Working in Belgium via Connexion

[ContractorGR]

Read comments in bold


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

I don't think a negotiation is possible
The question is how risky is to not pay and just move with some other Management Co
Apparently everything started with Limoga where Connexion was not registered. So they got a big fine.....
Anyone has already talked to that Accountant/Professor if the payments can be done in 5-6 installements in a year?

[A Good Man]

Get out of Jail Card

Below is part of an email from Connexion:

Q. "I have a contract with you that states the original proportions from those outlined in a mail from R*****h on Friday, are you intending to abide by that contract or is it worthless?"


A. "We are trying to get contractors to abide by the new ruling. Those that cannot or refuse to abide or adopt this new solution need to find a new management company going forward. We are fully aware of the future of Belgian contracting."


This was my 'Get out of Jail Card'. As soon as the monies owed were in my account I terminated the contract with immediate effect. I thought they'd be snotty about it, but they weren't. I had a similar experience with Itecs two years ago who just 'blanked' me when I asked for proof of payment of taxes - they also retained €3,000 of mine, for no reason whatsoever. Cohen, the then MD of Itecs is the biggest crook in town! Once bitten, twice shy! My thought process was, if you're in the brown-stuff, stop digging!

If was intending to remain in Belgium for any length of time I'd set up my own company, that way I'd be in complete control and have time to recoup the set-up costs. As I am intending to stick to my original plan and leave in the near future, I am looking at another solution.

[contractor34u]

News from Connexion

I was told (by Connexion) that it should be possible to deal directly with the BTA, without going through this lawyer.
However, I'm not aware of any deadline to achieve this.
I see risks in both tactics.

I don't know about paying in several installments but I guess it should be possible.

[ContractorGR]

I was told (by Connexion) that it should be possible to deal directly with the BTA, without going through this lawyer.
However, I'm not aware of any deadline to achieve this.
I see risks in both tactics.

I know...the situation is not good. I am afraid that we are part of the deal Connexion had with BTA in order to low their fine
Negotiate directly with BTA is also very risky....
I will try to ask some tax advisors what they think (someone I trust)
I am not sure they can really fine us.....We are paying taxes for what we invoice. The rest is going to a country where according to local legislation taxes are not needed. Connexion didn't register to Limoga and got fined. End of story. Now they are trying to lower the fine promissing to BTA that their consultants will pay taxes on 75% for 2007 and 2008 income
I am not sure BTA expects a precise amount from this operation. It can be a 'Better than nothing' thing. Whatever we get is good, anyway those money were lost...of course can also be that Connexion has given a full list with names of their clients....

[fatboyContractor]

Hi fatboyContractor,

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?

Yes agreed except that in fact the savings will be on 50% of the 2250 you quote. at that salary you wil be paying at least 50% tax and combined social security, so the saving is higher.

I also agree that they have passed a list of names - although this might not be due to a fine from the BTA - remeber that the BTA operate in Belgium and there is nothing illegal in splitting money for people, it is illegal if the recipient does not declare it - so in this sense Connexion is exonerated, I do believe however they have been "had" by the Lux authorities concerning other matters - namely local social security and the split scheme they may operated for themselves, something completelydifferent from the contractor issue..

The only way to save their company is to come up with some scheme to sell to people, and remember even at the saving you quote if you were talking to a tax advisor on about a totally unrelated situation, and he could save you 5% or so then people would be jumping up and down about good that was.

[fatboyContractor]

I don't think a negotiation is possible
The question is how risky is to not pay and just move with some other Management Co
Apparently everything started with Limoga where Connexion was not registered. So they got a big fine.....
Anyone has already talked to that Accountant/Professor if the payments can be done in 5-6 installements in a year?

Hi

Thats interesting news, Limosa was down to the individual contractor though no ?

I will see the prof shortly - i was told 4 to months is the max they will wait, but when you think 208 declarations have not yet been made that shoudl mean those can wait to much later.

[fatboyContractor]

I was told (by Connexion) that it should be possible to deal directly with the BTA, without going through this lawyer.
However, I'm not aware of any deadline to achieve this.
I see risks in both tactics.

I don't know about paying in several installments but I guess it should be possible.

Did they say how the approach should be achived, via one's normal accountant ?

How would you know the same deal would stand true if you went direct to the BAT for example?

If this is true then it may also be true that dumping Connexion for the future is alos possible and getting a valid 75/25 deal.

[ContractorGR]

Sorry Limosa and not Limoga
That is what I was told this morning from Connexion (not high management though)

Hi

Thats interesting news, Limosa was down to the individual contractor though no ?

I will see the prof shortly - i was told 4 to months is the max they will wait, but when you think 208 declarations have not yet been made that shoudl mean those can wait to much later.

[Codejock]

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

Careful Nigel, ITECS have never been a cast-iron solution. I was with them, briefly many years ago and am still suffering some IR fall-out from their incompetence.

[contractor34u]

My comments in bold

I know...the situation is not good. I am afraid that we are part of the deal Connexion had with BTA in order to low their fine
Negotiate directly with BTA is also very risky....
I will try to ask some tax advisors what they think (someone I trust)
I am not sure they can really fine us.....they could (not to say they will) if they prove tax evasion. One way is purely maths: your declared income can not match your cost of living (you can not justify how you paid for this or that). Another one is the material evidence of the existence of a bank account with regular transfers of funds from Connexion. That's what the BTA found out on the laptop of A--- mgt co. Of course, now, if you're known for having worked with Connexion, surely the BTA will have from the beginning strong suspicion about the honesty of your declaration (
We are paying taxes for what we invoice. The rest is going to a country where according to local legislation taxes are not needed. Connexion didn't register to Limoga and got fined.Are you sure of that? End of story. Now they are trying to lower the fine promissing to BTA that their consultants will pay taxes on 75% for 2007 and 2008 income
I am not sure BTA expects a precise amount from this operation. It can be a 'Better than nothing' thing. Whatever we get is good, anyway those money were lost...of course can also be that Connexion has given a full list with names of their clients....Connexion has not been compelled to do so for past fiscal years, writes the BTA.

I believe the BTA is gathering some data/statistics about real contractors rate/income. So that in the future, when running the numbers, they could easily spot amoung the contrators who declare significantly lower than average.
So I think one who used to work with Connexion should be prepared to be investigated in the coming years.
I wonder also if, by leaving Connexion after end 2008, that move will not attract even more attention from the BTA. They could wonder why (if you're clean) you ran away from them.