Tax deduction of alimony paid abroad: a concrete case
This morning, I received Madame S., of African origin and living in Belgium for more than fifteen years. She told me, a little discouraged, that she financially supports her mother who has stayed in Africa for many years, regular assistance intended to meet her vital needs.
However, she was completely unaware that she could tax deduct these sums as alimony paid in fulfillment of a legal obligation towards an ascendant in need. An unfortunately common situation, which deprives many taxpayers of a legitimate tax advantage.
Maître Innocent Twagiramungu’s office was able to find a suitable solution for Mrs. S., while providing her with the serenity and legal security she was looking for. Discover the details of this intervention and the lessons to be learned from it.
A complex situation, a source of concern
Mrs. S. has been helping her mother for many years, with regular transfers intended to cover her current expenses. A gesture of filial solidarity, which she accomplished without realizing that it could entitle her to a tax deduction.
When she became aware of this possibility, Mrs. S. questioned the regularity of her situation. She feared that these transfers of funds abroad, carried out without a precise legal framework, would be perceived as suspicious by the tax administration. The prospect of redress or control particularly worried him.
It is in this context that Mrs. S. requested the help of Maître Twagiramungu. Practicing tax law on a daily basis, he proposed a several-step action plan to regularize the past and secure the future.
Tailor-made support, step by step
Legal analysis of the file
The first step consisted of verifying the applicability of article 104, 1° of the CIR 92, which authorizes the deduction of 80% of alimony paid in execution of a legal obligation, even when the beneficiary resides abroad. Maître Twagiramungu also identified the civil basis of this obligation, article 205 of the Civil Code.
Collecting and organizing evidence
To build a solid file, it was essential to gather all the supporting documents attesting to the reality and regularity of the payments: bank statements, certificates of residence and income of the mother, medical and family documents, etc. establishing her state of need. Meticulous work of collection and classification, essential to convince the administration.
Drafting a detailed tax report
Armed with these elements, Maître Twagiramungu wrote a detailed brief demonstrating that the conditions for the deduction were met. An argument supported by doctrine and case law, aiming to prove the existence of a real maintenance obligation, and not a simple generosity.
Constructive dialogue with the administration
This memorandum was then sent to the tax administration, accompanied by a request for regularization for previous financial years still open. A positive exchange followed, at the end of which the tax authorities recognized the right to deduct the sums paid.
Preventive advice
For the future, Maître Twagiramungu recommended that Mrs. S. put in place rigorous annual monitoring of payments, as well as a method of secure storage of supporting documents. An essential precaution to perpetuate the tax advantage and avoid any risk of subsequent challenges.
The relief of a clarified situation
At the end of Master Twagiramungu’s intervention, Mrs. S. expressed immense relief. His fears of seeing his aid treated as a tax anomaly have dissipated. Today she feels strengthened in her gesture of solidarity and reassured about her situation vis-à-vis the administration.
The discovery of the deductibility of alimony, even paid abroad, was a real surprise for her. A happy surprise, which rewards years of support and significantly reduces taxes.
Remember: if you financially help a loved one in need, wherever they live, do not hesitate to find out about the tax deduction arrangements. The sums paid are often deductible, subject to respecting certain conditions and being able to justify them. In the event of difficulty with the administration, the creation of a solid file and the assistance of a specialized lawyer will be your best assets.
You too can optimize your tax situation!
Maître Twagiramungu’s office, located in Brussels, puts its tax expertise at the service of individuals and families in the capital and its outskirts. Whether you are faced with a problem of alimony, deduction or rectification, we provide you with a tailor-made analysis and concrete solutions.
A rigorous, attentive and responsive lawyer, Maître Twagiramungu is your privileged partner to secure your tax situation and assert your rights. Contact us today to benefit from initial advice and calmly consider what comes next!