Showing posts with the label Tax

A History of more than 4000 years of Taxes, when will we ever learn!

Once upon a time In the early days of so called Human Civilization the Tax base succumbed to an extortionately high intolerable level, which in fact was in the 100% Tax bracket. Not surprisingly the people dominated by it were called “Slaves”. The masters that the Slaves worked for, were the original founding Tax collectors who comprised of various types of Nobles. The Nobles acted on behalf of and reported to the Kings that maintained a dedicated bloodline to keep the wealth and control of people in the family.

Alexander the Great
Then one day seemingly out of the blue to many at the time, came “Alexander the Great”, leader of the mighty Macedon Army. “Low Tax Alex” as he was aptly known by many during this period in world history, proudly announced wide ranging Tax cuts for everybody that supported him without a the need to fight for the territory he desired to control. In reality this meant no more...
Sales TaxesProperty taxesValue-added taxesPriority TaxesStealth Taxes Revenue enhan…

The Chicago "Cloud Tax" an act of desperation

The city of Chicago was once the proud home of Obama, yet today it's falling from fame as the city struggles to make ends meet, factories close down due to the expense of operating and productive people leave en mass to warmer coastal climates.

Any free society would not imagine to pay a form of local tax to stream a simple movie on a service such as Netflix and Spotify, but the city of Chicago has in their wisdom invented such a cloud-based service tax, claiming that it's akin to paying for live entertainment tickets; although in real terms it's clearly not! .

Of course as in most cases in America these days there was absolutely no debate or public hearing over this city "cloud tax" which translates to 9% tax on streaming entertainment like Netflix.

The city administrators in Chicago even had the audacity to claim that the tax is not actually new, as it's a form of clarification and not an expansion of 2 taxes that have long been in effect as follows:

The French Government target foreign owners of holiday homes with a draconian Tax grab

Updated on 12.1.14 from the original article 26.12.12
Owners of holiday homes in France are clearly targeted with punitive Tax rises which were recently introduced by the unpopular and somewhat war hungry President of Francois Hollande (leader of the new Socialist Government). The goal in France is to tax so called wealthy foreigners that supported France in the past, in order to reduce France's significant budget deficit, pay for some costly interventions in Africa (diverting attention from the rising French economic crisis) and paying the for the most expensive (per capita) Health system in Europe. 

The Tax rises affect foreign-owned second homes in the following areas...
Tax on rental income is set recently rose from 20% to 35.5%.Capital gains tax on property sales rose from 19% to 34.5%. What is even worse is that the Tax rise on rental income was introduced retrospectively, as from the 1st of January 2012. The increase in capital gains Tax was applied at the end of July 2012, wh…

Malta, still the best place to do business in Europe

As Perpetual Travellers go, for good reason we tend to take an integrated approach to the work and life balance. Mixing business with pleasure is often necessary for the small to medium Company owner. Shopping around for the most cost effective corporate structure is always wise, especially considering the current global financial climate. Our research in Europe points to Malta as the best place to set up a Company and declare taxes, which we advise all Perpetual Travellers to do, as the days of NO TAX OFFSHORE have simply gone. 
Previously, Cyprus was a strong competitor, however they are playing with the Tax rate these days by introducing the following new Taxes and increases:
A new stealth Tax of 350 euro just to have a Company each year.Increase from 15% to 20% for residents on the dividends.VAT increase from 15% to 17%. All of the above may rise again as austerity hits Cyprus, which will take Cyprus pretty much out of this market at least for new start ups. 
Both Cyprus and Malta…

Look Away or Pay the $5 fee Just for Looking!

Given the financial crisis that has influenced every aspect of our life the last 4-5 years, you have to be creative in order to be successful. Businesses have to go every possible way in order to stand tall and make profit. 
However, creativeness can be tricky, it can bring to success or to a big failure. 
You choose what the case is for Celiac Supplies, a gluten free shop in Brisbane, that posted an image of a sign on its front door getting quickly positive and negative attention as well.

The sign reads:
"Dear Customers,

As of the first of February, this store will be charging people a $5 fee per person for "just looking."
The $5 fee will be deducted when goods are purchased.

That's because there has been high volume of people who use this store as a reference and then purchase goods elsewhere. These people are unaware our prices are almost the same as the other stores plus we have products simply not available anywhere else."
Owner of the gluten free produce sto…

Danger Ahead: Beware of Investing in the Eurozone!

The story of recent unfolding events linked to the Cyprus economic crisis and eventual so called “Bail-In” deal, will now likely play out across Europe and beyond as EU citizens and foreign investors holding deposits within the EU start to contemplate this question “Could it happen to me?”.
In an unprecedented step the Troika (name given to the collection of EU & International money lenders) forced the recently elected Cypriot Government to accept what basically amounts to daylight robbery of depositors accounts within the 2 main Banks of Cyprus (Marfin Popular Laiki Bank and Bank of Cyprus). Everyone with more than 100,000 euro deposited within these 2 Banks will surely lose out in a significant way.

Question is, what will the people of other economically struggling member nations think now? Greece, Spain, Ireland and Portugal already received Bail-Outs and more are possible down the line. Behind EU closed doors it is thought that the Cypriot so called “Bail-In” is a kind of pilot …