newsletter What if you had a tool that would allow you to spot potential suspicious transactions Magnifier Quality of accounting

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1 2012 newsletter no 4 newsletter New invoicing rules as of 1 January 2013 FAQ: END OF YEAR CHECKLIST Interesting ruling on the transfer of a family-owned business PAGE 4 PAGE 8 PAGE 13 Magnifier Contents Magnifier page 1 Edito page 2 New invoicing rules as of 1 January 2013 page 4 What if you had a tool that would allow you to spot potential suspicious transactions and accounting entries in your systems with a simple push of a button? Would you still like to spend days or weeks going to series of transactions looking for a needle in a hay stack? BDO has developed a magnificent tool that can assist you with this. In this article we present Magnifier to you. The accounting is an extensive source of information for a company, reflecting the business and the different processes that form the company. This extensive source of information is used for multiple purposes and by different stakeholders in order to allow them to get a better understanding of how the company is doing. This barometer function has been used for ages and remains still relevant. We know that the quality of the accounting is as good as the quality of the entries that are made. Quality of accounting To ensure the quality of the accounting entries, every company has its system of internal controls. The set of internal controls in the accounting are there to provide reasonable assurance over the reliability of the financial reporting. Two key questions need to be answered here: 1. Are we controlling the right things? The company might put controls on what it fears, but are the fears really reflecting the risks? 2. How effective are the controls that have been implemented? Sometimes internal controls are complex as they might involve multiple actors, big data volumes or require a joint skill set of accounting, internal control and informatics. The need for a quality check of the accounting information is clear. Today there are numerous audit software packages on the market that can help to collect data and Social News - New 2013 wage limits in accordance with employment contract law - The Court of Justice rules on the irrefutable presumption of self-employed activity for directors - Will the new Labour Relations Act help to clarify the distinction between (false) employment and (false) self-employment? page 5 FAQ: End of year checklist page 8 10 years after CBN recommendation no. 126/17: Final thoughts, while still possible page 10 Acquisition of a fixed asset at a variable price page 11 Interesting ruling on the transfer of a family-owned business page 13 Una via or how lawmakers are choosing to penalise tax violations page 14 Accounting treatment for intangible fixed assets: Analysis and comparison with IFRS standards page 15 Belgian withholding tax on dividends under pressure page 17 Short News Agenda page 19 BDO is always on the lookout for new talent page 20

2 2 EDITO Risk & Assurance Service 2012 newsletter no 4 Edito As a loyal visitor to our BDO website, you have undoubtedly viewed our section on the new fiscal budget measures for It was barely a year ago that a large-scale, radical reform consisting of numerous new tax measures generated quite a bit of debate and uncertainty (recall the complicated rules concerning the system of withholding tax on dividends or company cars, for instance). To an extent, some of the measures being proposed take this criticism into consideration. Other measures restrict existing incentives or constitute new taxes altogether. The system of withholding tax on dividends for 2013 is becoming a bit simpler, but also more expensive. Not even a full year has passed since the introduction of the additional 4% levy on high levels of dividend income and its associated reporting obligation, and it is already being done away with. This is coupled, however, with a generalised increase in the withholding tax on dividends to 25%. The taxman takes, but can be generous as well: the requirement introduced in 2012 to declare dividend income on your personal income tax return - even if that income is subject to withholding tax - is also being repealed. The colossal 309% tax on secret commissions is also being mitigated. A substantial reduction in this rate is not the only thing being considered; the tax itself will also be applied more fairly. Restaurant expenses, for example, will no longer be targeted. And when the beneficiary is still subject to tax on the benefit, this special assessment will not apply. Corporations have remained relatively unscathed during this budget cycle. As usual, the notional interest deduction rate is being further reduced (only 2.74% as from assessment year 2014). One thing that is new is the introduction of a 0.4% capital gains tax on shares for large companies. Because no deductions apply to this tax, it also constitutes a minimum level of taxation. The issue of tax regularisation will begin to fade in 2013 and will completely disappear as from 2014, though another extension and reactivation will occur first. Serious fraud can now be regularised as well. When combined with the fact that statute of limitations on cases of criminal tax fraud will now be extended, more sinners may find this latter form of regularisation to be their last resort. The final legislation will be clarified extensively in the next issue of this newsletter. carry out control scripts over the accounting information. However, the majority of the effort is typically spent on technical tasks and not on the investigation and exploitation of the results of the analysis. Magnifier: a different approach from classical software With Magnifier, BDO wants to offer a different solution, where the time is not spent on the technical aspects but on the investigation itself. Magnifier has been built to exploit the wealth of the accounting information as efficient as possible and to indentify the areas with increased risk that justify further investigation. The picture above illustrates the difference between the classical software assisted audit approach and the Magnifier approach. From dashboard to analysis Magnifier automatically performs more than 200 controls on accounting data, resulting in a list of risk situations, presented in a comprehensive dashboard. The results are represented in a dashboard (see below). Further investigation is subsequently performed by drilling down into the detailed underlying accounting data, which is available from within the Magnifier tool. The pictures above represents the dashboard, the picture below represents how drilling down to the underlying data is performed to analyse the potential anomalies WERNER LAPAGE werner.lapage@bdo.be Chairman of the editorial Board

3 2012 newsletter no 4 Risk & Assurance Service 3 Added value of Magnifier Some examples of the typical tests performed and the added value that Magnifier may bring to your company are: identification of duplicate supplier payments incorrect mapping between group and statutory accounts identification of suspicious accounting entries differences in accounting practices between accounting periods identification of unpaid credit notes implementation of alerts on the local accounting practices in subsidiaries Magnifier is an expert system that does not cover everything, but gives hints, or allows verifying the attention points raised elsewhere. The use of Magnifier is unlimited, the tool can be used in the framework of: evaluation of the accounting department internal audit of financial functions fraud investigation internal Control evaluation and improvement accounting software analysis post-acquisition audit Software as a Service (SaaS) Operating in Software as a Service (SaaS) mode, Magnifier allows to share analyses between team members, but also between customers. The SaaS mode has the advantage that no software needs to be installed on the client s side. The data is uploaded in a central database on a secured system. With SaaS mode the client s can at all times benefit from the latest, most up-to-date version of Magnifier since everything is done from the central system. Stringent security controls have been put in place to ensure the integrity and confidentiality of the client s data. With the technical aspects of the Magnifier enrolment made as easy as possible via the SaaS mode, the real efforts can be put in training. Magnifier is an expert system and the tool offers a lot of functionalities, therefore it s key that the user gets the right level of training. Every client that opts for Magnifier will receive customized training from BDO as well as continued assistance. This is another major differentiator from other auditing tools where training is often limited to a standard tutorial or on-line guidance. Once the standard Magnifier controls are known, understood and used in practice, clients may ask for specific tailored controls to be added to their Magnifier universe. This might for instance include a focused view on specific accounts to allow detailed follow-up on the entries made. Working with Magnifier thus involves a close interaction between the client and Magnifier. Over time the client will become more independent and perform tasks autonomously as indicated in the picture below. Magnifier In order to get assurance over the accounting and the financial reporting, one must evaluate the controls by analyzing the facts, not by sample testing but by reviewing every entry made. To realize this, BDO offers a new approach and a new tool Magnifier. In springtime 2013, BDO Academy is organising the next Magnifier event. Keep an eye on our events calendar! If you want to receive more information on this, please send an to ras@bdo.be Koen Claessens koen.claessens@bdo.be BDO Risk & Assurance Services

