Banking official proposes fund repatriation deal

Budapest, November 26 (MTI) – The chairman of Hungary’s bank association has proposed that wealth expatriated from Hungary over the years should be lured back home by legalisation and an attractive tax offer, the national daily Magyar Nemzet said on Friday.

Tamas Erdei estimates that the move could bring in billions of euros for the central budget, which could replace revenue planned from a new sectoral tax the government has levied on the banking, energy, telecoms and retail sectors, by 2013 at the latest.

    Erdei said an advantageous tax offer requiring a one-off tax payment only could convince individuals, companies and off-shore businesses to repatriate their funds “under the appropriate circumstances”. The proposal could appeal to businesses, as the costs of accessing their funds abroad are high, Erdei told the paper.

    He proposed that the Italian and German examples should be followed, and the banking association and the government should draw up the relevant legislation jointly, including guarantees that the tax authorities would not investigate the origins of the repatriated funds in the future.