“Tax Reform Proposal Threatens Access to Legal Protection Insurance: Concerns Raised by Avocats.be and Bar Organizations”

2023-05-25 16:34:00

This abolition is included in the tax reform proposal made by the Minister of Finance Vincent Van Peteghem (CD&V). In the Justice Committee, Mathieu Bihet relayed the concern of Avocats.be on this subject, mentioned in an open letter published on their website at the end of April. “Removing a tax advantage four years following creating it will cause a decrease in the number of subscribers and risk that only high-risk consumers will subscribe to the product, which will threaten its very existence.”, wrote the Order of French-speaking and German-speaking Bars.

The amount of this reduction is capped and partially covers the amount of the taxpayer’s expense”, expressed Mathieu Bihet. “Between 2019 and 2021, subscriptions to this type of insurance tripled. This law facilitates access to justice. To remove this reduction would be to regress in terms of fundamental rights of citizens such as the guarantee of access to justice.”

Neupré – Mathieu Bihet (MR): Mathieu Bihet, former president of young MR becomes deputy with the departure of Kattrin Jaddin. In Neupre on Tuesday August 23, 2022 (JC Guillaume) ©JC Guillaume

The Secretary of State for the Budget Alexia Bertrand (Open Vld), responding on behalf of the Minister of Justice Vincent Van Quickenborne absent for paternity leave, specified that nothing had yet been decided in kern (restricted Council of Ministers). “This proposal is one of the proposals and an element of a larger plan. Nothing has been decided. There must be agreement on the whole plan in order to comment on the individual proposals.

State Secretary for Budget Alexia Bertrand pictured during a plenary session of the Chamber at the Federal Parliament in Brussels on Wednesday 17 May 2023. BELGA PHOTO LAURIE DIEFFEMBACQ

The minister said, however,aware of the risk” to see a reduction in access to legal protection insurance for all. The measure had been implemented under the previous legislature by the former Minister of Justice, Koen Geens (CD&V). “To better assess the impact, I have asked my colleague, Minister of Finance, to find out who takes out such a policy, what income category these people are in and whether they already had a policy before the introduction of the new system.

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You have to consult the bars. The latter expressed themselves in the forum of lawyers.be to be moved by this step back

In concrete terms, insurers can offer products giving the right to a tax advantage of up to 124 euros (tax reduction of 40% on the insurance premium capped at 310 euros), if this contract provides for a certain minimum coverage. The policy to benefit from the tax reduction must cover a wide range of risks: liability, criminal law, tax law, administrative law, labor law, contract and consumer law (including construction disputes), estates, gifts and wills, divorce and family law.

This proposal must come out of the tax reform” concluded Mathieu Bihet. “The partners have been consulted, but the bars must be consulted. The latter expressed themselves in the forum of lawyers.be to be moved by this step back. At the time, Minister Geens welcomed this facilitation of access to justice. Legal proceedings are expensive. This proposal must come out, because it is going back on a provision that makes it easier to access this fundamental right of justice. The very thin tax deductibility that is granted here will not put the state budget at risk.”

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