Failure to report a company car or filing an incomplete or inaccurate statement in that regard: the NOSS can reduce the sanction it imposes

Since 23 November 2011, the fixed indemnity which has to be paid by the employer who fails to report a company car, or who reported such car in an incomplete or inaccurate manner, can be reduced by 50% or 100% by the NOSS when the employer proves the existence of exceptional circumstances. This new decision is not linked to the reformation of the tax measures for company cars, as recently announced by the new government. We will report on these measures shortly.

When an employee also uses a company car for reasons that are not strictly professional, the employer must pay a solidarity contribution, the amount of which depends on the car's rate of CO2 emissions.

The employer is obliged to report quarterly the benefit of each company car that is used for private purposes.

When the employer fails to report one or more company cars or makes false statements in order to evade payment of the solidarity contributions, he is in principal liable to pay a fixed indemnity of twice the evaded contributions.

In practice, the NOSS may grant the employer a partial exemption from this sanction.

This possibility has now been confirmed by a Royal Decree. Since 23 November, the NOSS may reduce the amount of the fixed indemnity by maximum 50%, provided that all contributions due have been paid, if the employer proves exceptional circumstances, which justify the failure to file a statement or the incomplete or inaccurate nature of a statement that was filed. This reduction may even be 100% when the Management Committee of the NOSS recognizes, with a well explained decision, that legitimate urgent reasons exceptionally justify such a reduction.