4 4 TAX 2012 newsletter no 4 New invoicing rules as of 1 January 2013 Invoicing requirements are subject to fundamental changes as from 1 January 2013 (law of 17 December 2012) in accordance to the European Council Directive 2010/45/EU of 13 July Due to the practical difficulties experienced by taxable persons in respect of the new rules regarding the taxable moment, the VAT administration foresees in a transition period until 31 December 2013 (Decision no. E.T of 19 December 2012). Changes in the Belgian VAT legislation Next to a considerable amount of (smaller) changes foreseen in the new legislation (a.o. regarding e-invoicing, self-billing, enlargement of the cash accounting system, territoriality rules and the mandatory invoicing requirements), the notions taxable moment and chargeability of VAT are subject to changes. The issuance of an advance payment invoice will no longer qualify as taxable moment (and the VAT will not be deductible). Chargeability of VAT Principle: Time of supply As a rule, the taxable event for the supply of goods or services takes place - and thus makes the tax chargeable - at the moment that the goods are being supplied or the service is completed. For the supply of goods or services subject to a successive series of statements or payments (such as the supply of electricity, the long-term lease of a vehicle, etc.), the supplies are considered to be complete upon the expiration of each period with which a statement or payment is associated. It is at that moment that the taxable event takes place and the VAT becomes chargeable. Subsidiary causes of chargeability Advance payment In the event that advance payments are made prior to the supply of goods or the provision of services, the tax becomes chargeable at the moment that the advance payments are received to the tune of the amount that is received. Advance invoice: NO LONGER a cause for chargeability!! The subsidiary cause for chargeability that has existed up until now, namely the issuance of an invoice for the total price (or a part of the price) prior to the time of delivery or the completion of the service will no longer suffice as a cause for the chargeability of VAT as from 1 January The introduction of the 2010 VAT package brought an end to the chargeability of VAT at the moment that an advance invoice is issued, except in the case of services for which the customer was obliged to pay the VAT. From now on, the issuance of an advance invoice will no longer make the VAT chargeable under any circumstances. This means on the one hand that a VAT payer in receipt of an invoice that contains a reference to a VAT amount cannot exercise his/her right to an input VAT deduction before the delivery or the payment has taken place. This is because the VAT is not chargeable yet. But it should also be pointed out that the individual that makes the VAT entry on an invoice (or on an equally valid document) owes this VAT at the moment that the invoice or document is issued, even if he/she has not yet supplied any goods or provided any services. Transitional period until 31 December 2013 Due to the practical difficulties of these new rules, the supplier or service provider can opt between the application of the old rules (i.e. the VAT is mentioned separately on the invoice regarding the advance payment and accounted for immediately) or the new rules until 31 December If the supplier or service provider does not wish to account for the VAT on the requested advance payment immediately, the advance must be requested by means of a separate document (other than an invoice) and no VAT can be mentioned in this document (no VAT rate, no reason why no VAT is charged). In the hands of the customer, this implies that, if VAT is charged on an advance payment invoice (old rules) the VAT is immediately deductible. If the new rules are applied, the customer can only deduct the VAT under the condition this VAT has become due (payment or taxable moment) and he is in the possession of an invoice. Comment With regard to the time of chargeability, it should be noted that there are also a number of special rules governing the on-going and continuous supply of goods or services as well as the intra-community supply or conveyance of goods to another Member State. Electronic invoicing The new law contains provisions further easing the rules on electronic invoicing (including Word documents and PDFs):

5 2012 newsletter no 4 TAX 5 though an agreement from the customer is still required, this agreement no longer needs to be prior and explicit; electronic invoices may from now on also be stored in hardcopy form; if an invoice is nevertheless stored in electronic form, then it may from now on also be stored outside the European Union; in addition to guaranteeing the authenticity of its source and the integrity of its contents, it must henceforth be possible to prove that the invoice corresponds to an actual supply (via audit controls). Self-billing The procedure whereby the invoice can be issued by the customer is also being greatly simplified. There is likewise no requirement that the acceptance of the self-bill be explicit; a prior agreement or the payment of the self-bill will suffice. It is also no longer required for a credit memo to be issued in the same way as the original invoice (i.e., a credit memo can be issued via self-billing even if the invoice is not self-billed, and vice versa). Conclusion Though a number of simplifications concerning selfbilling and electronic invoicing are being introduced as from 2013, proper attention will need to be paid from now on to both incoming as well as outgoing invoices in order to determine when an invoice may - or must - be recorded on the VAT return (when does the VAT have to be paid, and which return can be used to deduct the VAT?). Adjustments to ERP systems may have to be made in order to avoid mistakes. The change made to the time of chargeability of the VAT also has an impact on the applicable VAT rate, the point at which the review period starts, the calculation of the right to a deduction according to a general rate, and the assessment as to whether or not a small business has exceeded the threshold. Kaatje Bondewel kaatje.bondewel@bdo.be BDO Tax Consultants Social Law Social News NEW 2013 WAGE LIMITS IN ACCORDANCE WITH EMPLOYMENT CONTRACT LAW Various provisions of the Law on Employment Contracts of 3 July 1978 provide for wage limits subject to an annual indexation. The new limits enter into force as from 1 January of the year following the year in which they are adjusted, meaning that the new amounts will be valid as from 1 January The annual salary is defined as the gross monthly wages recalculated on an annual basis (i.e. gross monthly wages x 12). The following amounts are added: the double holiday pay, the end-of-year premium and all benefits received pursuant to the employment contract, and the variable pay. The wage limits are specifically relevant for: 1. Probationary period for white-collar employees 2. Arbitration clause 3. Training clause 4. Guarantee deposit 5. Notice periods for white-collar employees 6. Leave of absence for white-collar employees to seek work 7. Non-competition clause for blue-collar workers and white-collar employee Basic wage limit as from 1 January 2012 Indexed amounts as from 1 January 2013 EUR 16,100 EUR 31,467 EUR 32,254 EUR 19,300 EUR 37,721 EUR 38,665 EUR 32,200 EUR 62,934 EUR 64,508 Tom Laureys tom.laureys@bdo.be BDO Legal Advisors

