THE SHVARCSYSTEM – SCAREMONGERING BY LEGAL ADVISERS OR A REAL RISK?

THE SHVARCSYSTEM – SCAREMONGERING BY LEGAL ADVISERS OR A REAL RISK? As a transactional lawyer, I deal with this on a regular basis. As part of our legal and tax due diligence of target companies, contracts with “full time” contractors are a regular finding. My colleagues and I always analyse in detail how real the regulatory and financial (tax and tax) risks of a particular relationship are. The “defence” is often as follows: 📌 the contractor invoices us for several LLCs within the group;
📌 the contractor pays us a rent of EUR 100/month for a computer and space; or
📌 the contractor invoices through his/her Ltd. and works for one other customer. But is this sufficient to avoid the risks of the shvarcsystem? It depends on several circumstances and details. We have therefore decided to take a more comprehensive look at this topic and will also discuss these topics at our next hybrid conference on 18.4.2024(https://lnkd.in/eHqtUCj4): ✅ Where is the boundary? In which situations is it still possible to “employ” a contractor and when does the relationship have to be an employment relationship?
✅ What are the economic implications of employing contractors (macro and micro tax-tax implications, comparison of sole proprietorship and SRO)?
✅ Can the employment of contractors in some cases constitute a criminal offence(Tomas Strémy) ?
✅ What are the limits and possibilities of the Labour Code (Katarina Matulnikova) ?
✅ How to set up contracts with contractors and adjust the factual situation to reduce regulatory risks ? We currently have over 200 registered participants. Will you join us?