Potential Risks

The enforcement of exiting regulations has become more stringent in many countries, especially in Europe and the USA following the worldwide economic crisis. Governments recognise the enormous potential of income stream within the contracting sector that has been overlooked in the past and are now acting upon it.

Clients are inspected by tax and social security authorities more closely than previously to ensure that all wage tax and social security liabilities have been paid. Contractors and end clients can be audited on their current activity or contract but the authorities are also entitled to review the last few years of this activity. They can also verify all the work permit issues, and if so, who arranged them. All of the parties involved in the employment of the contractor could be forced to pay heavy fines if the rules have not been respected.
(example: taxes have not been paid in the correct manner)