6 6 SOCIAL LAW 2012 newsletter no 4 The Court of Justice rules on the irrefutable presumption of self-employed activity for directors In Belgium, designated representatives of a company or association subject to Belgian corporate income tax or Belgian non-resident income tax were in principle irrefutably presumed to be engaged in a self-employed professional activity. The Court of Arbitration (Ruling no. 176/2004 of 3 November 2004) had already declared the irrefutable presumption to be unconstitutional in 2004 with respect to company representatives managing the company from Belgium, i.e. company representatives residing in Belgium. However, for company representatives who manage a company based in Belgium from a location abroad, the Court of Arbitration ruled that the non-refutable presumption of being engaged in a self-employed activity in Belgium was essential for combating fraud, given that the federal government has neither the necessary information nor authority concerning these individuals at its disposal. The European Union Court of Justice was asked whether, within the framework of its powers to define the conditions for coverage by its social security scheme for self-employed persons, a member state may treat the management from abroad of a company which is liable to tax in that State in the same way as the exercise of an activity within its territory. The ruling (case C-137/11 of 27 September 2012) is clear: Belgian law appears to be inconsistent with EU law insofar as it assumes that company directors residing outside Belgium are irrefutably presumed to be engaged in this activity on Belgian soil. The European Court is hereby clarifying that, to determine the applicable social security scheme, the location in which the activity is exercised must first be determined at European level. Only then can the Member State in question make a determination as to the nature of the activity (self-employed or employee). It is only at that point that a judgment can be made concerning the social security obligations and the payment of social contributions. Relevant in this case are Regulations 883/2004 and 1408/71 on the coordination of social security systems. Belgian companies with representatives who actually manage the company from abroad are advised to take heed of these developments given that the judgment could definitely have an impact on the social security obligations of their representatives. Will the new Labour Relations Act help to clarify the distinction between (false) employment and (false) self-employment? In accordance with case law as established by the Supreme Court, the qualification of the nature of the labour relationship as determined by the parties constitutes the starting point for determining the professional relationship. This starting point has been retained in the amended Employment Relations Act. General criteria Parties are free to choose the nature of their professional relationship. However, when the actual execution of the working relationship exhibits a sufficient number of elements which are incompatible with the way in which the working relationship was characterised by the parties and which thus preclude this characterisation, the contract will be requalified. In addition to the will of the parties, there are three additional general criteria used to determine the working relationship: the freedom to arrange the work schedule; the freedom to arrange the work; the possibility of exercising hierarchical control. Specific criteria The amended Labour Relations Act introduces specific criteria for the following sectors: construction work: this is not limited to the building sector per se as intended by Joint Committee 124; security and surveillance activities on behalf of third parties; the transport of goods and passenger transport on behalf of third parties; activities which fall within the scope of the Joint Committee for the cleaning sector. As of 1 January 2013, a refutable presumption of the existence of an employment contract applies in these sectors when an analysis of the working relationship shows that more than half of the following criteria have been fulfilled: a) the absence of any financial or economic risk on the part of the person performing the work; b) the absence of responsibility and decision-making power regarding the financial resources of the company; c) the absence of decision-making power regarding the procurement policy of the company; d) the absence of decision-making power regarding the pricing policy of the company on the part of the person performing the work, except in cases when the prices have been established by law;

7 2012 newsletter no 4 SOCIAL LAW 7 e) the absence of an obligation concerning the results to be achieved for the agreed-upon work; f) the guaranteed payment of a fixed compensation, regardless of company performance or the amount of work performed; g) not being an employer of personally and freely hired personnel, or the absence of the option to hire personnel or appoint one s own replacement for purposes of carrying out the agreed-upon work; h) not functioning like a company with respect to other persons or working primarily and habitually for a single co-contracting party; i) working in locations in which one is neither the owner nor tenant, or working with materials which are provided, financed or secured by the co-contracting party. This presumption does not apply to working relationships between family members. Because it concerns a refutable presumption, it can be contested by all legal means, including the general criteria specified in the Labour Relations Act. Katleen engelen katleen.engelen@bdo.be BDO Legal Advisors

8 8 FAQ 2012 newsletter no 4 FAQ END OF YEAR CHECKLIST The year end is traditionally the exquisite moment to reflect on certain transactions to avoid unpleasant surprises or in view of optimising the tax situation of your company. Below is a non exhaustive list of questions that may be relevant for the 2012 year end. Were any tangible fixed assets or stock destroyed or stolen during 2012? If yes, care should be taken to retain physical proof of the effective destruction or theft of assets, such as photos or a court record. Where necessary, it might be wise to contact the relevant technical inspection service with a view to having the destruction or theft of the asset recorded. Have double declining depreciations been effected? If yes, it is recommended to verify: Whether the depreciation percentage exceeds the double amount of the straight line depreciation; Whether the depreciation annuity exceeds 40% of the investment value; Whether the annuity no longer exceeds the straight line depreciation, in case of which the company needs to switch back to the straight line depreciation method. As a reminder, are excluded from the optional regime of degressive depreciation: Intangible assets with the exception of investments in audio-visual works; Assets for which the use is subject to a transfer to third parties; Cars, cars for mixed use, minibuses. Have capital gains on tangible or intangible assets been realised? If yes, the scheme of deferred taxation can be applied on certain conditions. This tax regime applies to tangible assets that are preserved in the company for at least 5 years. The tax scheme allows the spreading of taxes on capital gains over the depreciation period of the re-investment. Have any customers gone bankrupt? If yes, the company must be able to produce a certificate from the receiver confirming the unrecoverable nature of the debt. This certificate must specifically refer to the debt in the sense that a certificate stating that the net assets do not permit any distribution of dividends to unsecured creditors is not sufficient. Have impairments been recorded on commercial debts in 2012? If yes, apart from the importance of being able to individualise each bad debt, the company must also be in a position to prove that the amount of the impairment is reasonable based on specific information, such as: The debtor s financial situation and future prospects; The debtor s history of solvency with regard to both the company and third party creditors; The level of guarantees acquired; Elements permitting the debtor s ability and willingness to repay the debt to be assessed. Does a current account exist (on the name of the company director)? If yes, it needs to be verified whether the interest charged on the current account does not exceed the current market value. Attention also needs to be paid to the risk of interest being requalified as dividends to the extent that: The interest rate exceeds the market rate of interest; The total amount of advances that give rise to interest payment exceeds the sum of taxed reserves at the beginning of the taxable period and the paid in capital at the end of the taxable period. Did the company pay interest to a related company? If yes, it is recommended to calculate the debt/equity ratio. Interest from loans paid or attributed are only tax deductible to the extent that the intercompany loan does not exceed 5 times Do you have any questions on this section? Feel free to send your request to : newsletter@bdo.be

