A consultant enters into an agreement with a relationship agency in 2011 for mediation services, for which she receives a commission. She declares her income, ranging from €11,705 (2016) to €17,023 (2019), as profit from business. After an audit, the inspector concludes that the income qualifies as wages from (fictitious) employment.
Business profit?
The court ruled that the consultant did not possess sufficient independence and entrepreneurial risk. The counsellor is obliged to use the agency's forms and payment arrangements. In case of absence, she must arrange replacement through another consultant of the agency. Furthermore, there is no evidence of commission negotiation. Moreover, the consultant has only one client, an open-ended contract and no demonstrable debtor or investment risk. She also does not act externally as an entrepreneur. Therefore, the income does not qualify as profit from business.
Fictitious employment
The court concluded that there was fictitious employment. The counsellor provides structural mediation against remuneration in order to conclude agreements between clients and the dating agency. The consultant works exclusively for the agency, is not assisted by others and her income (commission) is directly linked to her mediation activities. The additional tax assessments are justified.