Hungary Considers Reforming Asset Declarations: Proposals for a Transparent System

Published: December 09 2023

The Hungarian government is considering reforming the system of asset declarations to create a more transparent process. The proposals include establishing an independent body to oversee the declarations and granting them access to relevant databases. In addition, the authorities plan to digitize the declarations within a few months, implement a fixed schedule for making declarations, and conduct inspections annually for high-risk cases. The aim is to ensure consistency in sanctions and close any existing loopholes.

The proposed reforms recommend the creation of an independent body responsible for overseeing asset declarations. This body would have the authority to carry out inspections and investigations and would have direct access to all relevant databases. This move is based on international best practices and aims to enhance transparency and accountability.

To streamline the process and make it more efficient, the authorities plan to digitize asset declarations within a period of 3-4 months. This would involve developing a uniform system for recording, managing, and auditing declarations. By implementing digital solutions, the government aims to improve accuracy and accessibility of declaration data.

The reform proposals suggest introducing a fixed schedule for making asset declarations. Individuals would be required to submit their declarations at least once every 4 years. This regular reporting would help ensure that individuals are consistently disclosing their assets and interests.

In cases where there is a higher risk of non-compliance or fraudulent activity, the authorities propose conducting annual inspections. These inspections would help identify any irregularities or discrepancies in the declared assets. By increasing the frequency of inspections for high-risk cases, the government aims to deter individuals from concealing assets or engaging in fraudulent practices.

Another important aspect of the proposed reforms is the need for consistent sanctions and the closure of loopholes. The authorities recognize the importance of enforcing penalties that are proportional to the offense and ensuring that all individuals are held accountable for their declarations. Additionally, the reforms aim to address any existing loopholes in the system that allow for non-compliance or fraudulent activities to go unchecked.

Overall, the proposed reforms for asset declarations in Hungary aim to create a more transparent and accountable system. By establishing an independent body for oversight, digitizing the declarations, implementing a fixed schedule, conducting annual inspections for high-risk cases, and ensuring consistent sanctions, the government hopes to enhance trust and integrity in the process.

What is the purpose of the proposed reforms for asset declarations in Hungary? The purpose of the proposed reforms is to establish a transparent system for asset declarations in Hungary.

How does Hungary's current system of asset declarations compare to other countries? According to Ferenc Bíró, the authority has compared Hungary's system with that of several other countries and found that international best practice involves an independent body overseeing asset declarations and having the power to carry out inspections and investigations, with direct access to all relevant databases. Currently, the Hungarian authorities do not have such access.

What is the proposal regarding digitalizing asset declarations in Hungary? The authority has proposed digitalizing asset declarations within 3-4 months. This would involve implementing a uniform system for the recording, managing, and auditing of declarations.

What types of assets and interests should be included in the declarations? According to Bíró, declarations should include domestic and foreign assets and interests, such as income, goods, real estate, intangible assets, gifts, investments, financial claims, and liabilities.

How frequently should asset declarations be made under the proposed reforms? Under the proposed reforms, asset declarations should be made according to a fixed schedule, at least once every 4 years. However, for high-risk cases, an inspection should be carried out annually.

What measures are proposed to ensure consistent sanctions and close loopholes? Bíró emphasized the need for consistent sanctions and the closing of loopholes in the system, but specific measures were not mentioned in the source article.