9 2012 newsletter no 4 FAQ 9 FAQ the sum of the taxed reserves at the beginning of the taxable period and the paid in capital at the end of the taxable period. In case the ratio is exceeded, a capital increase could be considered. Is there an excess of unused notional interest deduction in 2012? If yes, it shall be borne in mind that as from assessment year 2013 the balance of notional interest deduction can no longer be carried forward to a next taxable period. The balance from previous taxable periods can to a certain extent still be carried forward for an unlimited period of time. Has a provision for staff bonuses been recorded in 2012? If yes, in order to ensure tax exemption for this type of provision, care should be taken to ensure that: The bonuses are provided for in contracts, i.e. provided for in employment contracts or under a collective employment agreement or similar agreement; The bonuses are individualised, i.e. that the identity of each recipient and the amount of the bonus that will be awarded to him or her must be determined at the closing of the financial year. Has a provision for guarantees offered to customers been recorded in 2012? If yes, it is necessary to be able to establish that the amount of such provisions has been properly determined based on ratios or standards developed over the course of previous years. It should be noted that the provisions can be recorded during the taxable period during which the sales were made, without therefore waiting for the customer to seek assistance. Has a provision for major repairs or maintenance been recorded in 2012? If yes, it should be noted that such provisions are only tax deductible if they relate to repairs that need to be carried out on a periodic basis at regular intervals not exceeding 10 years. In order to be able to justify the level of provisions entered in the accounts, it is strongly recommended that you retain quotations prepared by specialised companies (prepared in 2012). Have research and development (R&D) costs been capitalised in 2012? If yes, bear in mind that such costs are likely to be taken into account for the increased deduction for investment, the amount of which reduces the company s taxable base. It should be emphasised that the company may, irrevocably, opt for the R&D tax credit which amounts to 33.99% of the increased deduction for investment base. This tax credit, which can also be spread out over the amortization period, can be fully offset against the corporate income tax. The balance of the tax credit which could not be offset against the tax for five consecutive tax years is refunded. Companies experiencing tax losses will, therefore, favour the tax credit option rather than the deduction for investment option. Can I request that excess advance payments be carried forward? Yes, a company that determines that advance payments made during 2012 exceed the presumed annual tax may effectively request that this excess be carried forward to the next taxable period. The request must be made, at the latest, on the last day of the second month following the taxable period to which the payments relate, but may not be less than one month from the sending of the copy of the statement of advance payments. It is in the company s interest to request that the payments which offer it the least benefit (in decreasing order: V.A. 4, V.A. 3, V.A. 2 and V.A. 1) be transferred first to the next taxable period. Stéphane Hens stephane.hens@bdo.be BDO Tax Consultants Do you have any questions on this section? Feel free to send your request to : newsletter@bdo.be

10 10 ACCOUNTANCY 2012 newsletter no 4 10 years after CBN recommendation no. 126/17: Final thoughts, while still possible In the second edition of our 2012 newsletter, we reviewed the case of the potential taxation of a company on the difference between a (too-low) purchase price and the actual value of the acquired asset. The case concerned a Swedish company that realised a substantial (and exempt) capital gain on shares in connection with the sale of those shares. This capital gain was possible because the shares were purchased for somewhat less than their fair value. The tax with respect to this firm ultimately failed to materialise. The tax administration s argument - based on the opinion of the Belgian Accounting Standards Board (CBN) - which holds that the estimation of the fair value when making the purchase must be made on the basis of a true and fair view, failed to persuade. The debate concerning the relative precedence of historical price versus true and fair view has been around for a long time. But could an answer be in the offing...or did we already get one? by providing supplementary information in the explanatory section of the financial statements, but it is also possible to deviate from the statutory valuation rules. It is clear that lawmakers are wary of this option to deviate from the rules, because deviating is only possible in exceptional cases. As such, both the deviation as well as its impact on the financial position and the result must be reported in the explanatory section of the financial statements. Put another way, the true and fair view has a supplementary and a deviating function. The relationship between the true and fair view and the other valuation rules is subtle. The CBN views the deviating function of the true and fair view as taking precedence. The Crown favours the supplementary role of the true and fair view (this is simply the reference in the explanatory section of the financial statements). CBN recommendation no. 126/17 CBN recommendation no. 126/17 addresses the determination of the purchase price of assets acquired for valuable consideration or for no valuable consideration. According to the CBN, the purchase price for assets acquired for no valuable consideration - due to a lack of purchase price - corresponds to their fair value, and a result which amounts to the fair value of the acquired asset must therefore be recognised. Assets which are in part acquired for no valuable consideration are also estimated for their fair value. This likewise gives rise to a result amounting to the difference between the fair value and the price agreed upon between parties. The historical price The CBN feels that the determination of the purchase price for assets acquired for no valuable consideration must be debated from the standpoint of an increase in capital, and not from the standpoint of the historical price, given that there is no historical price in this case. Basing the estimation on historical price is an accounting principle, but the CBN believes it is entitled to deviate from it because of the principle of true and fair view. However, the courts generally postulate that the estimation should be based on historical price, whereby all assets forming a part of the company s assets are estimated on the basis of the funds that the company was forced to hand over as consideration for the acquisition. According to the courts, the true and fair view would not make it possible to deviate from the principle of the historical price. True and fair view The true and fair view should be understood as an accurate reflection of a company s capital, financial position and result. The true and fair view is arrived at in the first place Court of Justice of the European Union The rulings of the Court of Justice of the European Union (CJEU) also lean in the latter direction, for the Court believes that the true and fair view is fulfilled by means of the application of the other valuation rules, and not by deviating from them. But this consideration should not be interpreted outside its own context. Application of the matching principle, for example, whereby revenues and expenses are linked to each other and are also recognised in the correct accounting period, can indeed benefit the true and fair view. But application of the historic price, on the other hand, could undermine the true and fair view. A recent preliminary dispute before the Supreme Court sent the question regarding the scope of the negative role of the true and fair view back to the CJEU, meaning that it may be a while before this saga ends. Inflation accounting? In spite of everything, the practice of accounting according to the fair value principle remains quite rare. For now, the CBN itself is saying that its opinion may only be applied to manifest (evident) differences in value. On the other hand, the practise of inflation accounting, whereby a company adjusts its historical prices each year in order to account for a loss of purchasing power, has not been permitted. A deviation from this prohibition must therefore always be legally circumscribed; revaluating assets to their fair value is only permitted because Article 57 of the Royal Decree implementing the Belgian Companies Code permits it. Was the CBN right after all? From a legal standpoint, the deviating role of the true and fair view is remarkable, but from an interpretative stand-

