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Govt tax amnesty draws HUF 15bn from offshore accounts by end of Sept

The government’s tax amnesty on assets repatriated from offshore accounts drew HUF 15.4bn back to Hungary since it came into effect at the start of this year until the end of September, the daily newspaper Magyar Nemzet reported on Tuesday, based on data from the National Tax and Customs Administration (NAV).

The newspaper estimated the value on the basis of information that the tax authority has collected more than HUF 1.5bn in taxes on the repatriated asset, which are subject to a one-off 10% levy.

Legislation passed late last year has offered private individuals the option to legalise their wealth/income held abroad at a preferential 10% tax and without any possible criminal consequences until the end of 2011.

Magyar Nemzet reported that the process started only slowly, with tax proceeds from assets repatriation from off-shore accounts reaching only HUF 721m until the end of July and more than doubling in August-September.

Actual repatriation started later as the financial market watchdog designated the banks which could partake in the process in February, and the designated banks had made the necessary steps to accept the repatriated offshore monies only gradually, between March and September, the daily noted.