Discussion on:

Avoid unpleasant tax surprises for your IT consultancy

Comments

Add Your Opinion

Join the conversation!

Follow via:: RSS; Email Alert

Community Preferences

View:

Please Select

Show:

Please Select

0 Votes

+ -

Moderator

Sorry I have to disagree here

HAL 9000 Updated - 28th Jun 2011

Audits by the Tax Man are worst thing you can undergo.

The first year I had this business going I was audited. Took two weeks to prepare then for 3 days I and the Accountant where in the Tax Office with a Please Explain for everything.

The end result was it cost me several thousand $ to have the tax man write out a cheque for 10 cents which I had overpaid.

Sorry but even without taking into account loss of Income which is standard for Audits it was a very poor return on investment and not something I want to undergo again.

OH and here it costs the Tax Man $4,500 to write out that 10 cent cheque and post it out to me. Personally I didn't want that cheque or the problems that went along with getting it. wink

Col

0 Votes

+ -

wow, talk about waste

pgit 29th Jun 2011

All this crap is a complete waste, the amount of paperwork required, the manpower, the gray and fuzzy "enforcement" of grayer and fuzzier "laws" and regulations... imagine the economy without this huge tax system-induced overhead.

If they ran the government like they're supposed to, you'd rarely ever hear about it. Instead, it occupies the majority of the news, and increasingly every corner of your business, life and mind. It's a parasite, hopefully mankind will evolve beyond this blind statism.

But the immediate future doesn't look good on that score.

10 cents. I'd have framed that check and would tell them I deposited if if they asked.

0 Votes

+ -

Moderator

Unfortantly some people have a tendency to lie

HAL 9000 29th Jun 2011

When it comes to Money Maters and because of that they need the Bureaucracy to catch the cheats.

I???m not actually saying I agree with this but a cousin of mine works for the Tax Office here as a Senior Investigator and about 6 years ago was taken to court for not filing a Tax Return. He argued in Open Court that as he was paying Tax in a Pay as you Earn and he knew the way that the Tax Office worked he was willingly donating the excess tax that he paid tot he Tax Office.

I???m not really sure how the guy being audited felt when the Feds arrived I think he thought OH **** and then they arrested the Investigator and took him away to court.

What made matters worse is that he won the case and now there is no need for Pay as you Earn Tax Payers to fill a Tax Return if they don???t want a Refund.

I personally think that the real reason that he doesn???t fill in any paperwork is that he does that all day and simply refuses to do it when he???s not being paid to. The Wife has to fill in any Insurance Claims and so on, anything that requires paperwork he simply refuses to do. wink

As for that 10 cent Cheque after 16 months I was asked to bank it because it was throwing their Monthly Balances out and it was costing them 10K to find out why the Books didn???t balance every month.

Talk about an expensive mess. grin

Col

0 Votes

+ -

Purchase for resale

smathes 29th Jun 2011

In NY, if you pay sales tax on an item purchased for resale, you can claim a credit for sales tax paid on the purchase when you file your sales tax return. You must keep the receipt showing the sales tax you paid, and if you file a paper tax return, you must attach a copy of the receipt supporting your claim for credit.

0 Votes

+ -

Purchase for transfer in Oklahoma

ylto 29th Jun 2011

I agree completely with your advice that grey areas be researched and answered in advance. Here in Oklahoma I too frequently find myself buying miscellaneous items in support of the technical services I provide. We do not mark up such items, and our state tax office has told us (in writing) that so long as they are used in the furtherance of our work and dont contain a markup there is no need to charge, collect, or remit any sales tax to the state on those items. Dont you love how states vary on these things?