December 21, 2003	Sunday	Shawwal 26, 1424

BRUSSELS, Dec 20: Belgium’s Senate has passed a controversial tax amnesty bill despite criticism from one of the country’s highest courts about how it discriminates against some investors who come clean on undeclared funds.

The Senate late on Friday voted 40 in favour and 21 against the bill, which has been revised several times by the government in the face of strong criticism. The bill is to go to the Senate for a final vote before Christmas.

The Senate was expected to approve the bill as the coalition government of pro-business liberals and socialists has a majority both there and in the lower Chamber of Deputies, which has also passed the bill.

The government, anxious to have it become law by January, wants to lure its citizens into declaring billions of euros of undeclared funds by offering preferential tax rates and strict confidentiality.

It hopes to raise 850 million euros in taxes from the measure.

The Council of State has said the regional governments ought to have the chance to adjust their laws to accommodate the bill’s provisions concerning inheritance tax.

The council, whose advice is not binding on the government, also said the bill discriminated against those who opted to keep funds abroad after paying the tax because it denied them anonymity.

An official at the court confirmed the advice was handed down on Wednesday but declined to discuss its contents.

The government has promoted the bill as a last chance for people to come clean about undeclared savings before EU states start sharing details of foreign bank accounts in 2005.

Germany, Italy and Ireland have launched similar amnesties.

Belgians are estimated by the central bank to hold 161 billion euros in undeclared funds as they face a top rate of income tax of 50 per cent, one of the highest in Europe.

A big part of those funds are held in Luxembourg, considered a tax haven because it has yet to impose the withholding tax on savings.

Luxembourg banks have complained to the European Commission about the bill, arguing that it breaks EU law.—Reuters