11 2012 newsletter no 4 ACCOUNTANCY 11 point, it is correct. The option to deviate is restricted to the valuation rules contained in the Royal Decree implementing the Belgian Companies Code. In its decree, the Crown provided a non-binding interpretation of the valuation rules, while the other provisions of the Royal Decree (such as the outline for devising the financial statements) concern the public order (or are at the very least binding). Why is this? The section concerning the valuation rules is actually a cluster of principles and postulates (i.e. rules worded in very general terms). This would not have been possible otherwise, given that company operations evolve over time and that rigid rules would not benefit accounting law. The deviation provision therefore ensures the long-lasting legal implementation of accounting law in which the true and fair view serves as a kind of safety net. When looked at this way, it s impossible to disagree with the CBN. Philippe Turco philippe.turco@bdo.be BDO Accountants tax Acquisition of a fixed asset at a variable price Last June, the Accounting Standards Commission (ASC) issued opinion 2012/9 concerning the accounting treatment for acquisition of a fixed asset at a variable price. Restating and explaining certain principles, the new opinion repeals and replaces two previous opinions (126/9-126/10). With general scope, the opinion applies to all fixed assets, whether depreciable or not. In the same vein, the ASC informs us that operations by which fixed assets are acquired at a price which includes, partly at least, a variable component depending on the occurrence of a future, uncertain event, almost never involve tangible fixed assets. However, such operations are common for the transfer of intangible fixed assets or acquisitions of financial fixed assets. The Commission also gives its opinion on two specific topics, namely, first, the capitalisation of the variable prices and, then, amortization of fixed assets with a limited economic life which have been acquired for a price that includes (in part) a variable component that is dependent on a future, uncertain event. Capitalisation of the variable price upon acquisition of fixed assets In general, when it refers to fixed assets, the Commission means the elements of a company s assets intended to be used over the long-term for the exercise of the activity and likely to produce a future economic benefit. As a result, only expenses, of which the investment nature has been established, may be recorded as assets. On the contrary, given that they do not generate any future economic benefit, expenses that are directly related to the immediate revenue of a particular financial year must be recorded as an expense for that financial year, in accordance with the reconciliation of expenses and revenue principle ( matching principle ). With the result that, in the case of a variable price: If the expenses have an investment character -> entered as an asset. If this variable price is directly related to the revenue from a particular financial year -> recorded as an expense in the profit and loss account for the same financial year (a rare case according to the ASA). Examples The commission also provides some examples, purely for illustrative purposes: Example 1: A company acquires all of the shares of another company for a price which consists of three parts: - A fixed amount payable when signing the sales contract -> entered as an asset under the heading financial fixed assets ; - A fixed amount to be paid in 4 instalments on 31 December 20x0, 20x1, 20x2 and 20x3 -> Entered as an asset under the same heading and at the same time as a liability for the same amount given that it involves a future certain debt (fixed term debt); - And a surcharge to be paid in May 20x1 and 20x2 amounting to 30% of the operating profit for the 20x0 and 20x1 financial years respectively, to be allocated to the company acquired -> usually entered

12 12 TAX 2012 newsletter no 4 as an asset (since the investment nature has been established, as the variable parts of the price are paid if a condition precedent is fulfilled, namely the acquired company realising an operating profit) but given this condition precedent, there is no need to record a debt nor increase the purchase price of the acquired shares for as long as this condition is not fulfilled. Example 2: A company obtains a 5-year concession from the city to operate a bistro in the market square for a price made up as follows: - Fixed amount, payable at conclusion of the contract -> entered as an asset under the intangible fixed assets heading; - A supplement to be paid over 5 years corresponding to one percent of turnover realised over the years in question -> recorded as an expense in the profit and loss account if condition precedent fulfilled Other fiscal measures In practice, if the company chooses a straight-line method of depreciation, application of the above-mentioned rule will result, in the case of a likely useful life of ten years, in amortizing the first tranche over ten years, the second over nine years, and so on. From a tax point of view this is not the case: if we use the same example, each tranche should be amortized over 10 years. Nevertheless, the Commission points out that in such a case, amortization is lowest at the beginning of the period at the time when the productivity of the fixed asset is, usually, highest. One solution to the problem would be for the company to choose a reducing balance method of depreciation. It should, however, be pointed out that, from a fiscal point of view, the reducing balance depreciation of an intangible fixed asset is not permitted. Amortization of fixed assets with a definite useful life acquired for a price which includes (in part) a variable component that depends on a future uncertain event The Commission reiterates that the cost of investments with a limited useful life should be accounted for by spreading them out, according to an appropriate plan, over the likely useful life of the asset in question. These provisions, combined with the principle whereby the assets are recorded in the accounts at their purchase value, contrast with fully accounting for the cost of these investments as and when they acquire a definite character. Contrary to certain legal doctrine, case law is also of the same view. Audrey lecroart Audrey.lecroart@bdo.be BDO Tax Consultants As regards the period of amortization of the asset in question, it must be estimated from the time that the company has use of it. It is, moreover, over this period that the accounting for the cost by means of time-based depreciation must be spread out. This useful life is inherent to the asset in question and, in general, does not depend on the price paid or payment in instalments.

