first registration is delayed until the 31st march 2019.

Accuracy

Every change must be mentionned within the month.

Every year the accuracy must be confirmed.

Who may look into the register?

The authorities has unlimited access.

Civilians, who can demonstrate the importance for the foundation or other legal entity has a limited access.

Invisibility

After registration there’s a possibility to receive excemption, in this case the beneficial must be a public person, a prominent politician or in case of fraud, abduction and extortion.

 Penalties for non-compliance

It is important for you to accurately and structurally document your efforts. Ensure that you can demonstrate compliance with the Money Laundering and Terrorist Financing (Prevention) Act in the event of announced or unannounced inspections. Due to the complexity and strict rules, an increasing number of organisations chose to automate the process.

Penalties up to EUR 1,350,000 may be imposed for non-compliance.

These sanctions are separate from a range of other administrative or disciplinary sanctions that may be imposed.

Ultimate parent company

In addition to the Ultimate Beneficial Owner or UBO, there is something referred to as the Ultimate Parent Company (UPC). That is the company on the very top of the organisation structure.

 

Cars and taxation – Never Ending Story – new from 2018


Tax deduction scheme starting from 01/01/2018 to 31/12/2019:

In the corporation tax: the deduction scheme as we know it today, is retained to 31/12/2019. The car will be classified according to its CO2 emission in a particular level of deduction.

Personal income tax: from 01/01/2018 the general deduction percentage of 75% won’t be applied anymore. Since the Government wants to encourage the self-employed in greening their vehicle fleet, the deduction will be comparable to the  corporation tax but with a minimum deduction of 75%. You can get a higher deduction as a self-employed if the CO2-emission of your car is lower and consequently in a higher level deduction.

A distinction is, however, made from 01/01/2020:

– Vehicles purchased before 01/01/2018 remain of the above-mentioned deduction regulation as long as they are used (that is, if you used the car for 15 years, you’ll have right to the deduction arrangement for 15 years of at least 75%).
– Vehicles purchased after 01/01/2018 will be brought into line with the then-current arrangement in 01/01/2020 (further explained below).

Tax deduction scheme from 01/01/2020:

Starting from 01/01/2020,  the deduction arrangement both in the corporate income tax as income tax will be adjusted. There will be a formula that will be applied to determine separately the deduction of each car.

The formula will look as follows:

120% – (0.5 x grams of CO2/km x coefficient)

The coefficient is:
1 for diesels and hybrid diesels
0.95 for gasoline and hybrid petrol
0.90 for natural gas with less than 12 tax HORSEPOWER

The maximum deduction will 100% and the minimum 50% deduction. However, if the CO2 emission is 200 grams or more per kilometer, the deduction is 40%.

For cars purchased before 01/01/2018 this scheme will not be applied on the personal income tax!!!
Special tax deduction for hybrid cars:

Starting from 01/01/2020 the so-called ‘ fake ‘ hybrid cars will be …….clearly we’re talking about hydride plug-in vehicles and not cars that might be considered as hybrid and obtain their electric power from, for example, the remactiviteit and charge while driving.

To determine the deduction percentage of ‘ fake ‘ hybrid cars, it is important to know the capacity of the battery. There are two possibilities:
– Capacity of at least 0.6 Kwh per 100 kg vehicle weight = CO2 from the hybrid version to handle.
– Capacity less than 0.6 Kwh per 100 kg vehicle weight = CO2 by the same type of vehicle with a classic fuel engine or if there is no comparable version with fuel engine is, the CO2 emissions of the hybrid version 2.5 times.

The obtained CO2-emission will be used to determine the percentage of deduction of the car expenses as for the calculation of the benefit in kind!

There is an important exception for the hybrid cars ordered before 01/01/2018. These cars continue to benefit the CO2-emission of the hybrid version, even after 01/01/2020.
It is not necessary that the vehicle has been delivered or registered for 01/01/2018. If you are considering the purchase before 01/01/2018, it is sufficient that you a signed order form or a signed leasing contract dated before 01/01/2018.