When I receive a 100€ salary net on my bank account after all taxes, my company had to actually cash out X€, split into their charges and my gross salary. After my charges and taxes are removed, I see the 100€ above.
The value of X depends on the country, let's assume that for France that would be 400€.
This is the case for salaries.
Why wouldn't a company rather give me a donation of Y€? They would need to pay taxes on that (not charges), and then I could (and should) pay charges (social security, retirement, etc. - similar to the charges which are deducted from my salary). I would not pay taxes on donation.
Is this solely because for a final 100€ in my account, Y is greater than X?
I would be interested in a European perspective (and to fix things - ideally French, other countries are fine too if they are not that different from France)
EDIT: For the sake of clarity, I am not interested in any fraudulent setup. I wanted to understand whether the solution is legal, and if so why it is not used.
Answers of the type
- it is not allowed by law because whenyou work for someone the only way you can be paid is though a salary (so a legal contraint)
- it is not interesting financially (for either the company, the employee or both)
are perfectly fine.