PIP reclassifying self-employment as employment may trigger tax inspections
When a State Labour Inspectorate (PIP) inspector reclassifies self-employment as an employment contract, the ruling does not apply retroactively — but it may prompt the tax office to audit previous years. Experts warn that the tax authority could challenge past tax and social-security settlements, creating serious financial problems for the affected entrepreneurs. The issue concerns companies that use bogus self-employment arrangements.
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