Payroll payment solution is needed

[Lavvyer21]

Good evening everyone. Looking forward to finding a solution for my business.

What is given - EU company, labour rental service company. I have about 50 employees and at the moment I am paying the payroll in cash, thus increasing cash gap for my company monthly.
I'd like to pay them via wire/wallester (?). I have no problem opening accounts in any EMI for my employees, but the first and only problem - salary on the papers differs from the actual one (which is bigger).
Therefore I need to hide part of the funds, which are used to cover the actual salary, from the tax authorities.

What would be the best solution in this kind of case? I'd like to thank everyone who participates in this topic, in advance.

Last edited: Aug 10, 2024

 

[Sols]

Aside from sitting down with a good tax lawyer and payroll specialist to make sure you maximize deductions and make use of every possible tax incentive, I think you have to face reality that the world today isn't very accommodating for this type of tax evasion anymore.

What you're proposing is textbook tax evasion. It's the first thing junior officers at tax authorities are trained to detect and question. You can try different methods but all you're doing is squirting gasoline on a fire.

As long as it's mostly cash or crypto, you have some wiggle room to have poorly explained flows and losses. But as soon as you enter electronic banking, it's much harder to get away with this old school tax evasion.

Remember, even if you don't get caught, you're still on the hook if one of your 50 employees get caught. If the tax man finds out that Bob has been making 80,000 instead of his declared 50,000, they are going to make his life miserable. And they will also look into where the money came from. If you have tried to create of obfuscation, the tax man might offer Bob a deal where they won't send him to jail if he spills the beans.

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This is the probably the answer to your question.

 

[Forester]

I agree with @Sols absolutely.

In addition just a remark: At this moment, it seems like a tax issue with your company. Have you considered the relocation of your company from the EU to some lower tax and/or lesser accounting demands jurisdiction? It might solve some of the problems.
(Of course I think about a real relocation, i.e. with substance and local director/management ”“ otherwise the company would remain EU tax resident when managed from the EU.)

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I am just a simple countryman. Anything I say is only a personal opinion, not a certified advice 🙂

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[EliasIT]

Lavvyer21 said:
What is given - EU company, labour rental service company. I have about 50 employees and at the moment I am paying the payroll in cash, thus increasing cash gap for my company monthly.
Click to expand...

You pay the payroll in cash? In what country is your company and what business are you into ?

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