T&T 30% Millionaire Tax

[De Dragon]

All the taxes in the world will not amount to a hill of beans IF you cannot collect it, punish those who evade it, and use it to generate revenue. I have yet to see any evidence of this being done, except to the small man via VAT, skybox, and increased fuel cost.

[pugboy]

Easier said than done,
Even trump getting away legally

[crash dummy]

Most millionaires who own their own company don't even pay the current 25% tax on their income.
Most of their personal expenses are funneled thru the company's books, so they can pay themselves what appears to be a low salary for tax purposes, plus their company records a lower profit and hence pays less tax.

Friend of mine has a smallish construction business. Few years ago she had a really good year.

Accountant called her near year end to warn the tax was going to be high.

When she saw the est tax bill she was shocked. She asked if there was anything she could do to mitigate the tax bill.

Accountant say she must acquire company assets.

So said. So done.

Tax bill reduced.

That was the accountants solution? She bought a SUV/"company assets"?
Carry on....

[*KRONIK*]

Oh hai guize...
Poor man crew, checking in!

[Dave]

Most millionaires earn pa over 12 mths. It is extremely easy to create expense. The govt isn't going to collect a cent from ppl being taxed at 30%

[EL JEFE]

Most millionaires earn pa over 12 mths. It is extremely easy to create expense. The govt isn't going to collect a cent from ppl being taxed at 30%

There are people that earn 100k+ a month.

[desifemlove]

All the taxes in the world will not amount to a hill of beans IF you cannot collect it, punish those who evade it, and use it to generate revenue. I have yet to see any evidence of this being done, except to the small man via VAT, skybox, and increased fuel cost.

such intelligence!!!

[desifemlove]

I dunno who the advisors are to this government.

They're fools whoever they are.

Look. If they raise upper class taxes, either:

- money laundering goes up
- more offshore accounts. come on, Cayman Islands ent far..
- more accounts opened in Canada, UK, Eurozone
- people will just up and leave/emigrate. Sell off their assets at home, or get somebody to run it/take a cut from it, and go overseas to countries with more acceptable tax rates.
- more net emigration means a smaller tax base
- if PNM want more taxes, then tax booze and cigs. firetruck those who ball, nobody needs to drink or smoke. or tax KFC/all junk foods. KFC or Wendy's won't pull out of the country, T&T is a very small market amongst their global markets and they'll recoup any losses in Europe, USA, or China or wherever.

PNM need to realise that diversification and enabling new industries is the key here. UNC too, but then if UNC win next election (imho more likely all the time now, since PNM ent managing this situation well enough) will Kamla do better?

In a fiscal hole, the standard process is to raise taxes and cut spending. this is econ 101. But then this is a really stupid move.

[Miktay]

Most millionaires who own their own company don't even pay the current 25% tax on their income.
Most of their personal expenses are funneled thru the company's books, so they can pay themselves what appears to be a low salary for tax purposes, plus their company records a lower profit and hence pays less tax.

Friend of mine has a smallish construction business. Few years ago she had a really good year.

Accountant called her near year end to warn the tax was going to be high.

When she saw the est tax bill she was shocked. She asked if there was anything she could do to mitigate the tax bill.

Accountant say she must acquire company assets.

So said. So done.

Tax bill reduced.

That was the accountants solution? She bought a SUV/"company assets"?
Carry on....

No she acquired a company car that she uses for company business that she charges off against company revenue reducing company taxable expense.

Read b/t the lines.

[SR]

Most millionaires earn pa over 12 mths. It is extremely easy to create expense. The govt isn't going to collect a cent from ppl being taxed at 30%

Correct....this is only one setta talk on paper for imbert....ask his wife how she hides expenditure like any other buisnessman in this country

[desifemlove]

There are oil and gas and other executives that get that kind of compensation.

This is just a 5% addition to taxes due on earnings above the 1M.

it probably cheaper to pay it that go through the hoops to try to avoid paying it.

Keep in mind that they would have data on who was declaring that income already.

50k per 1M in income declared above the 1st M.......small ting

How much an antagonistic audit from BIR will cost????

andn they pay off their fellas in the BIR not to pay it.

