Working in Belgium via Connexion

[ContractorGR]

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 don't pay social security in Belgium as I provide an E101 document. I pay social security in another EU country


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.

What I mean is that for 300 euros a month I don;t know if you still need to use a moanagement company and face again any risk in the future....the ruling is only till 2010...then who knows??

[contractor34u]

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.

They did not say. I suppose you don't necessarily need an accountant. It's between you & the BTA. You "just" need to contact them & offer to pay the shortfall. What Connexion said is that, should you wish to continue with another mgt co, you must be sure that it is 100% "compliant" (meaning what exactly?! I don't know; I guess it means it must be in order to with the BTA & has agreed to an acceptable split by the BTA).

[fatboyContractor]

They did not say. I suppose you don't necessarily need an accountant. It's between you & the BTA. You "just" need to contact them & offer to pay the shortfall. What Connexion said is that, should you wish to continue with another mgt co, you must be sure that it is 100% "compliant" (meaning what exactly?! I don't know; I guess it means it must be in order to with the BTA & has agreed to an acceptable split by the BTA).

Ok what I am slo now hearing is that one of the major accountants in central Brussels is loking to contact the lawyer and the BTA and perhaps bulk everyone together ?

Take it from me , if those guys at the BTA can get something for not doing so much they will be happy.

I also agree that they are surely collating rates from various sources - this of course will be dificut for them to understand when you see that people like Cap gemini put people in at loads and pay the contractor peanuts, the profit margin for them is huge - on the face of it will look like the contractor is splitting but he won`t ge. There are a few French co`s like that.

[fatboyContractor]

What I mean is that for 300 euros a month I don;t know if you still need to use a moanagement company and face again any risk in the future....the ruling is only till 2010...then who knows??

Absolutely agree, thats why the whole thing so is so flakey. If they want to make a new law of 75/25 for expat contractors - like the 30% deal in Holland -just put it on the statute books and be done with it and stop the cloak and dagger stuff.

[Pepso]

I do not think that dealing directly with the BTA is a good idea. In that case they could not consider a 75/25 split, which is not foreseen by the belgian law. My intention is to pay the lump sum calculated and then to leave connexion. It is like paying 'protection money' to mafia.
BTA has already our names! The BTA knows who was on the payroll of connexion (I have been already questioned in the past) and they can trace easily the payment from ICC.

[fatboyContractor]

I do not think that dealing directly with the BTA is a good idea. In that case they could not consider a 75/25 split, which is not foreseen by the belgian law. My intention is to pay the lump sum calculated and then to leave connexion. It is like paying 'protection money' to mafia.
BTA has already our names! The BTA knows who was on the payroll of connexion (I have been already questioned in the past) and they can trace easily the payment from ICC.

Hi Pepso,

yes I agree at the moment there would not be much to stand oin if you dealt direct with them, they could very asily ignore any verbal 75/25 split , there is after all nothing from them on paper about. Just a load of waffle about Connexion being compliant.

The whole things is very very flakey, other groups in Belgium could get annoyed if they discovered that IT contractors had an unfair tax advantage over them and the whole 75/25 could just be a wheeze to get people to come in and pay some back taxes. It could be withdrawn in an instant. It is only until 2010 anyway which is not so far off.

[A Good Man]

Vat threshold & Connexion

Guys,

The Belgian Vatman owes me €1,500. I thought that once the amount breaks the threshold of €1,000 that the rebate would be paid automatically. Not so. My accountant advises that the threshold is €3,000, but you are perfectly entitled to ask for the rebate if it is below this amount. However, if you do be prepared for a vat and tax inspection. Don't rock the boat.

Since when have Connexion been entitled to vet other CMC's? The extract from their mail I posted earlier clearly states that I can find another CMC without notification.

[fatboyContractor]

Guys,

The Belgian Vatman owes me €1,500. I thought that once the amount breaks the threshold of €1,000 that the rebate would be paid automatically. Not so. My accountant advises that the threshold is €3,000, but you are perfectly entitled to ask for the rebate if it is below this amount. However, if you do be prepared for a vat and tax inspection. Don't rock the boat.

Since when have Connexion been entitled to vet other CMC's? The extract from their mail I posted earlier clearly states that I can find another CMC without notification.

Connexion know that people are stuck for choice, they understand the contractor`s dilema - if you jump you might get caught by the BTA later , or you might get away with it - they are trying to add pressure to people by these vague threats and in so doing so retain some business which in turn will keep them afloat.

