Hungary Cracks the Whip on Tax Evaders

January 16, 2013 Taxation in Hungary

HungaryBUDAPEST – Hungary will soon root out hidden assets and undeclared incomes stashed away by national taxpayers in bank accounts around the world.

At a press conference held in Budapest on January 16th the Prime Minister of Hungary Janos Lazar announced that the country will impose a tax of 35 percent on incomes and capitals which have been hidden away in overseas bank accounts by national taxpayers.

According to the Prime Minister, Hungarian taxpayers are currently hiding as much as EUR 6.5 billion in offshore bank accounts, with approximately half of the undeclared total being held in Switzerland.

For the last two years the government has allowed taxpayers to come forward and willingly declare their hidden assets in exchange for paying a lowered tax obligation of only 10 percent of their hidden capitals, but now, but the Prime Minister has now said that there “has been ample time”.

As a first step towards cracking down on the hidden funds, the government will soon enter into talks with Switzerland regarding disclosure of the bank account details and information of all Hungarian taxpayers with assets in Switzerland.

He added that following the negotiations with Switzerland, Hungary will engage in talks with other popular offshore centres such as Cyprus.

Photo by zsoolt