[desifemlove]

I aint no accountant, but seeing what SOME accountants do, this should be EASY like pie to evade.
PLUS i don't know any millionaire that collects 1M personal income a year.
I know one that gets 7k + a month (no not me i'm poor af)

how is millionaire defined? is it salary, or net worth/assets? probably few of the former, plenty of the latter.

[zoom rader]

Seem fair, but doubles men still ant paying income taxes

[eurotuner]

Zoom raider

[Redman]

Nothing said above is new or innovative....and are common tax avoidance tools,in place for a long time.

But for the MoF to take the political lix he getting for the tax-there had to be sufficient numbers of individuals (not companies) paying taxes and earning enough over the 1M to make it worth the lix.

They know who they targeting and its a small enough tax to be easier to pay than to avoid.

[pete]

No she acquired a company car that she uses for company business that she charges off against company revenue reducing company taxable expense.

Read b/t the lines.

And depreciate the asset over the next few years, buy from the company at the depreciated value and sell for big profit.

Should have a cap on the value that can be applied to company revenue for passenger vehicles IMHO. But I guess if they do that hardly any more BMW and Mercedes Benz would sell here.

[Miktay]

No she acquired a company car that she uses for company business that she charges off against company revenue reducing company taxable expense.

Read b/t the lines.

And depreciate the asset over the next few years, buy from the company at the depreciated value and sell for big profit.

Should have a cap on the value that can be applied to company revenue for passenger vehicles IMHO. But I guess if they do that hardly any more BMW and Mercedes Benz would sell here.

Yes. Depreciation reduces taxable income. Not to mention vehicle maintanence.

Afterwards it will likely be acquired for personal use for small $.

Most large T&T companies use this practice for their senior staff. How u think directors and MDs driving German automobiles?

Thiz iza standard practice.

[pete]

I know it is a standard practice. So much duty and Motor vehicle tax on those vehicles that they don't *really* avoid paying taxes though.

[Dizzy28]

Nothing said above is new or innovative....and are common tax avoidance tools,in place for a long time.

But for the MoF to take the political lix he getting for the tax-there had to be sufficient numbers of individuals (not companies) paying taxes and earning enough over the 1M to make it worth the lix.

They know who they targeting and its a small enough tax to be easier to pay than to avoid.

But since they already avoiding taxes (PAYE and Corporation Tax) then it also easy to just put measures in place to a avoid this extra 5%.

[Miktay]

I know it is a standard practice. So much duty and Motor vehicle tax on those vehicles that they don't *really* avoid paying taxes though.

Depends on who/what iz paying the duty. If thiz iza personal vehicle then expenses are coming outta ur pocket.

If its a company vehicle the company pays...not u.

[MaxPower]

Millionaires n billionaires are already a step ahead...

[Redman]

Nothing said above is new or innovative....and are common tax avoidance tools,in place for a long time.

But for the MoF to take the political lix he getting for the tax-there had to be sufficient numbers of individuals (not companies) paying taxes and earning enough over the 1M to make it worth the lix.

They know who they targeting and its a small enough tax to be easier to pay than to avoid.

But since they already avoiding taxes (PAYE and Corporation Tax) then it also easy to just put measures in place to a avoid this extra 5%.

OF course.
But individuals are limited by what's legally available...so you can only avoid so much.
Beyond that they have to pay on the income.
I would assume that any one at that level is maxed out on their tax free income...so there very well may be nothing else to do but pay the additional 5%.

Which is the point.
No govt institutes a new tax that is easy to avoid.

[Miktay]

Millionaires n billionaires are already a step ahead...

Yes. And most State bureaucrats know this.

Thats why any new business taxes proposed by Big Gubbament will be passed onto the customers of the business and/or the middle class.

That likely means that you and I will pay the tax increases.

That's why most taxes are a complete sham.

[De Dragon]

I aint no accountant, but seeing what SOME accountants do, this should be EASY like pie to evade.
PLUS i don't know any millionaire that collects 1M personal income a year.
I know one that gets 7k + a month (no not me i'm poor af)

how is millionaire defined? is it salary, or net worth/assets? probably few of the former, plenty of the latter.

The new tax would apply to earnings over $1m a year.

