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Connexion

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    Connexion

    Hello to all of you,

    My name is Jason Zeelie, MD of Connexion, I have been reading several of the threads posted by the likes of fatboy. To those of you who when writing threads make sense and know what they are talking about, thank you. It gives good insight into how we can make things better.

    It is not my intention to promote Connexion nor to be an Evangelist of the cause, but to really clarify a few issues. To make it clear if you don't believe me you can call the BTA or companies to double check it if this has indeed occurred.

    Now no matter how I write this I am fully aware that it will be attacked, the bottom line is that you have to be blind not to see that contracting is changing throughout EU, for goodness sake even bank secrecy is going out the window. Why is that? Its all about the various countries needing money, how will that be raised? Through taxes.

    You all know the story of how this all started, a CMC was raided two years ago and by having visual access to all various payments made, the BTA were able to ascertain how some CMC's might operate(it was not CNX). From here they then started to investigate all CMC operating in BE. All CMC operating in BE received letters stating that they operated in BE and that the BTA wanted to know more about their Modus Operandi. Several months and letters went by before CNX took the first step to co-operate with the BTA, at the same time another CMC went into negotiations too. CNX being one of the biggest CMC's in BE was on the list. We have been in negotiations ever since and in December received the ruling of 75/25. it was clear from the onset that contracting in BE was going to be changing. CNX decided that to retain and gain market share they would negotiate with the BTA to get some type of ruling. We took the advice from a tax lawyer in BE who acted on our behalf. Over time this ruling hasn't changed, but certainly the taxes to be paid has been an issue this has had to changed. The BTA over the past month have visited four agencies and end clients. One being a listed company from the UK and the other an international recruitment company.

    To think that the BTA cannot get or will not know your name at some stage via the agency or end client is very short sited. CNX has not and will not give your details to the BTA, this administration knows a lot more than we even gave them credit. The amount of information they have on individuals, is alarming. they had fatboys threads printed out at a meeting even and commented on it before i saw it.

    We have never tried to force individuals to join the solution nor will we. it is simple, we have a solution to offer- it is a ruling that we have, you either join it, where you benefit from the 75/25 ruling along with expenses etc, you pay for the years 2007 and 2008 only for the months you were with us or you take the chance and go via another CMC.

    This is not to scare people or try force people to join CNX, the reality is that once you receive a visit from ISI we are unable to help you. at the same time you will then be fined up to 200% and taxed retrospectively to 2001, but once again this is only if they find you. So far they have recouped 5 million euros from 50 contractors via one client. Ask around and you will find out its closer to home than ever before. The belgian state needs the money and it comes from the individuals and companies working/operating in the country.

    This is not a CNX thing, its global and more so a national issue that the BE state is rectifying. Just look at the Social Security system and the pressure it must be under. So its got nothing to do with the slick Cape Townian accent, but common sense and an understanding of economic pressure that will tell you something has to give- contracting in its normal guise is changing, its a question of either getting with the programme or being one of a few risky individuals. think about it, all CMC no matter how or what they sell will have to conform to this in one way or another in the near future if they want to continue to work in Belgium. The tolerance of accepting the MO's of CMC is gone.

    In the coming days we will be sending out a document answering hopefully all your questions and giving you the way forward. The choice is yours to be made, you either go compliant or take the risk, CNX will not divulge your details, the chances of the ISI and the BTA getting it is 90% from the agencies and end client.

    The Connexion Team is always available should you require assistance or want clarification. I am available too like always.

    Regards


    Jason

    #2
    Originally posted by Connexion Co View Post
    The amount of information they have on individuals, is alarming. they had fatboys threads printed out at a meeting even and commented on it before i saw it.
    That does not surprise me....a simple Google search puts his thread in the top 5. And there are examples of threads on here where the authorities are just fishing for information. It amazes me how people are so open in discussing confidential issues that could put them in a weaker position.

