The Federal Public Service Finance in Belgium has a payment compliance strategy designed to offer help and guidance to taxpayers facing financial hardship. This specific target group, the selection of which is based upon administrative data on their historic compliance behaviour, get special attention from the Administration for Collection and Debt Recovery with pro-active and targeted communications in order to build trust and raise compliance.
Since 2018 personalised tax assessments are sent to taxpayers with a history of payment problems, which includes a dedicated message for this target group. Using simple and understandable language, taxpayers are offered the opportunity to pay their liabilities by instalments if this suits their current situation. By addressing these taxpayers with personalised information and outlining the different payment options, the Belgian Tax Administration assists taxpayers in need and at the same time avoids debt situations for this target group.
This approach of personalised, pro-active and preventive communication is a real success. Taxpayers warmly welcome these targeted messages and this prompts them to enter into instalment arrangements before the due date (15% raise). Furthermore, the Tax Administration sees a significant decline in the number of arrears within this target group.
During the covid19-crisis, the Belgian Tax Administration contacted this group of taxpayers with a history of payment problems by telephone, in order to check whether they were able to pay their Personal Income Tax and if not, what alternative options they have. This project, called REACHOUT, got very positive responses from the taxpayers involved and raised compliance by providing a helping hand.
Trust & Compliance
