Working in Belgium via Connexion

[fatboyContractor]

Hi,
send me a PM with your email address. I received this letter from BTA 1 year ago with a lot of inquiries about connexion.
regards

<mod note>Have upgraded your account to allow use of PM system. New users who want to use the PM system need to contact the administrator using the contact form</mod note>

Pepso I don`t appear to have access for a PM can you try to PM mee, admi stated facility has been added.

<admin note>Sorry, try now...</admin note>

[contractor34u]

Management company busted

I heard that the BTA is investigating around 20 management companies. They went to one based in Overijse & found some confidential data on one laptop (apparently all the details of the scheme: names of contractors, records of the banking transfers not only to their belgium or english bank accounts but also to their offshore accounts.... this management company had the bright idea to keep all this data on the same laptop!).
One former contractor of this genius company has already been contacted by the BTA that offered him a deal: pay immediately taxes he should have had + 10% penalty or undergo a full investigation with the risk of a 307% penalty on what they find out.

[fatboyContractor]

I heard that the BTA is investigating around 20 management companies. They went to one based in Overijse & found some confidential data on one laptop (apparently all the details of the scheme: names of contractors, records of the banking transfers not only to their belgium or english bank accounts but also to their offshore accounts.... this management company had the bright idea to keep all this data on the same laptop!).
One former contractor of this genius company has already been contacted by the BTA that offered him a deal: pay immediately taxes he should have had + 10% penalty or undergo a full investigation with the risk of a 307% penalty on what they find out.

Was that a company starting with an A with a Z in there somewhere ? Run by a Scottish person ?

[Rantor]

I heard that the BTA is investigating around 20 management companies. They went to one based in Overijse & found some confidential data on one laptop (apparently all the details of the scheme: names of contractors, records of the banking transfers not only to their belgium or english bank accounts but also to their offshore accounts.... this management company had the bright idea to keep all this data on the same laptop!).
One former contractor of this genius company has already been contacted by the BTA that offered him a deal: pay immediately taxes he should have had + 10% penalty or undergo a full investigation with the risk of a 307% penalty on what they find out.

Overijse company run by British guys perchance?

I have heard similar things regarding the mgmt companies from two other contractors but, when pressed, both had nfi where the info really comes from. I'm not saying it ain't true, but how would anyone know if 20 companies were under investigation?

Equally, I'd be surprised if there wasn't some renewal of interest in this type of thing as the government are waking up to how skint they are likely to be for the next few years.

[Rantor]

FBC - good Id, probably fits loads of us on here

I don't really want to say too much on an open forum, but I've looked into this a bit more and it seems that this connexions deal is going ahead pretty much as you initially described. The circumstances are absolutely bizzare and my initial suspicions about this prompted me to join up the dots - I'll send a PM tonight.

I'm interested because I used a different type of mgmt co until 2007 though I tried to keep my dealings in the lighter grey-white end of the spectrum so I would be well hacked off I got roped into a 'golden list' or given a random megafine at some point in the future.

If you live here, I'm convinced a ltd co is the way to structure things in the long term - the expense regime works out well (depending on family circumstaces though.)

[ContractorGR]

I think things may be more serious than one imagines.

I spoke to the MD at Connexion, I have been with them for some time - he told me that the previous MD had received letters from the BTA asking for appointments etc to discuss things and those letters were binned. This was 24 months ago. Three letters were binned in total then the BTA turned up. he claims other management co's have done likewise. i.e binned them.

Lux - I lived there for ten years - will do anything the BTA ask - poodles - for so long as it doesn't involve any Luxo's - dodgy dealing will be tolerated - to a point. Thsi doesn't involve banking secrecy and even there they will open the books in extreme cases. MD confirmed BTA have been to Lux.

They, Connexion then held their hands up - negotiations have been going on since then. This is a MADOFF style thing as they kept taking people on knowing that the game was up and or the net was closing.

I asked the MD about the new 75% - 25% slpit and how this can be legal, appranetly he has been in meetings where it has been agreed and as a result emails/minutes have gone out to the BTA with REYNDERS in copy (Belgian Finance minister), he knows about the scheme and has ok'ed it.

He also said Reynders knows the market in tax to Belgium is worth Euro 500 million form the contractors and they want some of it or all of it in fact. Currently they claim to get nothing which is tosh - most people pay on at least 40%.

