In 1789, Benjamin Franklin wrote in a letter, “Our new Constitution is now established, and has an appearance that promises permanency; but in this world, nothing can be said to be certain, except death and taxes”.
Today in Luxembourg and other countries around the world, corporations and high net earners have found ways to escape the centuries-old certainty of taxation by either completely evading or paying significantly lower taxes. Although this aggressive tax system, as it is called, is legal, it requires expertise far from affordable to everyone. A less difficult way for budding entrepreneurs with limited resources to realise their business ideas is to start as sole-proprietors or micro-enterprises. They are neither able to afford the services of accounting experts for complex tax returns and social security calculations, nor able to implement “optimised taxation plans”. Recognising these challenges, Touchpoints ASBL organised its Business MeetUps event at the accounting firm, GT Fiduciaires SA, for entrepreneurs to get insight into the complicated world of corporate accounting.
GT’s associate-founder, Gernot Kos, talked about some taxes and social security obligations in Luxembourg both for individuals (sole-proprietorship) and companies. He also advised participants on easy ways to document financial transactions such as the two-column income and expense note but cautioned on their limitations for business entities other than sole-proprietorship. Mr Kos was assisted by Raymond Schadeck, a well-known auditor, administrator and project initiator in Luxembourg. Together, they explained how ensuring a clean financial record can facilitate tax calculation and save the life of a business.