Bitcoin Forum
September 15, 2019, 08:57:45 AM *
News: Latest Bitcoin Core release: 0.18.1 [Torrent]
 
   Home   Help Search Login Register More  
Pages: [1]
  Print  
Author Topic: Sharper tax focus on small businesses, cash economy  (Read 641 times)
edward222
Full Member
***
Offline Offline

Activity: 166
Merit: 100


View Profile
November 13, 2015, 10:07:53 AM
 #1

Credit to: Tax News : Sharper tax focus on small businesses, cash economy

Quote
THE South African Revenue Service (SARS) is planning to pay more attention to ensuring that medium and smaller companies, and those in the “cash economy”, pay their taxes. This comes after several years in which the focus has been mainly on tackling non-compliance in the large business sector.

SARS group executive Randall Carolissen said the revenue service would shift some of its attention to the cash-based economy and medium and small companies because “we have seen considerable churn in that segment in the levels of compliance and the levels of payment, and we have seen some inexplicable behaviour”.

SARS is busy with a range of initiatives to close gaps in the tax system, particularly the base erosion and profit shifting initiative that tax authorities are pursuing globally. However, PWC director Kyle Mandy said although there was still a significant “tax gap”, the base erosion and profit shifting was not where the tax gap is — rather it is with small and medium-sized businesses and the cash economy.

hhhmm Your thoughts guys?
1568537865
Hero Member
*
Offline Offline

Posts: 1568537865

View Profile Personal Message (Offline)

Ignore
1568537865
Reply with quote  #2

1568537865
Report to moderator
1568537865
Hero Member
*
Offline Offline

Posts: 1568537865

View Profile Personal Message (Offline)

Ignore
1568537865
Reply with quote  #2

1568537865
Report to moderator
1568537865
Hero Member
*
Offline Offline

Posts: 1568537865

View Profile Personal Message (Offline)

Ignore
1568537865
Reply with quote  #2

1568537865
Report to moderator
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
pitham1
Legendary
*
Offline Offline

Activity: 1232
Merit: 1000


View Profile
November 14, 2015, 03:49:10 AM
 #2

As economies tend to develop, there will be a natural shift from the cash economy to a cashless economy. The South African revenue authorities don't have to worry too hard about this.

In any case, I don't think they are looking at Bitcoin at all.

Amph
Legendary
*
Offline Offline

Activity: 2226
Merit: 1003



View Profile
November 14, 2015, 07:37:25 AM
Last edit: November 15, 2015, 08:43:13 AM by Amph
 #3

i think they have a long way to regulate something like bitcoin and prevent evasion which are occuring in many other place already , let alone africa with their ancient infrastructure

they are lucky that right there bitcoin is not very popular, so maybe there is no tax evasion for the time being
pitham1
Legendary
*
Offline Offline

Activity: 1232
Merit: 1000


View Profile
November 15, 2015, 04:46:09 AM
 #4

i think they have a long way to regulate something like bitcoin and prevent evasion which are occuring in mny other place already , let alone africa with their ancient infrastructure

The absence of infrastructure is not always bad. You can "leapfrog" to a better technology.
Lot of areas in Africa don't have traditional wired telephones. However, they now have access to mobile telephones.
Similarly, they might not have bank accounts but m-pesa is a hit.

Fraxinus
Legendary
*
Offline Offline

Activity: 1274
Merit: 1000



View Profile
November 15, 2015, 07:59:41 AM
 #5

They can't regulate such a thing as bitcoin so it's fair to say it won't happen and won't have much success.

pitham1
Legendary
*
Offline Offline

Activity: 1232
Merit: 1000


View Profile
November 16, 2015, 02:56:28 PM
 #6

They can't regulate such a thing as bitcoin so it's fair to say it won't happen and won't have much success.

They are just starting to monitor the "cash economy".
It will certainly be easier to monitor bitcoin transactions. The blockchain is essentially a ready made ledger. Smiley

RustyNomad
Sr. Member
****
Offline Offline

Activity: 336
Merit: 250



View Profile WWW
November 16, 2015, 03:17:50 PM
 #7

Its about time they start doing this as cash only businesses are flourishing and hardly any of them pay taxes.

We all hate taxes but what is even worse than paying taxes is to see others who do not, resulting in your own tax burden increasing as the government has to find ways to increase their revenue and this usually means increased taxes.