13 2012 newsletter no 4 TAX 13 Interesting ruling on the transfer of a family-owned business The Belgian Commission for Advance Rulings in Fiscal Matters (hereinafter referred to as the ARC) has delivered an interesting decision concerning the issue of internal capital gains arising from the transfer of a familyowned business. Organisation of the transfer In the case submitted to the ARC, the situation was presented as follows: The parents were majority shareholders in various companies belonging to the same family-owned group. Their children were also shareholders in some of these companies and were also employed by these companies. The parents decided to give their children shares representing over half of the asset valuation of the group in order for children to become majority shareholders in the companies of the family-owned group. The children then created a limited liability company, holding A, by contributing shares received and shares that they already held. In payment for their contributions, they received shares in the holding company A. The children were appointed directors of the holding company. In order to become a minority shareholder in the holding company A, the parents contributed some shares that they held in group companies to the holding company A. They also decided to sell to the holding company A, the shares of companies B and C of the group. The selling price for the shares was converted into a life annuity and recorded as such in holding company A s accounts. According to the ARC, the capital gains realised by the two children, and their parents as a result of contributing shares held in the various companies of the group to holding company A, constituted the normal management of private assets and were not, therefore, subject to taxation. The same goes for capital gains realised by the parents from the sale of shares, which they held in companies B and C, to holding company A. The shares transferred to the children enabled them to become majority shareholders in the family-owned group which ensures business continuity (especially as the children will be responsible for the day-to-day management of the group). Nevertheless, the parents retained a minority participation which enabled them to assist their children with assuming management of the group; The continuity and profitability of the group was closely linked to the stability of the shareholders. The continuity of the group was aimed at protecting the company and, therefore, employment; The holding company also enables the financial needs of other group companies to be satisfied; The gain realised was due to successful management by the parents of the family-owned companies over more than 20 years. The companies represent a significant portion of their private assets; As regards the sale of shares, the holding company paid the selling price without resorting to bank credit. Furthermore, the fact that this price was converted into a life annuity did not place the group at a disadvantage. Valuable for practice The lesson that can be learned from this decision is that it remains possible, subject to fulfilling certain conditions, to transfer a family-owned company through the contribution/ sale of shares to a new holding company. If this transfer is part of the normal management of private assets, the gains arising from the transaction (contribution of shares and sale of shares) are not subject to tax. Arguments for a favourable ruling In support of its decision, the ARC relied, among others, on the following grounds: The parents desire to divide the family-owned capital between their two children while maintaining family cohesion. What s more, using a limited company also enabled the family assets to be transferred in an effective, simple manner; The transactions were aimed more at satisfying succession-related rather than tax-related objectives; Françoise Verreux Francoise.verreux@bdo.be BDO Tax Consultants

14 14 TAX 2012 newsletter no 4 Una via or how lawmakers are choosing to penalise tax violations The so-called una via law was published in the Belgian Official Gazette, and it did not take long before the first comments on this law were issued. Sure enough, both the tax administration (via two administrative circulars) and the Office of the Public Prosecutors (via its circular) have already published their comments on this new law. Let s review the current situation. Una via? The Law of 20 September 2012 (Belgian Official Gazette of 22 October 2012) lays down rules for the una via principle used for prosecuting tax law violations and for increasing the related criminal fines. For now, the new law applies only to income tax and VAT (consultation with the different Regions of Belgium is still necessary for registration duties and inheritance tax). The purpose of this law is clear: tax law violations must be pursued exclusively as either an administrative case or a criminal case. Lawmakers are hereby seeking to prevent the simultaneous use of government resources that arises when the tax authorities and the courts are engaged side-by-side in the pursuit of such violations. This does not, however, appear to be the approach taken by the law. The principle in the law is restricted to the principle of non bis in idem. This applies to administrative and criminal sanctions. As a result, it does not apply to investigations. Consultation between the tax administration and judiciary In order to implement the law, an (optional) consultation was introduced between the tax administration and the public prosecutor. This would allow either the tax administration (specifically the designated regional director or official) or the public prosecutor to initiate a consultation. The most suitable approach for dealing with the case of fraud in question must be chosen during this consultation. The purpose, however, would be that the pursuit of a criminal case be limited to cases involving investigative procedures (prosecutorial resources, etc.). All current legal avenues for the tax administrations and the public prosecutor s office to exchange indications of tax fraud among one other continue to apply as usual. Consequences Each specific case will in principle - be pursued either by the tax authorities (leading to tax increases or administrative fines as needed) or the criminal authorities (leading to criminal sanctions fines, seizures or imprisonment). Once a case of fraud is prosecuted as a criminal case, administrative fines or tax increases may no longer be imposed (though the tax administration is still able to determine and collect the taxes, duties or levies that were evaded). In this instance, the power to impose administrative tax sanctions (tax increases and administrative fines) will be suspended. However, circular no. 11/2012 states that if merely an investigation is carried out, the power to impose tax increases as well as the prescription period for payment requests will not be suspended. Referral to the criminal court perhaps more favourable? In the event that the public prosecutor s office chooses to pursue a criminal procedure and the fraud case becomes pending before the criminal courts, the administrative tax sanctions and fines will become definitively unimposable. If, following the investigative phase, a decision to dismiss the case is made, the suspension applying to the imposed administrative sanctions would end. Because of this, it could be more favourable to be referred to the criminal courts (and have the charges cleared there) (given that otherwise the suspension would be terminated, meaning that administrative sanctions can be imposed). Within the scope of this una via law, the current maximums for criminal tax fines were raised from EUR 125,000 to EUR 500,000. Surcharges will also apply to the criminal tax fines from now on. Specifically, the new maximum fine is currently determined at EUR 500,000; after the new surcharges are applied, this maximum fine becomes EUR 3,000,000. Naturally we can only applaud this new measure: there is no duplication of work (or expenses) by the government. But given that the new criminal fine will amount to no more than EUR 3 million (for cases from 2007 to the present, only EUR 125,000), we are afraid that certain major cases of fraud will not be adequately punished (since no administrative fine or tax increase can be imposed any longer). In these times of budgetary difficulties, this would seem to be a missed opportunity. Erik Van Asbroeck Erik.vanasbroeck@bdo.be BDO Tax Consultants

