In the article, Switzerland and Singapore are named as the traditional place where the super rich 'hide' their wealth. Both countries are supposed to be least corrupted in the world. Seems like somehow we have a legalised way of being corrupt and getting away with it. Just think, what makes it fair for our Ministers to be paid millions by self appointing a panel to determine their wages and hundreds of thousands were paid to the HR company assisting the panel.
The former works within legal framework while the latter does not.
Tax evasion is a crime and there is a legal avenue for governments to pursue the guilty.
Tax avoidance is not a crime - nobody is obliged to pay more tax than what is legally obliged.
Much of the tax code in most countries are not written in the most readily understandable manner - not only is this a source of confusion to the laymen, it also provides opportunities for accountants and lawyers to offer their services to enable wealthy individuals and corporations to reduce their taxes.
Countries bemoaning the loss of potential tax revenue should first look at their own tax codes.
Super rich evade tax because they know some bankers who did it for them. That is also the reason they are rich. Hmmmm.. I wonder whether our rich Ministers also do the same? I don't expect them to put in Fix Deposit and wait for retirement...
In the article, Switzerland and Singapore are named as the traditional place where the super rich 'hide' their wealth. Both countries are supposed to be least corrupted in the world. Seems like somehow we have a legalised way of being corrupt and getting away with it. Just think, what makes it fair for our Ministers to be paid millions by self appointing a panel to determine their wages and hundreds of thousands were paid to the HR company assisting the panel.
ReplyDeleteA very funny video commentary on taxing the rich.
ReplyDeleteWell worth the time.
Just ignore the advertisement in the first 10 seconds.
http://www.colbertnation.com/the-colbert-report-videos/341481/july-28-2010/the-word---ownership-society
But is it tax avoidance or tax evasion?
ReplyDeleteThe former works within legal framework while the latter does not.
Tax evasion is a crime and there is a legal avenue for governments to pursue the guilty.
Tax avoidance is not a crime - nobody is obliged to pay more tax than what is legally obliged.
Much of the tax code in most countries are not written in the most readily understandable manner - not only is this a source of confusion to the laymen, it also provides opportunities for accountants and lawyers to offer their services to enable wealthy individuals and corporations to reduce their taxes.
Countries bemoaning the loss of potential tax revenue should first look at their own tax codes.
Super rich evade tax because they know some bankers who did it for them. That is also the reason they are rich. Hmmmm.. I wonder whether our rich Ministers also do the same? I don't expect them to put in Fix Deposit and wait for retirement...
ReplyDelete