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Tax Evasion

Discussion in 'General Chat' started by SirRumpole, Jun 28, 2018.

  1. SirRumpole

    SirRumpole

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  2. Value Collector

    Value Collector

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    If he is guilty, Jail him.

    Australia’s tax system is pretty fair, so I have no problem with being harsh on blatant tax cheats, they not only rip the rest of us off, but they also risk making the ato treat us good guys more harshly.

    It’s simple, make as much money as you can, but pay your taxes it’s funding good things.
     
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  3. moXJO

    moXJO menace to society

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    Phoenixing has been around for a while. If you're a subby in the building game then some prick has more than likely stung you.
    Its small business that would get hit by phoenixing the hardest.

    Hope they get done hard
     
  4. willy1111

    willy1111

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    Of course everyone does their best to minimise the tax they pay...if they're don't ...they want their head read...at least according to the late Kerry Packer...why give extra to the government to mismanage and waste inefficiently!

    The clients of this guy, probably just thought they'd come across a clever guy who could help them to minimise their tax legally.
     
  5. willy1111

    willy1111

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    Yeah all 10,000 plus pages of tax legslation.

    Seriously they could do a heck of a lot to simplify it...but they won't...coz keeping the complexity keeps shiteloads of people in jobs.
     
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  6. luutzu

    luutzu

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    If they simplify it, where's the loop holes going to go? Out in the open? :D
     
  7. basilio

    basilio

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    Phoenixing companies so that the debts and liabilities are disappeared but the principals just continue operating has been around for a long time. The deal about this story is identifying the legal and accounting structures and the operators that have been established to enable phoenix companies to undertake simple, safe transformations. That takes skill and practice.

    So if they are serious about this investigation they should be able to
    1) Put away for at least 15 years the organisers of these phoenix systems
    2) identify and then follow up the people who used the process and bankrupt them to recover the lost wages, creditors and taxes owed.

    Should we start looking for flying pigs ?
     
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  8. Tisme

    Tisme Apathetic at Best

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    What a joke. Builders do this all the time.
     
  9. moXJO

    moXJO menace to society

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    House and assets in the wifes name, family all on high wages, nothing in the company directors name except basic transport vehicle. Can't get much out of them.
    And they are usually back in business after 4 years while you are still trying to recover money (maybe cents in the dollar).
    I thought there was some changes a few years ago on phonexing? Sure they kicked up a stink and were going to change something. I think nick xenophon was advocating change.
     
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  10. SirRumpole

    SirRumpole

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    Hence the reported arrests ?
     
  11. gaius

    gaius

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    and one step away from communism
     
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  12. Darc Knight

    Darc Knight Investor not Trader

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  13. basilio

    basilio

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    This really puzzles me... It appears as if the Tax Office is saying the have lost $8.7b last year because of overstatement of home expenses, dodgy work claims and tax not paid on some cash in hand work. It doesn't appear to make any mention of larger corporate tax evasion either from local companies or by multinationals so they are a separate case.

    Lets pick a figure of 5 million wage and salary earners with incomes between 35k and $100k. If for arguments sake every one has fudged their tax returns to inflate their nominal deductions by $1200 a year they would each get an extra tax refund of about $500. Total at most $2.5 billion.

    From my experience a "normal" PAYE tax payer in a paid position is struggling to find any plausible tax deductions beyond union fees, a work uniform, maybe a few dollars for "work expenses" . So that hypothetical of $1200 of dodgy deductions is even less plausible. So where is this theoritical $8.7 Billion ?

    If one was looking at the creative accounting around rental properties ... perhaps. If one was looking at earners from $100k to infinity perhaps some more creative accountancy around business costs, property investments whatever. But suggesting that the vast bulk of wage and salary earners earning under $100k are somehow undermining our tax base seems a very long bow.

    https://www.ato.gov.au/About-ATO/Re...xation-statistics-2015-16/?anchor=info1#info1
     
  14. SirRumpole

    SirRumpole

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    Yes, $8 billion seems pretty high. As a PAYE earner I can't remember any deductions I could write off on my tax.

    In addition, I think you are required to keep receipts for everything you claim for so it seems that a requirement to include these with each tax return could cut out a lot of over claiming.

    If you include the cash/barter economy though, that's a lot harder to police.
     
  15. basilio

    basilio

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  16. SirRumpole

    SirRumpole

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    Remember when Rudd/Gillard wanted those claiming car expenses to keep logbooks and the stink created by the Libs and their lackeys the shock/jocks ?

    Unreasonable incursions on people's right to avoid taxes they said. :rolleyes:
     
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