15 2012 newsletter no 4 FINANCIAL AUDIT 15 Accounting treatment for intangible fixed assets: Analysis and comparison with IFRS standards The Accounting Standards Commission issued a new opinion in October (2012/13) providing details on the accounting treatment for intangible fixed assets. Here, we provide a summary of this opinion as well as a comparison with the IAS/IFRS standards, in particular the IAS 38 "Intangible assets" standard. Intangible fixed assets are defined as "resources of an intangible nature intended to be allocated on a long-term basis to the activity of the company and likely to bring future economic benefits for the company". The main categories of intangible fixed assets include R&D costs, concessions, patents, licences, trademarks and other similar rights, as well as goodwill. The IAS 38 "Intangible assets" standard also specifies that intangible fixed assets must be identifiable and separable, i.e. that they are likely to be realised separately by the entity. Conditions for capitalisation The Accounting Standards Commission lists several cumulative conditions required for the capitalisation of costs: the usefulness of the product or process (realising the company purpose or enhancing the competitive position) must be shown; the product or process must be clearly defined; the relationship between the costs and the project must be determined separately; the technical practicability of the product/process must be shown; the financial feasibility of the project must be shown. The costs incurred subsequent to the asset being put to use will only be capitalised insofar as they bring about a substantial improvement. Under the IFRS, an intangible fixed asset must be recorded if: The cost of the asset can be reliably estimated; It is likely that the future economic benefits attributable to the asset will go to the entity. It should also be noted that the IAS 38 standard distinguishes between research costs and development costs; only the latter may be recorded as an asset on the balance sheet. As regards research costs, they must be recorded under charges in the profit and loss account for the period. Formation expenses must also be directly dealt with under the IFRS. Valuation Intangible fixed assets are valued at their purchase price (including ancillary expenses) or at cost price. Cost price may not exceed a conservative estimate of the asset's value in use or its future return for the company. Under the IFRS, these assets are recorded as an asset at their fair value. Amortization It is the responsibility of the management body to determine the useful economic life of the fixed asset for the company. The intangible assets must be amortized according to a plan drawn up in accordance with Art. 28 of the Royal Decree of The acquisition cost is spread over the useful economic life of the fixed asset and the amortization will start as soon as the asset is put to use. The useful economic life may not under any circumstances exceed the potential useful legal life of the asset. Art. 61 of the Royal Decree of also provides that any amortization period for R&D costs or goodwill greater than 5 years be justified in the notes to the annual accounts. Under the IFRS, the duration and method of amortization will have to be reviewed on an annual basis when closing each financial year. If the useful life of the asset differs from that previously estimated, the amortization period will then have to be modified in accordance with the new estimate. Intangible fixed assets with an indefinite economic life are relatively rare according to Belgian standards and this qualification is likely to be modified if circumstances require. They will only be the subject of impairment in the event of a capital loss or lasting depreciation. In accordance with the IAS 38 standard, intangible fixed assets with an indefinite economic life, such as goodwill, are not amortized. However, companies are required to conduct annual "impairment tests" (see IAS 36 "impairment of assets" standard) by comparing the recoverable value with the book value or where the company becomes aware of an indication of impairment. Revaluation The Belgian standards do not permit revaluation of intangible fixed assets. IAS 38 permits revaluation at an amount corresponding to the fair value on the revaluation date, less any amortization and impairment loss. Residual value Contrary to Belgian standards, the IFRS standards provide for

16 16 Financial Audit 2012 newsletter no 4 a residual value for intangible fixed assets. This is presumed to be zero unless: A third party has undertaken to acquire the asset at the end of its useful life; There is a market for the asset. The residual value may then be determined by reference to the market. Accounting treatment The costs incurred by the company for the purpose of creating an intangible fixed asset (R&D) are recorded during the financial year in the expense accounts according to type. At closing, these expenses are recorded as an asset (debit 210) offset against a capitalised production account (credit 72). Conclusion The latest opinion from the Accounting Standards Commission does not bring anything new to current accounting practice in the area of intangible fixed assets. However, it should be kept in mind that the differences with IFRS standards may result in significant adjustments to financial statements. Alain Schellekens alain.schellekens@bdo.be Charlotte Gregoire charlotte.gregoire@bdo.be BDO Auditors

17 2012 newsletter no 4 TAX 17 Belgian withholding tax on dividends under pressure The Belgian legislator must make gradual adjustments to rules governing withholding tax. The ruling of the Court of Justice of the European Union (CJEU) in the case of Tate & Lyle Investments Ltd (C-384/11) is in line with previous judgments of the CJEU and with decisions of the European Commission, which have systematically condemned national withholding tax schemes that treat residents and non-residents differently. The ruling does not therefore represent an unexpected precedent; a condemnation of the Belgian State has been in the offing for some time. The Belgian government has thus far nevertheless been unwilling to amend its legislation. Tate & Lyle Investments Ltd The case involved a UK company (Tate & Lyle Investments Ltd) that held a 5% participation having a nominal purchase price of more than EUR 1.2 million in a Belgian company (Tate & Lyle Europe NV). In the wake of a (taxed) restructuring of the Belgian company involving the transfer of certain assets to a new Belgian company, the UK company was deemed to have received a (liquidation) dividend that was subject to a 10% Belgian withholding tax. These types of (fictitious) dividends are subject to withholding tax for both Belgian resident and non-resident receiving companies in cases when they do not fall under the exemption stipulated in the parent subsidiary Directive, which requires a minimum participation of 10%. For non-resident companies, however, the withholding tax that is withheld often represents the final taxation, whereas Belgian resident companies can deduct the withholding tax that was withheld from the corporate income tax they owe or claim reimbursement. Double taxation possibly arises from dividends for which the distributing subsidiary was already taxed and which are subsequently taxed again in the hands of a minority shareholder. When a Belgian resident minority shareholder receives these types of dividends, double taxation is avoided via the application of the dividends received deduction on the condition of a minority participation of 10% or EUR 1.2 million (this threshold was most recently raised on 1 January 2010 to EUR 2.5 million). The dividends received deduction ( aftrek definitief belast inkomen / déduction revenus définitivement taxés ) results in only 5% of the dividend income being subject to corporate income tax (an effective tax rate of no more than 1.7%). This mechanism does not apply to non-resident minority shareholders. The double tax treaty between Belgium and the United Kingdom, moreover, provides for no mechanism in this case that would allow the Belgian withholding tax that was withheld to be deducted from UK corporate income tax or reimbursed. The tax rate on the dividends distributed to the UK company was therefore higher than it would have been had this company been a Belgian company. The CJEU s opinion is that this type of difference in the way that resident Belgian and non-resident companies are treated could discourage foreign companies from investing in Belgium and as a result constitute a prohibited restriction on the free movement of capital (Article 63 of the Treaty on the Functioning of the European Union). Significance of the Ruling This ruling is significant mainly for non-resident investors (companies) that hold a participation in a Belgian resident company of less than 10% but who do meet the aforementioned participation threshold for the dividends received deduction, and situations whereby the double taxation convention with that country does not provide for a mechanism for deducting the withholding tax imposed in Belgium from that country s corporate income tax or being reimbursed for it. This ruling is also of interest to non-resident credit institutions, insurance companies and stockbrokers that paid Belgian withholding tax on dividends received from their Belgian participations prior to assessment year 2010, as no participation threshold applied to Belgian credit institutions, insurance companies and stockbrokers for the dividends received deduction prior to assessment year As a result, non-resident credit institutions, insurance companies and stockbrokers can, on the basis of this ruling, recover the Belgian withholding tax that was withheld on the dividends they received prior to assessment year In our opinion, as a result of the third countries function of the free movement of capital, companies headquartered outside the European Economic Area could also invoke this ruling to avoid paying Belgian withholding tax on the dividends they have received or to recover previously paid withholding tax that had been unfairly assessed. Recovery options Based on this CJEU ruling, non-resident companies that received dividends from Belgian participations which amounted to less than 10% but which represented a purchase price of at least EUR 1.2 million (now EUR 2.5 million) and where-

