Raise taxes on the Rich - in Singapore

[Leongsam]

Presume your company not listed otherwise no profits share price will nosedive. A lot of SMEs behave like this, no profits but owners draw expenses. Good if u don't intend to take it to listings

It's a small private limited company.

 

[enterprise2]

It's a small private limited company.

Hey bros, I don't presume to tell u how 2 run your biz. But if u declare losses year after year, there are consequences. Corp clients will flag u out if they do background fin checks, u sure as hell can't borrow monies, u have to make up shortfalls with your own investments and u sure as hell won't get good valuations if u choose to exit. Anyway I am talking about the rich in Singapore and they sure as hell not paying 28%!

 

[shctaw]

Hey bros, I don't presume to tell u how 2 run your biz. But if u declare losses year after year, there are consequences. Corp clients will flag u out if they do background fin checks, u sure as hell can't borrow monies, u have to make up shortfalls with your own investments and u sure as hell won't get good valuations if u choose to exit. Anyway I am talking about the rich in Singapore and they sure as hell not paying 28%!

There are lots of companies declaring lost year after year listed in SGX.

Usually 3 digit company.
$0.01 to $0.09 per share.

 

[Kinana]

There are lots of companies declaring lost year after year listed in SGX.

Usually 3 digit company.
$0.01 to $0.09 per share.

Its ok, as long as they employ lots of people and pay them salaries.

 

[ray_of_hope]

There are lots of companies declaring lost year after year listed in SGX.

Usually 3 digit company.
$0.01 to $0.09 per share.

This is true. Management of these companies know that their companies will never be profitable again but they will in fact go back to shareholders for more funds through a rights issue. All they want are funds to keep themselves and their staff employed.

 

[cass888]

Fuck that. The poor are poor not because the rich are rich. Taxing the rich to handout to the poor is just punishing the productive and rewarding the unproductive.

The US has done it. Nows our turn. It's time the rich bear a bigger burden and contribute more to the nation's coffers so that it can then spend more on social welfare. How about it? Those households with $400k annual income and above.

 

[Leongsam]

u have to make up shortfalls with your own investments and u sure as hell won't get good valuations if u choose to exit. Anyway I am talking about the rich in Singapore and they sure as hell not paying 28%!

I don't have any shortfalls. The company is cash rich, has no debt and has a consistent and growing turnover. You don't need to show profit to sell a company for a tidy sum and any corporation that does a credit check on my company will receive a glowing review of how my accounts are managed.

Google bought youtube for $1.65 billion despite the fact that the video sharing start-up had never made a cent.

Anyone who buys my company will be interested in the quality and diversity of my customer base. They'll understand perfectly what I'm doing when they perform due diligence. It won't make a scrap of difference to the value of the company.

I have sold 4 companies in the course of the last 20 years and profitability has never been a key factor in any of the deals. It matters only when you're going public and you want to put on a fancy dog and pony show so a killing can be made on the opening day from amateur investors.

 

[Bollocks]

I feel rich all the time.. dunno why... oh ya, whenever i look at my cpf savings...

 

[shctaw]

Fuck that. The poor are poor not because the rich are rich. Taxing the rich to handout to the poor is just punishing the productive and rewarding the unproductive.

Found a rich person....

100% agree....

 

[mojito]

Yes. An alien tax would be most delightful. Raise the levies I say!

 

[watchman8]

The corporate tax rate in NZ is 28%. This means that for every $1000 profit, I have to pay $280 to help support some loser low life scum who can't be bothered to get a damned job because they prefer to help themselves to money extorted from successful and hardworking members of society.

I therefore do my best to minimise my tax burden by increasing company expenditure to reduce my tax exposure.

For example, If I go for a holiday, I'll arrange to meet a few potential customers at the same time so I can write off the air fare and a portion of the accommodation expenses, car hire, meals and so on.

Before the end of each financial year, I'll try to spend as much of my profit as possible on causes that I support and on people I know who deserve the money. My aim is to achieve ZERO profit before accounts close so I don't have to pay a single cent to those damned welfare recipients. If they want money, they should work for it just like everybody else. If they can't be bothered, they should be left to face the consequences of their own tardiness. They certainly aren't getting a freakin cent from me.

