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being paid abroad??/

Posted by Collie21 - Created: 14 years ago
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Just wondering if anyone knows........it seems very dodgy to me but there seems to be a fair few companies offering jobs here but you need to have a bank account in another country?? Is this some sort of scam or is it perfectly legal and above board??? Can anyone fill me in??hey does that wall have a crack in it?

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6 replies (Showing replies: 1 to 6)

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Posted by EUworker - 13 years ago

I see this thread is a bit old, but I wasn't able to find the answer to my own queries within. A foreign company may offer me a job representing them in France with employee status and not as an independant or "agent commercial" status which entails being declared through the greffe du tribunal. No local French office exists. Any salary would go onto a French bank account; therefore it's not a question of overseas or foreign bank accounts.In this case, how does this contribute for retirement, unemployment and health insurance benefits in France? Where are all these charges paid: in France or in the country where the company is located? Is this a viable solution or is this a bit dodgy? Any clarifications are most welcome.EUworker

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Posted by mike-179830 - 14 years ago

quote:not wanting the expense and trouble

And we might not "want" the "expense and trouble" of paying (say) our employees' French social charges. But we have to. Hey, maybe we'd rather not have the expense and trouble of having to deal with a 35-hour week or paying SMIC, but we have to do that too. So do "foreign" employers.

This stuff is not optional, and those of us who play by the rules a) don't welcome unfair competition (and the implicit cost-avoidance of "bypassing" the French system illegally is just that) and b) are in the happy position of having the law (and the courts) on our side.

I can, to return to the point, see no legitimate (i.e. legal) reason for an employer to insist on an employee who is living in France to have an offshore bank account.

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Mike

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Posted by GordonLeGopher - 14 years ago

Going slightly off subject, here's a scenario that someone might have some ideas on...

British man, living in France (with bank account) is offered a job in Italy. He worries about staying legal and keeping his social security benefits in France (main concern: medical charges paid for as they are now).

Potential employer says that it is perfectly legal, under Italian law, to pay 10% income tax at source (similar to PAYE in UK, I guess) if worker is living abroad and that this satisfies the tax legalities in Italy. (Sorry I don't have the official terms for this.) Potential employer says that British man would not have to pay income tax on the money in France - earned in Italy, paid into bank account in France - as this would effectively be paying income tax in France and in Italy.

Does this sound legal?

If so, how does this person keep his social security benefits in France?

Is there a way of paying 'contributions' (equivalent of National Insurance in UK) in France whilst paying income tax in a different country?

Surely there is a way of doing this. The only similarity I can think of would be foreigners who retire to France, thereby not earning money but still finding a way to be entitled to medical care.

I apologise if this posting is somewhat jumbled but I hope it is sufficiently clear for someone to give me some ideas.

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Posted by MikeP-180526 - 14 years ago

is it possible that it is as simple as the employer being in (e.g.) the USA and not wanting the expense and trouble of making internation payments?

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Posted by mike-179830 - 14 years ago

As MikeP says, take expert advice. However...

To insist on an overseas bank account sounds very dodgy to me although, as the employee, I suspect that you'd be under somewhat less direct danger than the employer.

Put it this way, should I hear of a competitor offering job contracts for people living and working in France under such terms I would have the company's lawyers on the case instantly; I suspect that we would cause serious trouble for the employer (depending on the context we might pursue the matter as either a criminal - with partie civil - or purely civil matter), while the employee would (I think) simply find themself unexpectedly unemployed. 

There are circumstances where an overseas employer can employ someone in France on an overseas, rather than French, contract (although they are surprisingly rare and, as MikeP says, you still have to declare that income here), but I can't think of a single legitimate reason where a foreign bank account might be a requirement.

(Although, as the disclaimer has it, I am not a lawyer: why buy a dog and bark yourself?)

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Mike

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Posted by MikeP-180526 - 14 years ago

There is nothing dodgy about it as long as you are aware of the tax implications.  If you are fiscally resident in France the French authorities need to be aware of your income elsewhere,  which may then be subject to taxation here or may be exempt if taxed at source, depending on any applicable doulbe taxation treaties.

What is illegal is to earn money elsewhere and not declare it when/if required to do so.

So the type of arrangement you mention is not necessarily a scam - but it could be!  Please take expert advice.