Recently, I got a letter from tax office, stating that my tax calculation and report for last 2 years were wrong.
I was told that they have been a new regulation on July 2013 which implies government will take 1% tax from your gross turnover, not 5% from my net profit anymore. I was shocked and ridiculed by this regulation.
The example case is as below for this new regulation.
I own a store selling grocery, if my sales for October was $1000, then I must pay $10 tax to the government for that month. The government don't want to know whether you gain or loss any money in the business, not even care if you have family members to feed(ex: elder parents, wife, kids), paying utility bill (electricity, water,etc), paying kids' tuition fee, etc. And I need to pay this tax even if at the end of the month, even if I got disaster like earthquake damaging my store or fire destroying my store to rubble.
For old regulation
I own a store selling grocery, if my sales for one year was $12000, then government will assume I got 20% profit from that $12000, so the profit was $2400. And also subtract 'non taxable income' (it's for your personal usage to pay kid's tuition fee, utility fee,etc), for example it's $1400. So $2400-$1400 = $1000, then 5% will taken from that number, which is $50/year tax.
Imagine you've to pay $120 tax from the usual $50. It's very ridiculous and horrible.
I wonder if any of your governments did implies such ridiculous and uncivilized tax regulations.
I was told that they have been a new regulation on July 2013 which implies government will take 1% tax from your gross turnover, not 5% from my net profit anymore. I was shocked and ridiculed by this regulation.
The example case is as below for this new regulation.
I own a store selling grocery, if my sales for October was $1000, then I must pay $10 tax to the government for that month. The government don't want to know whether you gain or loss any money in the business, not even care if you have family members to feed(ex: elder parents, wife, kids), paying utility bill (electricity, water,etc), paying kids' tuition fee, etc. And I need to pay this tax even if at the end of the month, even if I got disaster like earthquake damaging my store or fire destroying my store to rubble.
For old regulation
I own a store selling grocery, if my sales for one year was $12000, then government will assume I got 20% profit from that $12000, so the profit was $2400. And also subtract 'non taxable income' (it's for your personal usage to pay kid's tuition fee, utility fee,etc), for example it's $1400. So $2400-$1400 = $1000, then 5% will taken from that number, which is $50/year tax.
Imagine you've to pay $120 tax from the usual $50. It's very ridiculous and horrible.
I wonder if any of your governments did implies such ridiculous and uncivilized tax regulations.