No need to expense so much. Register your firm in BVI or cayman, book all profits there. Then bring the money into sinkieland without needing to pay any tax. That's how the rich in sinkieland avoid paying anything. And before you go cursing at the poor in sinkieland, do note that majority chunk of govt spending goes to funding foreigners education, defense buying USA hardware, super high salaries of admin service and ministers etc. only less than 5% of total annual budget goes into supporting the useless poor.

 

[cass888]

Best is a flat $10,000.00 tax across the board. Why should some people get free street lamps and police services while others pay a pound of their flesh?

Yes. An alien tax would be most delightful. Raise the levies I say!

 

[Leongsam]

No need to expense so much. Register your firm in BVI or cayman, book all profits there. Then bring the money into sinkieland without needing to pay any tax. That's how the rich in sinkieland avoid paying anything.

It doesn't work that way in NZ which has a world wide tax regime. Even if profit is declared offshore, you still need to pay your taxes.

I could play the game of hiding income but that's tax evasion not tax avoidance and it's a route I don't want to take simply because the overheads involved in keeping the money hidden for a small operation like mine simply aren't worth the trouble or the stress. My lawyers and accountants would end being paid more than the taxes I'm supposed to pay.

 

[mojito]

Best is a flat $10,000.00 tax across the board. Why should some people get free street lamps and police services while others pay a pound of their flesh?

Think of it this way. If police services were like insurance against theft, robberies, kidnappings and other nasties, naturally the more one has to lose, the more one has to pay for the insurance premium. All protection rackets work this way. Why should we do things differently in Singapore?

 

[The_Hypocrite]

Dear frens,

after reading what has been said by the pro tax and the anti tax lobby, I will now contribute my 2 cents on what I think Singapore should implement so that it will not fuck up the economy and the people. I also find Singapore is in a good position to implement a better policy what what Ang mor land has,,,and a much better policy compared to 3rd world countries to make singapore a better place for singaporeans. Whatever tax system we use, we must not penalise the middle classes and the working class,,they should be encouraged to work harder and get rewarded not like in ang mor land, where u work harder to pay trailer park trash for them to buy drugs and booze.


Ok I just feel that in any country, progressive tax will not work if its to have a welfare system design to feed the poor and the useless. A minimal welfare system is still the best. I reckon the old system of HDB and CPF and low cost environment is the best like in the 80s. The current system, general cost for all is too high. Like HDB, public transport, business rentals etc. However this problem at this stage is very hard to tackle due to PAP rent seeking behaviour and PAP knows it can rent seek all it wants without consequences.

Progressive Tax:

This has shown not to work as in ang mor lands,,,the rich just run away and go to tax havens. And such a rule never catches those it intends to catch but catch the middle class because they cant hide their earning. Rich always find loop holes so I really thing it is pointless. In Ang mor lands,,,,the middle class suffers alot as they pay the highest percentage in tax compared to the rich. and they cant run and hide.

Also to have a welfare state,, in ang mor lands, those that get welfare are mainly indigenous ppl (australia), single moms, trailer park trash, disabled etc. All these welfare does is give them excuses to buy booze, drugs, damage public housing etc. If such people were all round up and shot,,automatically the budget will be in surplus, crime rates will go down etc. All good points, not much bad points.

My alternative is like for COE to be tax progressively. We could implement the luxury car category. The Ferraris etc get taxed at a much higher rate. For the rich getting a 2nd car and above, they pay a higher rate too. For example 50 % surcharge, than 3rd car 75 % surcharge etc. COE for luxury cars are bought by the rich,,they dont want to pay they dont buy,,,,or they buy non luxury car category which is highly unlikely as they want face..and since they are rich,,what is 1 million for a car?

The proceeds will go into upgrading public transport,,so that there will be minimal incentive to get a car,,,


Tax on FTs

Singapore has not become the employment capital for foreigners except its own people. The reasons given is, locals want high pay, dont want to work etc etc. To banned all FTs will throw the economy backwards so I propose the following.