18 18 TAX 2012 newsletter no 4 by, based on the double taxation treaty with that country, the Belgian withholding tax that was withheld could not be deducted from that country s (local) corporate income tax or could not be reimbursed, have the option to recover the previously withheld yet unfairly assessed withholding tax. By means of an objection procedure or an official exemption procedure, the unfairly assessed withholding tax can be recovered within a 5-year period beginning on 1 January of the year in which the withholding tax was paid. We would also note that, in our opinion, for the unfairly assessed withholding tax that was paid prior to 1 January 2011, there are good arguments to be made for recovering withholding tax that was unfairly withheld as far back as 10 years ago in implementation of the common law limitation period. Sarne Willo Sarne.willo@bdo.be Liesbeth Broeckx Liesbeth.broeckx@bdo.be BDO Tax Consultants

19 2012 newsletter no 4 NEWS 19 SHORT NEWS Antwerp office relocating André Kilesse appointed President of the FEE We are pleased to announce that our colleague, André Kilesse, Chairman of BDO Belgium, has been appointed President of the FEE (European Federation of Accountants) on 13 December Vlerick Prime Foundation Partnership As part of the Prime Foundation Partnership with Vlerick, a conference on purchasing your own company is being held at de Montil Convention Centre in Affligem on 21 February Two of our BDO colleagues, Alexander Veithen (Corporate Finance Partner) and Eric Bastin (Corporate Finance Manager), are scheduled to speak at this 1-day conference. In early April 2013, our colleagues in the Antwerp office will be relocating to a brand new office located just metres from their current location. This office will be new in all respects: it will be the very first BDO office to implement the Activity- Based and Clean Desk concepts. We are already getting quite excited about this move. BDO collaborates on first edition of the Business Game for Architects at Limburg College-Hasselt University The Department of Architecture at Limburg College, which will be incorporated into Hasselt University in the next academic year, has organised a Business Game for final-year architecture students (Advanced Master). Its purpose is to provide future architects with insight into the way business is conducted - not just in the real estate sector, but also beyond. The Corporate Finance and Financial Audit divisions of BDO were asked to assist with the Business Game, which constituted the exam for the Management 5 (introduction to business management) course. On 22 and 23 February 2013, BDO will again be participating in the Solvay Business Games (the largest business game event in Belgium)! Update released for the Belgian Chart of Accounts App AGENDA BDO released an update to its Belgian Chart of Accounts App in early November In addition to being optimised for the iphone 5, the Chart of Accounts is now also available in German. 21 February 2013 Buy your own company conference February 2013 Solvay Business Games

20 20 NEWS 2012 newsletter no 4 BDO is always on the lookout for new talent BDO is currently looking to fill the following positions: For the Accounting & Reporting Business Line For the Audit & Assurance Business Line For the Tax & Legal Services Business Line For the Business Line Special Advisory Services Accountancy (Senior) Manager Accountancy Brussels, Ghent or Roeselare Office (Semi)-Senior Accountancy Brussels & Antwerp Office Auditors Senior - Manager Audit Brussels Office Audit Assistant Namur Office Tax Consultants Supervisor / Manager Individual tax Brussels Office Junior Manager Transfer Pricing Brussels Office Senior Tax Wavre Office Tax Manager Brussels Office Assistant Tax Lasne Office Corporate Finance Supervisor / Manager TS/M&A (M/V) Brussels Office Public Sector Senior/Supervisor Antwerp Office Assistant Antwerp Office Legal Advisors Senior Advisor Legal Antwerp & Ghent Office Corporate Advisor Antwerp Office Would you like more information on these vacancies? Then go to: More info on Contact BDO Antwerpen uitbreidingstraat 66/13 B-2600 Antwerpen T. +32 (0) bdoantwerpen@bdo.be BDO Brussels the Corporate Village, Da Vincilaan 9 - Box E.6, Elsinore Building B-1935 Zaventem T. +32 (0) bdobrussel@bdo.be BDO Gent Axxes Business Park, Guldensporenpark blok K B-9820 Merelbeke T. +32 (0) bdogent@bdo.be BDO Hasselt Prins Bisschopssingel 36/3 B-3500 Hasselt T. +32 (0) bdohasselt@bdo.be BDO Lasne chaussée de Louvain 428 B-1380 Lasne T. +32 (0) bdolasne@bdo.be BDO Liège rue Waucomont 51 B-4651 Battice T. +32 (0) bdobattice@bdo.be BDO Namur-Charleroi Parc Scientifique Crealys, Rue Camille Hubert 1 B-5032 Les Isnes T. +32 (0) bdonamur@bdo.be BDO Roeselare Accent Business Park, Kwadestraat 153/5 B-8800 Roeselare T. +32 (0) bdoroeselare@bdo.be BDO Wavre Ferme des Quatre Sapins, Chaussée de Huy 120A B-1300 Wavre T. +32 (0) bdowavre@bdo.be The information contained in this Newsletter is of an informative and general nature and is not intended as professional advice. Our advisors are at your disposal for more in-depth advice and to take appropriate action. Should you want us to send our Newsletter electronically, please then contact us at newsletter@bdo.be. Our Newsletter can also be consulted at Our Newsletter is also available in Dutch, French or German. R.E. BDO Academy Burg.Ven. CVBA/Soc. Civ. SCRL, Werner Lapage, p/a The Corporate Village, Da Vincilaan 9 Box E6, Elsinor Building 1935 Zaventem BDO Services Burg. Ven. CVBA / Soc. Civ. SCRL, a limited liability company incorporated in Belgium, is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. BDO is the brand name for the BDO network and for each of the BDO Member Firms.