Cyprus-Forum.com

by **Pyrpolizer** » Mon Jan 03, 2022 6:54 pm

If we distinguish capitalism, from free market economy, then the problem with capitalism is the unecessary piling of wealth because of human insecurity. The more someone piles up the more secure he feels.
Some humans pile up as if they would live for ever. Sometimes what they leave behind could be enough not only for their children but even for their grand grand grand children to survive without having to work a single day...
What's the solution to this paranoia?
Simple,
SET AN UPPER LIMIT TO WHAT ANYONE MAY INHERIT.

This limit should be calculated based on what income the deceased has been declaring in his tax forms, as well as what part of that he was declaring in support of each heir.
The idea is to pass maximum wealth to each heir, so that each could live on same standards he used to, for the rest of his life. "Life" could be set to 100 years.
Donations to heirs before anyone dies should be strictly recorded, so that they would never exceed the limit.

This could easily apply on inheritances of real estate, Companies and shares, farms, and Cash deposits.
More difficult to apply on jewelry, precious metals, works of art, cash kept in vaults etc.
And nearly impossible on cyptos.

But it could make a good start.

NB. Notice the connection between one's income tax form and what part of his wealth he can pass to his heirs.
Now if the heirs are no longer supported by the deceased then the maximum inheritance could only be some fixed amount of immovable and some amount of cash. Certainly not everything.

by **Lordo** » Mon Jan 03, 2022 7:55 pm

That will not solve anything as they tend to set up trust funds in countries with low or no corporation tax and get by them.

There is only one way. Tax the income and set the bar high so those who are honest can be excluded with a cap, above which turnover gets taxed.

It is the only way. You make a sale, you pay the tax.

by **Pyrpolizer** » Mon Jan 03, 2022 10:12 pm

Lordo wrote:That will not solve anything as they tend to set up trust funds in countries with low or no corporation tax and get by them.

It's not about taxing hem. It's about inheritance prevailing money creating more money for eternity through inheritance for just a handful of people. If they move all their assets abroad there won't be any inheritance in this country. This will prove devastating for all capitalists.

There is only one way. Tax the income and set the bar high so those who are honest can be excluded with a cap, above which turnover gets taxed.

It is the only way. You make a sale, you pay the tax.

This is already in action through VAT, which actually taxes spending. The rich do spend their money, or the heirs will one day. They will be taxed on their spending, unless of course they spend it all on heroin.
But let's assume they won't be allowed to increase prices to absorb this "Lordo tax"
What if the "Lordo tax" is higher than their profit?

by **Lordo** » Mon Jan 03, 2022 10:33 pm

It will not work.

They will move their profits to places where they are not taxed and will distribute them there in the form of a trust fund and it will be out of reach of the HMRC for any form tax.

Clearly you do not understand the first thing about VAT. It is designed to make everybody pay whether they are earning money or not. The unemployed people pay VAT. On the other hand, the corporations register for VAT. SO at the end of each month they reconcile the VAT they charged for the Vat they have been charged by their suppliers. If they have received more VAT than than have paid out they pay the difference to HMRC. And if they have paid more money out in VAT than they have received from their customers they get a refund there and then. There is so many scams with this where people on paper pay millions in VAT to a ghost company and claim it back.

There is even a legal scam. There is a flat rate 12% VAT system where a person can charge 20% to their client, only pay back 12% to the HMRC and keep the 8% with the condition they do not claim any VAT back from HMRC any VAT they have been charged. Clearly some companies do not pay much VAT because of the nature of their business so they make a tidy little sum by the end of the year. A friend of mine tells me it is enough to pay the corporation tax in ful.

Crazy old world ain't it?

by **Pyrpolizer** » Mon Jan 03, 2022 11:06 pm

Don't be silly, you can't pay millions in VAT to a ghost company and then claim it back.
The company to which you pay VAT has to be registered and provide it's own VAT number.
For large amounts you have to provide their VAT number too and the whole thing is double crossed.

I know very well how VAT works. The only possibility to have a negative net amount due is to be working at loss.

Of course everybody pays VAT, rich, poor, unemployed. It is a tax on consumption. However the poor will mostly buy food, who's VAT is very low, from 0 to 5% (In Cyprus)

You didn't answer my question:
What if the "Lordo tax" is higher than their profit?

by **Lordo** » Mon Jan 03, 2022 11:19 pm

Pyrpolizer wrote:Don't be silly, you can't pay millions in VAT to a ghost company and then claim it back.
The company to which you pay VAT has to be registered and provide it's own VAT number.
For large amounts you have to provide their VAT number too and the whole thing is double crossed.

I know very well how VAT works. The only possibility to have a negative net amount due is to be working at loss.

Of course everybody pays VAT, rich, poor, unemployed. It is a tax on consumption. However the poor will mostly buy food, who's VAT is very low, from 0 to 5% (In Cyprus)

You didn't answer my question:
What if the "Lordo tax" is higher than their profit?

If you knew how VAT works you would not have said we already have a system of collecting TAX from corporations through VAT. Never mind.

Here is a report of a VAT scam.

https://www.theguardian.com/uk/2012/jul/08/carousel-tax-fraud-mobile-phones

by **Maximus** » Tue Jan 04, 2022 12:01 am

You are coming from a mindset of scarcity and lack,

You are focused on what others have got instead of going out and getting yours.

As if there isnt enough to go around.

That is why you are Bordos (not Bezos).

:roll:

by **Lordo** » Tue Jan 04, 2022 12:10 am

Maximus wrote:You are coming from a mindset of scarcity and lack,

You are focused on what others have got instead of going out and getting yours.

As if there isnt enough to go around.

That is why you are Bordos (not Bezos).

Back to your shithole boy.

You actually think I am poor which wish why I am against these blood suckers.

In anycase the discussion here is not how much they actually earn, it is how little they pay their people and how they poison our life whether it is CO2 in the air or arsneic in the water or dumping oil in the sea to clear their tankers. And of course how not only do they not pay any taxes they actually claim money back from the government.

Get with the program boy. But for you toilet brush is the word. Get on with it.