15% GST

[Oscar]

And how many IRD inspectors are invited out to dinner?

He has to record the name of the person he is entertaining and the name of their company.
I wouldn't fuck with the IRD, they don't take prisoners...

[Coldrider]

He has to record the name of the person he is entertaining and the name of their company.
I wouldn't fuck with the IRD, they don't take prisoners...

er OK, internal/external audits can be just as bad, but what was that post actually highlighting to the average tax payer?

Hint hint, the IRD lost a big court case this week.

[Oscar]

er OK, internal/external audits can be just as bad, but what was that post actually highlighting to the average tax payer?

Hint hint, the IRD lost a big court case this week.

What are you on about?

[Coldrider]

What are you on about?

Wealthy people (earners) structure their income so they pay as least tax as possible. When a reasonable amount of tax is deducted people don't give a fuck.
When it becomes unfair and economic to restructure their finances they do.

[Coldrider]

If someone earns $26 K pa how much tax should they pay?
If someone earns $200K pa how much Tax should they pay?

[Oscar]

Wealthy people (earners) structure their income so they pay as least tax as possible. When a reasonable amount of tax is deducted people don't give a fuck.
When it becomes unfair and economic to restructure their finances they do.

So what?
Most of them didn't get rich by being stupid - why would they pay more tax than they are required to?
However what you were referring to earlier was illegal.

[p.dath]

Speaking of entertainment, can someone tell are sex workers GST registered?

Ask for a GST receipt.

[Coldrider]

So what?
Most of them didn't get rich by being stupid - why would they pay more tax than they are required to?
However what you were referring to earlier was illegal.

What is illegal ? Are they a couple, clients, employees ?

[Oscar]

What is illegal ? Are they a couple, clients, employees ?

Your original post inferred that they were cheating.

[Coldrider]

Your original post inferred that they were cheating.

The original post is sarcasim, there is not enough facts in the story for anything else.
It is tongue & cheek post for those quibbling about gst fairness when they are missing the greater picture.

[Winston001]

What are you on about?

Probably the Christchurch case where two surgeons structured themselves as working for a service company. Paid themselves a salary and the company billed for their work. The decision is being appealed by IRD.

However the reasons for the structure were to limit personal liability rather than avoid tax. Perfectly understandable and so far successful.

[Mully]

Probably the Christchurch case where two surgeons structured themselves as working for a service company. Paid themselves a salary and the company billed for their work. The decision is being appealed by IRD.

However the reasons for the structure were to limit personal liability rather than avoid tax. Perfectly understandable and so far successful.

That looks interesting - got any links to the story? Keen on reading that.

[Winston001]

[QUOTE=Mully;1129658103]That looks interesting - got any links to the story? Keen on reading that.[/QUOTE

Penny and Hooper v IRD. http://www.nbr.co.nz/article/ird-los...tax-case-85909

[davereid]

Thats an interesting link. I was suprised to see that the IRD lost, particularly with regard to "market value" for the job being done.

Any time there is a big difference between company and personal tax rates, its human nature to leave the money in the low tax account.

Aligning company and personal tax rates would be the only effective way to stop this kind of thing.

I expect "working for families" is suffering the same fate, with high income earners paying them selves low wages and leaving the balance in the company, to ensure they qualify.

[Coldrider]

You are on to it Winston.