All low value labour intensive work can be given to FTs to do. For example, F&B etc,,no singaporean will want such work right? the pay is always minimal even in ang mor land. Locals will not want to wait tables etc,,so might as well give it to FTs. Cleaners, labourers etc,,can be given to FTs too,,,However the PMET category must be protected at all cost and FTs going into this PMET category is meant to compliment and not replace. which is what is happening now. For any FT hired into this category, they do not contribute CPF, they get tax,,why give them CPF and when they leave they get the money back?? We locals cant even touch the CPF money.

The next point is any FT hired be it man or woman in PMET category the employer will have to pay an additional tax of 30%. So if lets say the PMET is paid $5000/mth. FT pay 20% tax or 30%, the employer pay 30% tooo. For local, they just have to pay the employer CPF contribution. To me, PRs are FTs so they get hit with the FT tax tooo. This will counter the disadvantages of the local getting jobs due to NS liability, and all other disincentive from putting locals 1st.

Also come on,,NS need to be reformed,,,we still need 2 year NS meh? Still need dunno how many high key low key reservist shit meh? We are Israel is it? get wack by neighbours all the time? NS is a monster that is used to feed the military machine and all the fucking useless Generals and Singapore Technologies etc,,,we dont need to feed this damn monster forever.

just my rants and feel free to add comments etc,,,

thanks for reading

 

[Maximuz]

This is true. Management of these companies know that their companies will never be profitable again but they will in fact go back to shareholders for more funds through a rights issue. All they want are funds to keep themselves and their staff employed.

Funny, I was telling my dad the exact same thing a couple of days ago. Issuing rights and warrants after senior management has run out of funds visiting massage parlours, ktvs, or sending their wives to spa resorts.

My ex-gf also worked as an accountant for one of those listed companies, the boss just kept throwing whatever receipts he had for claims, even when they were NETs receipts that had no item description.

 

[Leongsam]

Funny, I was telling my dad the exact same thing a couple of days ago. Issuing rights and warrants after senior management has run out of funds visiting massage parlours, ktvs, or sending their wives to spa resorts.

My ex-gf also worked as an accountant for one of those listed companies, the boss just kept throwing whatever receipts he had for claims, even when they were NETs receipts that had no item description.

Entertainment is the catch all. I have yet to see a company that does not abuse this line item. Directors use it to entertain themselves. The customer is there merely to facilitate the legal allocation of expenses. :p

 

[oioi]

i agree 100%. Singapore should be introducing those investment taxes.

Curious - why doesn't Singapore have capital gains tax? This would discourage speculation which is what we want anyway correct?

Rich people are rich for a reason. They usually made their money from business, stock markets, properties etc.

Lot of investment they do is tax free. Example Singapore property profit has no capital gain tax.
Stock market also no capital gain tax unless you book your profit under a company name.

When come to business ; there are 101 ways to "avoid" tax. (not invading tax, avoid is legal) Example reducing of finish goods; mark down closing stocks value etc. Business can declare loss to bring forward the loss into new financial year.
Rich people even can claim back 7% GST on anything they buy. (example iPhone, Macbook Pro)
Hence whatever rich buy; it is cheaper than what the poor/middle class pay.

Tax itself is design to tax the masses. (middle class and poor)
Increasing tax will cause middle class to be poorer as they cannot avoid tax due to "salary" the company declare for them.

A tax increase will not hurt the RICH at all. It only hurt those whom are "not so rich"

 

[Charlie99]

I think U can take the scholarship without the money. That is if they want to.

The President's Scholarship is in name, but without any monetary amount.

Those who wish to receive the money, have to opt to receive OMS, SAFOS, SPFOS, etc.

 

[eatshitndie]

Look I never said to follow exactly the US. I just said let's raise taxes on the rich in Singapore. What's wrong with this?

well, you said "the us has done it. nows our turn." not exactly what you said above. when challenged on facts, please retort accordingly and not twist and turn like a snake in a pit of slimy oil. before you use the us fiscal cliff avoidance as a sorry excuse, do some research first.