[ContractorGR]

Latest News from one of Connexion Accountants I had a chat with on Friday
The money will not be paid through Christophe Boerave but Connexion will calculate the amount to be paid and through your accountant you will make a new tax declaration (adjusted) declaring up to 75%. Taxes will be paid on this amount with the same percentage you are supposed to pay according to your family status etc. The 31.5% is not true any more....can reach 50-55% !!!!! In our case as the additional amount falls in the >33k I think the taxes will be 50-55%. Which is much worse that what we thought.....
This means what WE ourselves will make a correction to our tax declaration of 2007 and in the 2008 tax declaration (Octoer 2009??) we will declare the 75% of the 2008 income
What do think of it? It may look that the BTA is not expecting exact number of corrected 2007 and 2008 tax declarations (it can just be a promiss Connexion made in order to obtain the 'complient agency' certificate)

According to the same accountant they have not given any list to BTA. They have to provide a list in March with the contractors currently with Connexion.
I don't know... I am seriously considering to leave Belgium. It is not anymore convenient working here. I am not sure changing Management Company will help.

What I don't understand is that everybody knows what management companies do. It is not something new. So or there is a 'hole' in the legislation and they can not do much with offshore companies or not.
I know 100s of contractors invoicing every month to Jersey or Island of Mann.
Do you want to tell me that BTA or any other TA in other countries do not know what this means??
I still believe that the issue is between Connexion and BTA
Connexion in order to not be banned from doing business in Belgium has come to this agreement to threaten their consultant to pay for 2007 and 2008.... after all with the 75/25 split they still get their 5% so nothing changes for them!!!!

How many of us here in the forum are in the same situation?
What do you guys plan to do? Make the correction of the 2007/2008 tax declarations? Change ManCo without paying? Leave Belgium?
I understand that this can be different from case to case but if we can discuss what is the best thing to do would be helpful to all of us

[fatboyContractor]

Latest News from one of Connexion Accountants I had a chat with on Friday
The money will not be paid through Christophe Boerave but Connexion will calculate the amount to be paid and through your accountant you will make a new tax declaration (adjusted) declaring up to 75%. Taxes will be paid on this amount with the same percentage you are supposed to pay according to your family status etc. The 31.5% is not true any more....can reach 50-55% !!!!! In our case as the additional amount falls in the >33k I think the taxes will be 50-55%. Which is much worse that what we thought.....
This means what WE ourselves will make a correction to our tax declaration of 2007 and in the 2008 tax declaration (Octoer 2009??) we will declare the 75% of the 2008 income
What do think of it? It may look that the BTA is not expecting exact number of corrected 2007 and 2008 tax declarations (it can just be a promiss Connexion made in order to obtain the 'complient agency' certificate)

According to the same accountant they have not given any list to BTA. They have to provide a list in March with the contractors currently with Connexion.
I don't know... I am seriously considering to leave Belgium. It is not anymore convenient working here. I am not sure changing Management Company will help.

What I don't understand is that everybody knows what management companies do. It is not something new. So or there is a 'hole' in the legislation and they can not do much with offshore companies or not.
I know 100s of contractors invoicing every month to Jersey or Island of Mann.
Do you want to tell me that BTA or any other TA in other countries do not know what this means??
I still believe that the issue is between Connexion and BTA
Connexion in order to not be banned from doing business in Belgium has come to this agreement to threaten their consultant to pay for 2007 and 2008.... after all with the 75/25 split they still get their 5% so nothing changes for them!!!!

How many of us here in the forum are in the same situation?
What do you guys plan to do? Make the correction of the 2007/2008 tax declarations? Change ManCo without paying? Leave Belgium?
I understand that this can be different from case to case but if we can discuss what is the best thing to do would be helpful to all of us

What the f$$K ! This is now getting very serious. I never trusted Connexion for one seond they are a bunch of so$s just trying to save their own skin and will take anyone else down with them. If this is the sort of game they want to play then I think they will find there a few hard balls around in the contracting fraternity who will play similar with them.


Loads of questions:

When you say Connexion accountant you mean your normal accountant who handles a lot of Connexion people?

First things is I am ot having connexion calculate anything for me, they are not briefed to so, are not qualified to do and should simply not be trusted to get it right - thats what I pay a registered Belgian accountant for.

Could have been a promise could have ben anything but as we said all along how could it be that such a low figure was justified, it always stank as does the 75% figure - they simply cannot offer that as it is NOT LAW FOR GODS SAKE !!!!!!!

Guess they have all known for ages, about splits and offshore etc, but now they need the money because of the crisis they say it cannot go on - what will happpen in effect is that some people will simply go back to Blighty or from whence they came and others will get caught, I suppose the next news will be that in fact there is a fine as well !

I think changing Manco simply will not work they will have or they will get the names and if you are around you will have to pay.

None of these clowns are very clever though - Imagine you owe 40k - you can quite simply leave Belgium go and sit on the beach somewhere for a year live off 20K ,what till the work situation picks up and then start contracting again in the UK or anywhere but here and they won`t get a dime. They had much better play softly softly at lower % in order to get people to cooperate.

In anycase very bad news.