Schaerbeek loses long-running tax dispute with VRT

Dutch-speaking television and radio service VRT has won its case against the municipality of Schaerbeek – and will not have to pay €1 million in commercial property tax that the commune had demanded each year.

The dispute dates back to 2008, when Schaerbeek took the public service broadcaster to court.

At that time, Schaerbeek introduced a tax on office space for companies operating in the commune.

But VRT - and its French-speaking counterpart RTBF - located on Boulevard Reyers near Place Meiser, refused to pay, citing a 1960 law that exempts public companies from paying local taxes.

“We continue to think they should pay this tax, and we have good legal arguments for this,” argued Marc Weber, cabinet director for Schaerbeek’s acting mayor, Frédéric Nimal.

But several courts have repeatedly ruled otherwise. In 2012 for example, VRT was vindicated for the first time before the Court of First Instance, and in 2021 before the Court of Appeal.

Finally, the Court of Cassation took up the case, which has now ruled in favour of VRT’s arguments and not those of Schaerbeek.

This latest ruling covers the tax claimed for the years 2008 and 2009, when the dispute first began. The Court of Cassation has yet to rule on the disputed tax for subsequent years, but it seems likely that it will take a similar decision.

According to De Tijd newspaper, between 2008 and 2021, the VRT had saved around €20 million in a reserve pot to pay the outstanding tax, should the broadcaster lose the case.

More than €2 million will now be released as a result. The entire sum could follow if VRT is also right in future decisions on subsequent years.

Weber insists that the court’s decision has no impact on Schaerbeek’s municipal finances - but that the money could nonetheless have been put to very good use.