A precious metals trader, with only €12,721 in liquid assets, should still be paid €25,000 in wages, according to the Inland Revenue. That would mean the immediate end of the business. The court and tribunal set the customary wage at €7,500. This ruling clarifies when deviation from the statutory minimum wage is possible. An incidental loss does not suffice, but if wage payment immediately kills the business, it does. The court looks at the complete picture: liquidities, stocks, business assets and future prospects.
Precious metals trade in dire straits
The dga is the sole employee. The dga files a payroll tax return at the end of 2022, declaring taxable wages of €48,000. As payment is not made, the inspector imposes an additional tax assessment for that amount. Several months later, the managing director lodges an objection. He claimed that the tax return was based on incorrect figures and requested a review of the additional tax assessment. The tax inspector granted the director and reduced the taxable salary to €25,000. The director appealed.
In 2019 and 2020, the bv makes modest profits. In 2021, coronasteun increases profits to €26,187. In 2022, a loss of €5,664 follows. When in 2023 the loss worsens to €23,433, the dga decides to discontinue the business. He terminates the lease of the business premises and prepares to cease operations. Equity falls to €40,731, with only €12,721 in cash. Payment of €25,000 would mean the immediate demise of the company. Stocks and assets would then have to be sold to pay the salary. The company can then no longer function.
Court: continuity comes first
The court sets the customary wage at €7,500. The court confirms. The law offers this leeway in case of structural losses that threaten continuity. Not only liquidity counts, but the entire financial position. The dga did not take a salary for years to build up assets. This is tied up in business essential assets. Crucially, the dga has not withdrawn money through other routes. The accumulated assets are entirely in the company. The inspector should not turn a blind eye to the fact that the company made further losses in 2023 and ceased operations in 2025.