So the upshot is that on the new method I can claim 25% expenses on my gross with Reynders/BTA approval, my neighbour who is also an independant but happens to be a dentist cannot - welcome to Belgium. WTF ! Seems that there are many 'local ' schemes around like this depending on the profession or area of expertise. For all said and done there are 10k European fonctionnaires who pay nothing or as close to nothing as possible - no communal taxes, no basic tax. Some communes like Wezeembeek actually discourage those people from living there because they can't get money out them to finance the upkeep of their ommune. But those guys are untouchable..

As to the future - one pays up via Boerava - on the following scheme.

Take Gross for 2007 remove 25% allowance. then take the % already put through belgium - so say you put through 40% - this means you are still liable on 35% of the money. This is then taxed at 31.5% total - ALL PAID UP and DONE. Boearva splits the moeny via the tax and socilal security dept.

Catch - Boerava takes 2.5% of the amount calculated as owed as his fee.

Do the same for 2008 and then you are clean. For me its 25k

I guess from what I hear the BTA will do the rounds of all management co's it just depends on if you think you will hang around here long enough to get caught.

I hear that people at Euroclear via Connexion are already being investigated and that some who didn't want to play now have Euro 100K plus bills to pay - which can be life ruining depending on your circumstances.

As for the future if you stay with Conenxion the 25% goes to a private trust or MPTA agreed and accepted by the BTA - you can draw on that with issue s or worries. Of course there are the usual silly fees and set up costs these people charge - the whole wold has become a commission salesman.

The rest, the 75% you pay the full whack, again depends on family circumstances but you will lose 50% of that, possibly a little more, possibly less, depending on what you put through.

The total net retention worst case should be 57% after all costs, including the connexion fees.

Hope this helps.

Hi fatboyContractor,
Same situation here. Working for 5 years in Belgium.
What do you guys plan to do?
Are you going to pay the amount to that guy?
Will you continue using Connexion?

My personal impression is that Connexion has been cought by BTA and they got fined. In order to lower the fine they came to an agreement with BTA and they have given all our names promising to BTA that we will pay the taxe difference till 75% of initial income

I don't really understand what kind of service are they offering with a 75-25 splitting.....e.g. if you have a rate of 450 euros per day you get some 9000 euros per month which means pay taxes on 6750 and save 35% on 2250 which is 787 euros - 450 (of their fee) = 337 of saving per month
Does it make any sense using their services??
In my case I pay only taxes as I pay Social Security in my Home Country (providing an E101 document) so it is about 35%
Situation is really dodgy....
We have not paid taxes for 2007 yet (it will be around July I think) so how can we already pay to this guy the money for 2007 and 2008?
Is there any deadline for applying to this ruling?

[fatboyContractor]

Itecs

Some pople in my office were told today that ITECS are starting to get difficult now. They are not ahpp about paying split money.

Make of that what you will.

Fatboy

[ContractorGR]

So do you plan to pay for 2007 and 2008?
What is the role of that ULB professor?
How can we know he will give the money to BTA and why we don't receive a bill from BTA directly?
Did you say you were planning to contact him?

Some pople in my office were told today that ITECS are starting to get difficult now. They are not ahpp about paying split money.

Make of that what you will.

Fatboy

[contractor34u]

Management Co in Overijse

Was that a company starting with an A with a Z in there somewhere ? Run by a Scottish person ?

That's the one.

[contractor34u]

Read comments in bold

Hi fatboyContractor,
Same situation here. Working for 5 years in Belgium.
What do you guys plan to do? Nothing apart from moving away from Connexion
Are you going to pay the amount to that guy? Nope
Will you continue using Connexion? No. Connexion is not the only on the market

My personal impression is that Connexion has been cought by BTA and they got fined. In order to lower the fine they came to an agreement with BTA and they have given all our names promising to BTA that we will pay the taxe difference till 75% of initial income.
I don't really understand what kind of service are they offering with a 75-25 splitting.....e.g. if you have a rate of 450 euros per day you get some 9000 euros per month which means pay taxes on 6750 and save 35% on 2250 which is 787 euros - 450 (of their fee) = 337 of saving per month
Does it make any sense using their services??
I doubt it. You can go & talk to another management company & see what they offer.
In my case I pay only taxes as I pay Social Security in my Home Country (providing an E101 document) so it is about 35%
Situation is really dodgy....
We have not paid taxes for 2007 yet (it will be around July I think) so how can we already pay to this guy the money for 2007 and 2008?
Is there any deadline for applying to this ruling? I dont know but Connexion told me that they need to provide the list of their current contractors before 1st March 09.

No one has tried to negotiate by the way with Connexion about this split? or at least about the sum requested for 2007 & 2008?