More frequent checks against illegal employment

The Financial Administration is stepping up its control activities focused on illegal forms of employment, in particular on so-called disguised labour mediation.

As part of its inspections, it assesses the actual economic substance of business relationships and the factual characteristics of the work performed, and verifies compliance with tax obligations. It focuses in particular on artificially created contractual relationships in chains of companies, the use of formal employment agencies, and chains of companies that invoice for the delivery of work even though employees perform work under direct supervision.

The audits also focus on situations where employers formally transfer part of their employees' taxable wages to various non-entitlement or lump-sum allowances that are not subject to tax, such as travel allowances, contributions for the maintenance of work clothing, allowances for wear and tear on personal tools, and lump-sum allowances.