INTHEBLACK December - January 2022 - Magazine - Page 32
International recruitment
STRATEGIC CAREER MOVES
“For businesses that don’t have a corporate
structure in another country, there are exposures
for their firm if they allow their employees to
work in those countries. The employees need to
have very clear guidelines given to them by their
employer’s tax accountants - otherwise that
employer will be exposed.”
AYSEGUL KAYAHAN, RELOCATION SPECIALISTS
32
DEC 2022
JAN 2023
INTHEBLACK CAREER, ELEVATED SPECIAL EDITION
The best way for employers and
employees to avoid these and other
issues is to consider whether the current
employment contract and employment
arrangements will remain suitable, and,
secondly, to always seek advice from
accountants who specialise in expatriate
tax/global mobility of employees.
Jo Alilovic, employment lawyer and
director at 3D HR Legal agrees, and says
putting it in the too-hard basket is not the
best approach.
“I’ve had clients tell me they have an
employee who’s decided to move to New
Zealand for six months, and they decided
they’d just keep doing everything remotely.
My view was that you need to get tax
advice in that arrangement, and you need
to check the visa arrangements also.
“A lot of employers seem to think they
don’t need to worry about that or that it
seems too hard. Employers really need
to make sure that they’ve looked into it
and done it appropriately with the right
advice,” says Alilovic.
Aysegul Kayahan, founder and principal
at Relocation Specialists, says this
situation is coming up more and more,
and that businesses that do not seek advice
could be at risk.
“Traditional assignment employers who
are multinationals do take responsibility
in relation to tax considerations and
immigration, because they sponsor their
employees from other countries – but
if someone is being hired by a local
company, they may not have done the
groundwork. For businesses that don’t have
a corporate structure in another country,
there are exposures for their firm if they
allow their employees to work in those
countries. The employees need to have very
clear guidelines given to them by their
employer’s tax accountants – otherwise that
employer will be exposed,” Kayahan says.
Kayahan also advises both employers
and employees to do their research when
considering relocating.
“One of the first things I do is
encourage people to see an accountant
to discuss their tax situation in terms of
where they’ve been and where they’re
going. You need to be clear on residency
status and what your obligations are for
paying tax on property and other assets
or income streams, for example.”
