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C. Lollio: Some thoughts shared on the new provisions on co-ordina/ed._.
well as the necessary duration of the ernployrnent contract, the fact that
the worker does not share in the business' profits.
As regards the protection afforded to workers in these types of work
contracts, there would seem to a division between cantracts far work
frorn home, which are distinguished by a strong form of protection and
other types of contracts in which, instead, only the provisions on ernployrnent
law trials, the Federai Law on holiday leave and the law on collective
ernployrnent contracts are applicable.
In German incorne tax legislation, there is no definition of co-ordinated
and continuous collaboration contracts but the legislator seerns to
have rnade a specific choice with reference only to the rnost cornrnon
types of co-ordinated and continuous collaboration contracts.
Indeed, E.StG (EinKornrnensteuergesetz, The law on incorne tax)
rnakes the usual distinction between incorne frorn self ernployrnent work
and incorne frorn subordinated ernployrnent.
In the arnbit of this division between the aforernentioned categories,
the typical exarnple of co-ordinated and continuous collaboration is that
of the incornes of cornpany directors, which are assirnilated by the law
to incornes earned during the course of self ernployrnent work. With reference
to the latter category of incorne, in fact, article 18 of the aforernentioned
provisions differentiates incorne earned by workers who belong
to the so-called protected categories frorn incorne earned during the
course of adrninistrative activities, such as those carried out by cornpany
officers (cornpany directors, internai auditors etc ... ).
In the absence of an express provision of law in relation thereto, it
has to concluded that, presurnably, other types of co-ordinated and continuous
collaboration contracts shall be deerned to generate incorne frorn
subordinated ernployment, provided that the workers are subordinated to
the instructions of another person as to the rnanner, the location and the
deadlines within which the work shall be performed (Unternehrner), as
provided for by article 19 of the EstG, or are assirnilable to incorne frorn
free lance work, provided that the activities are of an adrninistrative nature,
as provided for by article 18 of the sarne law.
The inclusion or not in one of these categories shall obviously lead to
differences, for exarnple, criteria for determining the incorne, and as to
whether such incorne shall be taxed on the basis of the financial staternent
and whether withholding tax shall be applicable or not (62).
(62) For an overview on the German tax system, cfr. G. Testa, Manual No.2 annexed
to the tax review dated 2 February 1991, p. 25 ff.
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