Taxman says 'cash jobs' and internet traders on hit-list

[Conquiztador]

So internet traders are the next place IRD is going to collect revenue.

Wonder who is considered a "Internet Trader"? Where is the line drawn?

I already know of Trade Me traders who has more then one account so they don't seem to sell too much. In one case 4 accounts.

But surely the IRD need to then be able to get the details of the trader. And if we do not provide the real info when we sign up, then what?

A little bit of a mystery this.

http://msn.nzherald.co.nz/business/n...ectid=10577716

[Slicksta]

So internet traders are the next place IRD is going to collect revenue.

Wonder who is considered a "Internet Trader"? Where is the line drawn?

I already know of Trade Me traders who has more then one account so they don't seem to sell too much. In one case 4 accounts.

But surely the IRD need to then be able to get the details of the trader. And if we do not provide the real info when we sign up, then what?

A little bit of a mystery this.

http://msn.nzherald.co.nz/business/n...ectid=10577716

Tm trading for thoes who make a living off it is impossible to police good luck to them

[mynameis]

They'll eventually get there mate, it's not too hard in todays environment.

Hey it's only fair init?

You work and earn 30 40 50 60 k you pay your tax ect ect if you're doing it online you should be as well.

[awayatc]

indeed.................

[Conquiztador]

They'll eventually get there mate, it's not too hard in todays environment.

Hey it's only fair init?

You work and earn 30 40 50 60 k you pay your tax ect ect if you're doing it online you should be as well.

I have no problems with that. Just wonder where the line is drawn. Take the selling of vehicles. I have yet to get the same info when I ask how many cars/bikes I can sell a year before I am considered a trader.

[mynameis]

I have no problems with that. Just wonder where the line is drawn. Take the selling of vehicles. I have yet to get the same info when I ask how many cars/bikes I can sell a year before I am considered a trader.

They draw the line nice and clear and encourage people to declare anything and everything and pay up, reality is just a little bit different.

I guess like any country/society taxman will never pin everything/everyone down hence they are taking the sensible approach of "encouraging" people.

As for competant IRD staff

[NDORFN]

Trademe (Fairfax) should just pay G.S.T on all sales and take it out of the exuberant fees they're already charging us.

[Conquiztador]

Trademe (Fairfax) should just pay G.S.T on all sales and take it out of the exuberant fees they're already charging us.

There is also the income tax. You only pay GST if you are GST registered. Has to do with how much you sell per year. Cant remember how much now.

But if you are not GST registered then there is the income tax. You just sell some bikes on TM. Say you buy a bunch of s/h bikes for $1,000. You then buy bits to fix them for another $1,000. If you ca't prove the cost of purchase and parts, then the taxman will tax you on the full sale. You sell them for $10,000, lets say the income tax is 25%. leaves you with $7,500. But as you did pay for the bikes and parts (even if you can not prove this, the profit for you is $5,500.

BUT if you do it all legally then you first pay GST on the sale of $10,000. Leaves $8,999.99. Now it gets interesting: As you are now a business you can claim costs for all this. Here a short list:
- Initial purchase costs and cost for parts. (if you have reciepts with a GST number on you will get the GST back too!)
- Running office from home: Normally up to 40% of all costs at home: rent/mortgage, power, phone etc.
- Your car costs as you need the van for business use only (you have a hatchback for personal use). This is 100% of petrol, repairs, rego wof etc.
- Your mobile phone.
- Advertising. You have decided that the best way to advertise is by sponsoring your self when you race. Leathers, tyres, paint job, new bike. List goes on.

And so, after the GST has been paid there is nothing left to pay Income tax on.

So the only thing the IRD will get here is the GST. However, if you are under the GST treshold and you do all this, then there is nothing for IRD to tax you on...

But now the IRD will come knocking and spend time and money trying to get us to pay tax on our sales.

What a waste of exercise funded by our tax dollar.

[YellowDog]

If you don't stay under the radar, you will get caught.

And when you do, you will have to pay back what they say you owe and also fined for not decalring it.

[Usarka]

I have no problems with that. Just wonder where the line is drawn. Take the selling of vehicles. I have yet to get the same info when I ask how many cars/bikes I can sell a year before I am considered a trader.

I don't know the legalities of tax law, but I thought it was simple.

All income is subject to taxation.

Buy and put 4,000 on the clock then sell 2 weeks later - no problem. Buy and sell to make a profit - cough up matey.

[Swoop]

You only pay GST if you are GST registered. Has to do with how much you sell per year. Cant remember how much now.

I believe it was $35,000 or over, per year.

[Mully]

So do I need to pay tax on all the drugs I sell, or just the ones I sell on TM?

[Naki Rat]

Used to be that if you were GST registered you could could claim back a GST content on second hand goods purchased irrespective of whether the seller was GST registered and had added GST.

Example to explain: GST registered person buys a trailer from Joe Bloggs (not GST registered) for $900. At present (12.5%) GST level buyer can claim $100 GST back

[Naki Rat]

The Secondhand Dealers & Pawnbrokers Act is the legislation that IRD will hunt you down on.

Essentially you get to trade $2,000 or "on 6 days" per year before legally having to have a Secondhand Dealers & Pawnbrokers Licence. The licence costs about $350 and requires police checks, etc. It's all about the authorities having checks in place to be able to track stolen goods.

[vifferman]

You're overlooking a few things.
Secondhand goods aren't (usually) subject to GST - it's presumably already been paid when the item was new.
There's nothing new about what the IRD are doing: they've always been taxing income that tax has been avoided on. F'rinstance, they have people who watch the results of criminal cases, and if someone has a significant income from a criminal activity, and hasn't declared it, they could well be taxed for it (if it's worth chasing up).
The deal with selling cars, houses, junk on TardMe, etc. is whether it looks like someone is deriving an income from it, as evidenced by a regular pattern of behaviour. One or two cars a year, or a new house in the same area every 18 months is not deemed to be an occupational income. Selling 100 items a month on TardMe would be, as would changing bikes or cars every couple of months, provided you were making a profit in doing so.
As for the owners of TardME - they're already paying tax on the charges they make (their income from their business). Any employees of TardMe are paying income tax on their salaries.

It's reasonable, innit? Why should someone be making a living selling crap, and not be helping to pay for essential services like healthcare, paying cops to hand out prizes for driving 12km/h too fast, keeping criminals cozy, well-fed and entertained? Some of us have no choice, and our employers and/or banks work on the IRD's behalf for us.