I wonder if tax accountants went to the same university as the people who figured out how to run Labours Art Auctions?
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I know a guy who pumped up a manufacturing business on the stock market, it never made any profits but he still came out with a windfall when his shares were paid out by more committed investors. What did he partly invest this into? A dairy farm, despite never having run one before. It was just a place to park untaxed profits, for more untaxed profits later.
To be clear - the Sarcasm filter is ON.
You could also argue that there are lot of families on WFF who are effectively middle class beneficiaries because effectively they aren't paying any taxes (apart from consumption taxes) and consuming far more services from the government than they contribute and have their net worth tied up in an unproductive asset (the roof over their head) that we would hand out an exemption to any proposed CGT. The net result is that effectively dodge income tax for a couple of decades, see their net worth climb for a couple of decades, receive a disproportionate level of spend esp in health and education and then get to receive universal super. And potentially some of the pittance they contribute to the tax system in the form of GST will be substantially reduced because of foreshadowed exemptions on GST on fruit and veges, milk and other foodstuffs.
And at the end of it all, the offspring of these parasites will get a tax free transfer of their parents net wealth just in time to for them to potentially receive their two decades of WFF Income tax holidays.
All of them are parasites on the backs of the PAYE paying middle class singles or childless couples paying income taxes without relief.
Sarcasm Filter Off.
And it is purely coincidental that the UN's Climate Change conference is coming up in a months time?
But what about the good news. They have found loads of the missing polar bears. Like sheep, 230 of them were just spotted on Wrangel Island chowing down on a delicious dead Bowhead Whale.
I wonder if the UN conference will be talking about how Polar bear population numbers have now been revised from 22 - 31,000 to 23 - 33,000. Remember what Al Gore said (I do) " a new scientific study shows for the first time they're are finding polar bears have actually drowned" due to shrinking ice caps and leading to the inevitable extinction of this animal. Seems like climate change is increasing helping the increase in polar bear numbers - and you know the mantra" "what about the children. Isn't it great they will get to see polar bears!
I'm going to have ask the Tax experts here how you make a profit on land that is devaluing. From Quotable Value a couple of months ago:
"Land values were being increasingly affected by demands for better water quality, according to Rural Value, an arm of Quotable Value.
"Sales volumes over the summer season have been lower than previous years in many farming sectors including dairy and sheep and beef, and this has impacted on rural property values as the market is relatively subdued," said Rural Value general manager Richard Allen.
"Farm owners are facing a number of compliance changes including fresh water management, environmental impact controls such as levels of nitrogen, as well as proposed changes to IRD's farm expenses rules.
"All of this has created uncertainty in the rural land market and this is now being reflected in values, particularly in the dairy farming sector which have continued on a downward trend and are now back to 2014-15 levels in most parts of New Zealand," he said."