Tax Cheat?

[Guest MonkeySee]

Looks like Washington is not the only place for tax cheats. Here is an article about the owner of the Santika Pub and his tax investigation.

 

BANGKOK: -- The Finance Ministry has launched a probe into taxes paid by bosses of the Santika pub, which was destroyed in a fire on New Year's Day that killed 64 people.

 

The move could lead to legal changes if the government moves to stop people taking advantage of a loophole in current laws and collect more tax.

 

Deputy Finance Minister Pruekthichai Damrongrut set up a committee Thursday to determine if bosses of the notorious nightclub sought to evade paying tax.

 

He said the committee should come up with conclusions within 15 days and the fact finding would be used to close a loophole in excise tax laws in case entertainment operators seek to utilise that weakness in the legislation.

 

-- The Nation 2009-02-12

[Guest fountainhall]

The sub-editor was clearly asleep when he proofed that story as there is zero information about the "loophole" and the "weakness". Or more likely, he just could not be bothered finding out. Pty, as I for one would like to know - purely out of curiosity, I assure you

[Guest MonkeySee]

The sub-editor was clearly asleep when he proofed that story as there is zero information about the "loophole" and the "weakness". Or more likely, he just could not be bothered finding out. Pty, as I for one would like to know - purely out of curiosity, I assure you

It would be nice to have the full story, but this is Thailand. They give you want they want to give.

[KhorTose]

It would be nice to have the full story, but this is Thailand. They give you want they want to give.

 

This gives a whole new meaning to that old newspaper slogan. "All the news that someone thinks is fit to print."

 

I wonder how long before someone will notice that all the investigations will end up going nowhere, or am I being cynical again?

[Guest fountainhall]

or am I being cynical again?

 

Well, you may be American but I can't believe you're cynical as well

[Guest Astrrro]

I think that just about everyone who owns a cash business is a tax cheat (I've never owned a business). It's just too tempting. It's easy to rationalize that if everyone is else is "cheating" why shouldn't I cheat too. I think the big cheating comes on sales tax, since sales tax is on revenues while income tax on profits.

 

It's a shame the system is set up so that almost everybody cheats. But I'm at a loss to come up with a fair system with minimal cheating. I guess it toughest to cheat on property tax. One economist champions taxes only on land and not improvements. Taxing buildings is a growth disincentive.

[Guest shebavon]

In the immortal words of Leona Helmsley, "only the poor pay taxes". Shortly afterwords this Queen of Mean was jailed for tax evasion, partly for using a publicly traded company as a personal piggy bank (billing the hotel for work done on the mansion). Senators, Congressmen, businessmen, everyone it seems, tries to do whatever they can to pay as little as possible.

 

Corporations and businessmen routinely, lobby and wine and dine, and offer campaign cash for loopholes.

 

This may be just the USA, but I have a hunch similar scams happen in just about every nation with tax laws.

[Guest MonkeySee]

It's a shame the system is set up so that almost everybody cheats. But I'm at a loss to come up with a fair system with minimal cheating. I guess it toughest to cheat on property tax. One economist champions taxes only on land and not improvements. Taxing buildings is a growth disincentive.

I am at a loss at a fair system. I would think that a flat tax would make sense or perhaps a "value added tax" like many countries have would be better. I don't know.

[Guest shebavon]

A fair tax system can only be implemented by a government based on fairness. That may well be an oxymoron.

 

What is fair to someone who is super rich, will be far different from middle income folk.

 

I like Warren Buffet when he was opposing the Bush tax cuts, reminding all that he did not need one.

 

Too bad his compatriots were not as agreeable.

[Guest MonkeySee]

A fair tax system can only be implemented by a government based on fairness. That may well be an oxymoron.

 

What is fair to someone who is super rich, will be far different from middle income folk.

 

I like Warren Buffet when he was opposing the Bush tax cuts, reminding all that he did not need one.

 

Too bad his compatriots were not as agreeable.

Perhaps Obama will listen to Buffet. Does he have some good ideas on overhauling the income tax laws? I thought Steve Forbes plan of a 15% flat tax was interesting when he made a bid for the presidency. Like Buffet, Forbes does not have to worry about tax cuts. Many people say that the flat tax will hurt the poor. That plan seems more fair than what we have now.

 

[Guest fountainhall]

I thought Steve Forbes plan of a 15% flat tax was interesting when he made a bid for the presidency

 

Hong Kong has a flat rate of just 15%. To protect the really poor, there is a graduated scale up to the first US$13,000 of income or so. But the average tax paid never exceeds that top 15% rate and you don't hear of many people cheating. Corporate rate is around 17%. And Hong Kong has some of the world's highest foreign exchange reserves.

 

Senators, Congressmen, businessmen, everyone it seems, tries to do whatever they can to pay as little as possible

 

According to the old adage, there's no certainty in life apart from death and taxes. Since many try to cheat death, isn't it natural they try to cheat taxes as well?

 

[Guest shebavon]

The devil is always in the details.

 

Under the flat tax, how or do you tax interest and dividends? Inheritances? Gifts? Corporate income?

 

If we need to increase the rate to pay for war or some other folly, and you go up a point or so, once again the poor get screwed. The taxes will always hurt a $40,000 per year person much more than one making $1,000,000 per year, even at a flat rate.

 

Wealthy people benefit much more than the poor. They have more investment than the poor person for the government to defend. How many houses do the McCain's have? They own more businesses as well. Defending the local tailor shop costs a lot less than defending Goldman Sachs of Ford.

 

It's only fair that the more you earn and have, the higher tax rate you pay.

 

 

 

 

[Guest fountainhall]

Under the flat tax, how or do you tax interest and dividends? Inheritances? Gifts?

 

I realise shebavon's question was not about Hong Kong. But if you're interested, Hong Kong does not tax these items.