For many there is no way past taxes as it either gets deducted directly from your salary and or you work in a sector and or industry that is already well regulated so little chance of getting away with not paying and or paying less than what is due. So in order for taxes to be 'fair' everybody have to pay their dues. If they do, it might result in the overall tax burden decreasing [wishful thinking].

I read an article awhile back on the taxes in South Africa where they analysed how many were paying how much and it was crazy. I will see if I can dig it up. According to that article, and I speak under correction, something like 2% of the taxpayers contribute about 75% of the tax revenue. So clearly there is a major problem.

RustyNomad
Sr. Member
****
Offline Offline

Activity: 336
Merit: 250



View Profile WWW
November 16, 2015, 03:24:08 PM
 #8

Here is some links and quotes from those links...

Quote
Therefore, based on this adjustment, approximately 3,2 million people were responsible for payment of 99% of all income tax in 2010/11. Approximately 2,1 million people paid 92% of all income tax and 1,4 million people, adjusted from 1,25 million, paid 82% of all income tax.

http://www.mises.co.za/2012/03/how-many-taxpayers-are-there-really/

A very interesting read. So out of a population of 50/60 million 2.1million, or about 3% paid 92% of the taxes.

Quote
Actually, only 3,3 million taxpayers pay 99% of all income tax, while only 2,3 million pay 93% and 1,5 million are responsible for 84% of income tax.

http://www.moneyweb.co.za/archive/less-taxpayers-than-sars-reports-solidarity/

First article was from 2012 and second from Feb 2013.
zenitzz
Hero Member
*****
Offline Offline

Activity: 560
Merit: 500


View Profile
November 16, 2015, 09:22:19 PM
 #9

Here is some links and quotes from those links...

Quote
Therefore, based on this adjustment, approximately 3,2 million people were responsible for payment of 99% of all income tax in 2010/11. Approximately 2,1 million people paid 92% of all income tax and 1,4 million people, adjusted from 1,25 million, paid 82% of all income tax.

http://www.mises.co.za/2012/03/how-many-taxpayers-are-there-really/

A very interesting read. So out of a population of 50/60 million 2.1million, or about 3% paid 92% of the taxes.

Quote
Actually, only 3,3 million taxpayers pay 99% of all income tax, while only 2,3 million pay 93% and 1,5 million are responsible for 84% of income tax.

http://www.moneyweb.co.za/archive/less-taxpayers-than-sars-reports-solidarity/

First article was from 2012 and second from Feb 2013.
We need to make an easier path to citizenship... Set up a system to register all that are here who are not citizens and tax their incomes. If they can pay taxes and live without public assistance and commit no crime for 3 years then make them permanent citizens.
countryfree
Legendary
*
Offline Offline

Activity: 2254
Merit: 1023

Your country may be your worst enemy


View Profile
November 16, 2015, 11:30:00 PM
 #10

Poor hunters. They're not smart enough to catch Apple, Google and all the big firms which are the largest tax evaders in the world, so they go after the small fish. Long live cash! Long live BTC!

There's a lesson here. If you're small, or slow, or dumb, you'll end up in a trap.

If you're looking for a trading/lending place,
better avoid Poloniex, as it socializes losses.
Learn more about it on this topic.
pitham1
Legendary
*
Offline Offline

Activity: 1232
Merit: 1000


View Profile
November 17, 2015, 01:05:03 AM
 #11

Poor hunters. They're not smart enough to catch Apple, Google and all the big firms which are the largest tax evaders in the world, so they go after the small fish. Long live cash! Long live BTC!

There's a lesson here. If you're small, or slow, or dumb, you'll end up in a trap.

There are efforts being made globally to go after the big guys too.  Smiley

http://www.wsj.com/articles/crunchtime-for-global-tax-avoidance-push-1443376341

Nearly 50 governments are set to agree this fall to a new set of rules to clamp down on tax avoidance among multinational corporations. Their chance of success, however, is unclear.

If the rules work as planned, they will help ensure big companies pay tax on profits where they are earned, boosting revenues for governments, particularly in larger countries. Advocates say the stricter rules will make for fairer competition between small and large companies, since the latter gain an advantage by being better able to avoid tax.

The international effort was launched in 2012 as governments struggled to contain a surge in deficit-spending that followed the financial crisis and the global recession.

Pages: [1]
  Print  
 
Jump to:  

Sponsored by , a Bitcoin-accepting VPN.
Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!