VAT is a money machine for big government in Japan

LONDON, ENGLAND - JANUARY 03:  Shoppers pass a...

For years, I’ve been warning that a value-added tax (VAT) would be a terrible idea. Simply stated, politicians would have no reason to control spending or reform entitlements if they had a new source of tax revenue.

In this video, I explain why this European-style national sales tax is a money machine for bigger government.

via Just as Happened in Europe, the VAT Is Becoming a Money Machine for Big Govenrment in Japan « International Liberty.

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Can you claim VAT back on materials used for accommodation?

English: solar thermal thermosyphon water heat...

We have workers who are collected on Monday mornings and dropped off in Bonnievale on Friday afternoons. As we are a working farm and 30Km away from Bonnievale we have to supply accommodation for the workers whilst they are at work. This is normal.We have built a new workers cottage, re-conditioned one cottage and built a flushing toilet, shower and wash-up area. Installed solar heating and lighting, and cooking facilities.We have claimed VAT on the materials used and Sars say that as we are not charging rental and paying VAT over to them we cannot claim the VAT back on materials.My husbands auditor in Durban said we are entitled to claim the VAT back and my accountants in Dbn say we are not allowed to?What is our position?Sars have said if I give them the Act that covers the VAT that can be claimed then they will accept that. So I have to do their work.Please could you help us on this?

Response by Muneer Hassan CASA, project director, Saica StandardsI had a look at section 12cii and agree that this is an exempt supply hence no input tax can be claimed on direct attribution method.

via Moneywebtax – Can you claim VAT back on materials used for accommodation? – Integritax.

SARS tax amendment for ownership of secondary properties

Tax

Last year South African Revenue Services introduced a tax amnesty covering capital gains tax, transfer duty and secondary tax for all natural persons South African citizens willing to transfer property owned by them in a company, a trust or a close corporation into their own names.The amnesty, it was made clear, would expire in December 2012.

This “enlightened” measure, says Tony Clarke, MD of Rawson Properties, was hailed by the property sector as a breakthrough because the capital gains tax on companies 15% was high and on trusts higher still 20%, whereas by contrast individuals usually pay only ±10% and more importantly are exempt of tax on the first R1,5 million capital gain.

However, there was one major snag: the exemption applied only to property in which the owner “ordinarily resided”, i.e. his primary residence. Second homes, holiday homes, investment properties and the like initially could not be transferred to individual ownership without paying in full the taxes referred to.Now, however, that has all changed. The recently promulgated Tax Laws Amendment Bill allows secondary residential properties to benefit from the amnesty in the same way as primary properties – provided the transfer is set in motion, i.e. not necessarily completed – by December 2012.

Clarke said that there will still be cases in which it might be preferable to hold the property in a company or other legal entity.  He pointed out, too, that the conveyancer’s fee would remain payable.Nevertheless, he said, the vast majority of property owners stand to gain significant tax benefits if they make use of the amnesty before it expires and he advised them strongly to do so.

via SARS tax amendment for ownership of secondary properties – SA Commercial Prop News | Commercial Property News in South Africa

The rich come clean

Punch cartoon (1907); illustrates the unpopula...

JOHANNESBURG – The South African Revenue Service Sars has uncovered thousands of unregistered high-net worth individuals HNWIs following a year-long investigation and has developed a DNA of these individuals that will allow it to discover thousands more.Its countrywide investigation has uncovered 9 300 HNWIs those earning a gross income of more than R7m per year or who have assets in excess of R75m who could be costing Sars R48bn in revenue, see chart. In a press statement released in April, Sars only had about 360 individuals in this income category registered.

via Moneywebtax – Sars uncovers 1000s of missing rich tax cheats – Income tax

If you are rich and under-declaring, come to Fixed Accounting where we legally help you to pay less tax.