How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • Go back-and-forth until satisfied
    Rate the answer you receive.
Ask UKSolicitorJA Your Own Question
UKSolicitorJA
UKSolicitorJA, Solicitor
Category: Law
Satisfied Customers: 5826
Experience:  English solicitor with over 12 years experience
62162956
Type Your Law Question Here...
UKSolicitorJA is online now

Is it legal to pay for services in gold in Belgium? I am

This answer was rated:

is it legal to pay for services in gold in Belgium? I am based in the UK and this would be for £250,000 commission on introduction of a £2.5million share deal in the UK.
JA: What state are you in? It matters because laws vary by location.
Customer: I'm in the UK, recipient lives in Belgium
JA: Has anything been filed or reported?
Customer: No deal done yet, just checking the law before deciding what to do.
JA: Anything else you want the Expert to know before I connect you?
Customer: No.

Hello,

Could you please explain more what is going on?

Customer: replied 2 months ago.
I have received an offer for some of my shares in a UK company, amounting to 20% of the total, for £2.5million. The introducer has requested a £250,000 commission, which in the context that I had previously offered the 20% stake for £2million is OK with me. The offer is being dealt with by Irwin Mitchell in Birmingham so is clearly OK in terms of money laundering etc. The investor is actually a UK guy who has a stake in a Swiss-based fund, from which the funds are coming. The issue is that the introducer has asked to be paid in gold, in Belgium where he lives. If I buy £250,000 of gold in Belgium and pay him with this is it legal, and does the transaction get reported by the operation I buy the gold from? Would it be reported back to the UK? Overall, is it legal to do this?
Customer: replied 2 months ago.
OK, awaiting initial answers.

Hello,

There is nothing against someone opting to receive gold in lieu of a an equivalent monetary amount, so there is nothing illegal about that.

However, you need to be very careful and appoint your own reputable law firm to advise you in connection with the transaction. For instance, you should not pay the commission before you have received the £2.5m for your shares. This all needs to be properly documented.

You also need to be clear about where you will buy the gold from and at what price.

I hope this helps. If so, please leave a positive rating.

Customer: replied 2 months ago.
Thanks for the basic answer re the legality of paying in gold, but the issue is that the introducer of the deal, who has pursuaded the English investor to do the deal, could be deemed to be effectively committing a fraud on him by increasing the price of the shares and then taking the £250,000 cut, which is half of the £500,000 uplift from the price I originally offered for the 20% (£2.0million) in general information to others. Now I guess that is really just an issue between him and the UK investor, and nothing to do with me, but am I participating in, or aiding and abetting a fraud.
Also, paying in gold could allow the introducer to evade tax in Belgium. Is that an issue by which I could be implicated in aiding and abetting tax evasion?

As long as the consideration and commission are clearly documented by way of written agreements, you would not be aiding or abetting a crime as it would be a civil matter.

It is up to the individual concerned to declare the gold in his tax returns. How someone manages their tax affairs is their problem, not yours.

All the best

UKSolicitorJA and 5 other Law Specialists are ready to help you
Customer: replied 2 months ago.
Hi, I don't need to 'phone call now, can we cancel it please?

Please send an email to***@******.***

Customer: replied 2 months ago.
OK, thanks.

Cheers