Re: French tactics
JSW, re #7.
John,* *Corporate tax cheating is not as prevalent*as people believe.* A company can buy a building that has a lifetime of say 30 years, we will say as a simple example they pay 30,000 pounds for it, if they wrote it off over 30 years they could deduct 1000 pounds a year for depreciation of a fixed asset which would lower their profit and they would pay less tax, what's even better the*governments under the international rules of accounting allow a corporation to accelerate depreciation, let's say to 10 years, that gives you a write off of 3000 pounds against your corporate*tax. I've put this as simply as I can and it is*not*an actual word for word quotation of the tax law.
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A shipping corporation is not only writing off ships, but also any asset like cars, equipment,*crains, office equipment, and many things*are written off for tax purposes and never replaced.* There are certain rules and recapture*laws that allow the tax man to regain part of the written off asset if it is sold.* I'm not going to go further*on this as I am trying to keep it simple and will be confusing the subject.
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I personally*do not under or overstate anything on my personal income tax, as with my retirement interest and the crappy returns banks have been paying the last few years have minimize my taxable income, so fudging*wouldn't gain me much. However, it would be hypocrisy*if I cheated, yet condemned corporations for cheating.* I deduct every penny I can that is legal to pay the least income tax I have to, so I can sleep nights and undergo a tax audit if called upon.
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I had the same rule when I was employed.* I was president*and CEO of a multinational*industrial catering company for seven years, and the chief accountant and I were liable if the company was audited.* And prior I was managing*director of an Iranian*registered company for 3 years and I certainly didn't want to be found as a tax cheat there and end up in their prison or any prison for that matter. Who wants*to go to prison for somebody else's*money?
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Cheers, Rodney
Rodney David Richard Mills
R602188 Gravesend