    Comment


      #3
      Precision

      Jason,
      Now that you have decided to join this forum perhaps you can clarify 1 crucial point please?
      Why exactly did the authorities change their mind on the 31.5% initial agreement with you?
      I like many reasonable guys, after getting over the initial shock, realised that this was not such a bad deal after all. We as long-term contractors in BE have had a good stick of it. Now times have changed dramatically and we have to pay up to help the BE economy get back on its feet.
      If they had stuck to the 31.5 they would have recouped a vast sum towards the crisis in BE, and quickly at that without too much fuss.
      You make the calculations, you provide the 'Golden' names together with the details of Total Agency Invoiced Amounts, Total Independent Invoices and Taxable Bases. We get our accountants to adjust the 07 return, then make a return for 08 at 75%. No deductions for expenses, no cheating et voila!

      Now with a potential 55% to be levied on the taxable base I am not sure this will be the case. Many will leave BE without paying. This will prove costly in resources, time and effort to the BTA, not to mention the undeniable harm it will do to the BE future economy. We were enticed here because we have specialist knowledge and experience and to 'force' an exodus en masse would be at their peril.
      Can you not re-negotiate? the posts have moved a number of times already, haven't they?

      I know that you state that you will provide some clarity in due course but I feel that an immediate and honest answer is required from you.

      Finally, I think you must have gathered that the consensus on this 'arrangement' for the the proposed facility on the remaining 20% less spurious commissions to you is a) unacceptable and b) ridiculous!

      You cannot recoup your fine this way. 5% is more than you were getting in the past. You know this. Everybody has negotiated with you. You will only force people away from you and that is not how you will maintain market share.

      A simple arrangement whereby existing bank accounts remain is the simplest and cheapest solution and you continue to pay the 20% there. Those who comply will have no fear of the removal of banking secrecy.

      Comment


        #4
        Originally posted by LetsAvItThen View Post
        Now with a potential 55% to be levied on the taxable base I am not sure this will be the case. Many will leave BE without paying. This will prove costly in resources, time and effort to the BTA, not to mention the undeniable harm it will do to the BE future economy.
        The BE authorities will not care a hoot about this point. If a (in their eyes) rogue non-taxpaying foreigner leaves the country this will be one more job that can be filled by an honest tax-paying Belgium.

        tim

        Comment


          #5
          Originally posted by tim123 View Post
          The BE authorities will not care a hoot about this point. If a (in their eyes) rogue non-taxpaying foreigner leaves the country this will be one more job that can be filled by an honest tax-paying Belgium.

          tim
          This can be true for contractors without a specialization but I am not sure there are so many Belgians with skills in particualr software used by telecom or banking companies. In the company where I work I can guarantee that they would have big problems if all foreign contractors had to quit (just for some period because some Indian company offshore would be happy to sell their services at very low prices, which again will bring no benefit to Belgian citizens and less money to BTA and to ISI as most of the times they work only 6 months and then they send another one which means no taxes at all due to the 183 days rule)
          With these conditions working in Belgium with the same rates is simply not convenient anymore.
          What is not clear in the whole story is why BTA have made this kind of agreement with CNX. It is like BTA trying to give a commercial advantage to a company than to another which is at least illegal. If BTA wanted to make the things the right way they should apply the 70/30 ruling their Dutch neighbors apply. Why BTA have not made a general ruling for all CMCs and just publish it in the www.ruling.be?
          Besides the ruling Connexion has with BTA is till 2010. Can they tell us what happens next? Is BTA planning to make a general ruling by 2010?

          Jason,
          can you please tell us if CNX will pay taxes in Belgium for the remaining 25%? If not, why? isn't it considered that CNX is making business in Belgium and therefore liable to taxes in Belgium? Is it legal that BTA will not ask CNX the taxes on the 25%?

          Comment


            #6
            I see the thread has moved.

            Jason, what is the agreement please ?

            Everytime I ring you there is either a change or the person that i did with has either left or is on holiday.

            Please publish the agreement, this would be better than insuinuating that people are trying to walk away. Far from it, there are many people who have email chains going back to Jan which show they are actively attempting to resolve the situation - the stumbling block is CNX, the messages from yourside are unclear.

            Comment

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