subcontracting part of salary subcontracting part of salary
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  1. #1

    Nervous Newbie


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    Default subcontracting part of salary

    Hi,

    I'm a contractor working for an IT company in Brussels and I have a Belgian freelance contract.

    My accountant told me, in order to pay less taxes, I could subcontract about 30-40% from my salary if I find another person from my home country who is also having a freelancing contract and willing to invoice me. This is actually a fake subcontracting because the other person never worked for the project I'm working at, but the accountant said I could invent something each month, some module at which I worked at and the subcontractor helped.

    He said he did this for several persons(about 20-30 persons) and I know he has a very good reputation throughout the forums and people go to him.

    My wife also agreed to do this and we found a person willing to subcontract from our country, but I just don't know if I should proceed with this. She is very decided to go on with this and I really don't have anyone else to discuss it about because it's my word against the accountant's word(whom knows and has more experience).

    I kindly ask you, to help me in this situation with a good advice of what is best to do because I have no one else with experience in these things to ask apart from my accountant who says everything will be just fine.

    Thank you!

  2. #2

    Some things in Moderation

    cojak's Avatar
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    Default subcontracting part of salary

    It's fraud and illegal, the Belgian tax authorities will have your hide.

    HTH.

  3. #3

    My post count is Majestic

    northernladuk's Avatar
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    Quote Originally Posted by cojak View Post
    It's fraud and illegal, the Belgian tax authorities will have your hide.

    HTH.
    Can't see that there is anything else to add to this tbh...

    but..

    He said he did this for several persons(about 20-30 persons) and I know he has a very good reputation throughout the forums and people go to him.
    I am sure his reputation is very good, anyone avoiding tax via him will think this. It is his reputation for giving good legal advice, adhering to local taxation policy and his impending reputation with a number of different authorities is what you need to be thinking about.

    Care to name this outfit?
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  4. #4

    Should post faster

    Nathan SJD Accountancy's Avatar
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    Quote Originally Posted by northernladuk View Post

    Care to name this outfit?
    ... WNLUKS

  5. #5

    My post count is Majestic

    northernladuk's Avatar
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    And your home country would be where exactly?

    Very interesting article about working in Belgium here

    http://www.pcg.org.uk/cms/index.php?...-a&Itemid=1413

    Not sure it will help but it is an interesting read particulary for the OP this section. Might not be directly related but should give him the idea he needs to do it right..

    The exchange of information between the tax authorities of Belgium and the UK is increasing. This makes it more likely the Belgian Tax Office will become aware your UKLC’s operations may constitute a PE. This is irrespective of the fact you can show ongoing full declaration on your UK company account submissions and on your UK self-assessments.

    The consequences can be serious.

    Dependent on the time your UKLC has been operating in Belgium, it could become liable for tax in Belgium going back up to 3 years (if only deemed a civil misdemeanour) or up to 7 years (if the non-declaration is deemed a fraudulent act).
    Additional interest and penalties, which can be severe, may also be due.
    Perhaps worst of all, you could end up with a criminal record.
    Last edited by northernladuk; 19th October 2012 at 16:41.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

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