[Dizzy28]

Nothing said above is new or innovative....and are common tax avoidance tools,in place for a long time.

But for the MoF to take the political lix he getting for the tax-there had to be sufficient numbers of individuals (not companies) paying taxes and earning enough over the 1M to make it worth the lix.

They know who they targeting and its a small enough tax to be easier to pay than to avoid.

But since they already avoiding taxes (PAYE and Corporation Tax) then it also easy to just put measures in place to a avoid this extra 5%.

OF course.
But individuals are limited by what's legally available...so you can only avoid so much.
Beyond that they have to pay on the income.
I would assume that any one at that level is maxed out on their tax free income...so there very well may be nothing else to do but pay the additional 5%.

Which is the point.
No govt institutes a new tax that is easy to avoid.

The people I see paying this are monthly salaried persons i.e. CEOs, management and maybe employees who are well bonused wherein tax is taken out at the source i.e. payroll.
(In 2004 I worked in a private company where 3 persons on the payroll earned greater than $100,000/month, I am sure they will have to pay this extra 5%)

Business Owners would not really bothered by this at all. My first place of employment I earned the same monthly salary as the owners - $2,200 per month (this was when the personal allowance was $25,000 per annum). However they took lots of personal foreign travel (they had two kids in the UK doing medicine) that was paid for the company and accounted under business travel, they drove cars owned and maintained by the company etc. It was a construction company and even all the groceries bought for their residence was placed into jobsite expenses. Clearly BIR had no problem with a work site purchasing LPG gas, pringles, cookies and the like!!!

[desifemlove]

I aint no accountant, but seeing what SOME accountants do, this should be EASY like pie to evade.
PLUS i don't know any millionaire that collects 1M personal income a year.
I know one that gets 7k + a month (no not me i'm poor af)

how is millionaire defined? is it salary, or net worth/assets? probably few of the former, plenty of the latter.

The new tax would apply to earnings over $1m a year.

So much intelligence...piss off Ms. man.

[eliteauto]

free trips to The Bay for Christmas coming

[Morpheus]

LoL

[Redman]

Nothing said above is new or innovative....and are common tax avoidance tools,in place for a long time.

But for the MoF to take the political lix he getting for the tax-there had to be sufficient numbers of individuals (not companies) paying taxes and earning enough over the 1M to make it worth the lix.

They know who they targeting and its a small enough tax to be easier to pay than to avoid.

But since they already avoiding taxes (PAYE and Corporation Tax) then it also easy to just put measures in place to a avoid this extra 5%.

OF course.
But individuals are limited by what's legally available...so you can only avoid so much.
Beyond that they have to pay on the income.
I would assume that any one at that level is maxed out on their tax free income...so there very well may be nothing else to do but pay the additional 5%.

Which is the point.
No govt institutes a new tax that is easy to avoid.

The people I see paying this are monthly salaried persons i.e. CEOs, management and maybe employees who are well bonused wherein tax is taken out at the source i.e. payroll.
(In 2004 I worked in a private company where 3 persons on the payroll earned greater than $100,000/month, I am sure they will have to pay this extra 5%)

Business Owners would not really bothered by this at all. My first place of employment I earned the same monthly salary as the owners - $2,200 per month (this was when the personal allowance was $25,000 per annum). However they took lots of personal foreign travel (they had two kids in the UK doing medicine) that was paid for the company and accounted under business travel, they drove cars owned and maintained by the company etc. It was a construction company and even all the groceries bought for their residence was placed into jobsite expenses. Clearly BIR had no problem with a work site purchasing LPG gas, pringles, cookies and the like!!!

Those like your previous owners would be prevalent...but here is the challenge.

The ACCOUNTANT is failing in his professional obligations-factually he knows they doing wrong.And he isnt supposed to be condoning those habits
But since the chance of getting caught and audited and penalized are zero....everybody does this-so now the tax capture is low despite the Construction co benefiting from the roads,subsidized gas,free education and medical that the tax reciepts pay for...

if we would have enforcement from the BIR AND professional standards boards of the accountants and auditors ..(Chanka admitted to cooking at HCU...and still in play) we would have better compliance and tax receipts.

Maybe even lower tax rates.

[MaxPower]

More taxes for the people means more pockets to fill...