Cross-border workers continue to argue with tax authorities

The reason for the confrontation between ordinary employees and tax inspectors is the inability of the latter to adequately calculate the former’s number of days of telework or prove their compliance with the norms.

Between Belgium and Luxembourg, as well as between France and Luxembourg, agreements have been signed on telework for cross-border employees. But they just confirm the number of days is almost impossible. The tax rules adopted between the three countries are significantly outdated.

The IRS does not accept restaurant bills, travel documents, or data from time tracking systems as evidence. Even the personal vehicle mileage can’t be used to confirm that the employee was in the office. In addition, if a worker began or ended the working day at home, whether it was for one hour or even 5 minutes, the whole day’s work is considered telework.

And yet there are about 40 different timekeeping technologies in use in Luxembourg. They help record working hours, vacations, sick days and even leaves of absence. All in order to guarantee employees legal evidence of compliance with telework agreements.

The only question is whether the tax authorities will accept the reports of such systems as evidence.