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Sakmongkol ak 47

Tuesday, 26 November 2013

On Tax Evaders and Traitors

The reason why the government lacks money is because they overspent indiscriminately like there’s no tomorrow. They have violated the cardinal rule of financial prudence- spend within your means. The government earns less than its spending so their finance is always in deficit.In the meantime, they have not address the issue of leakages and corruption.
Overall the economy is growing, only faster or slower. The economy as a whole is growing and healthy. Wealth is created in the estates, shop and factory floors, in corporate boardrooms, through commerce etc. Only government finances and the way it conducts its business is not healthy.
The issue then is- we don’t have a revenue problem, we have a government spending problem. As long as the economy is healthy, the government will earn a portion as legitimate revenue. What it does with this portion, is the issue. How it manages it. The truth is slowly emerging now- GST is another source of government revenue. It is efficient in terms of extracting the maximum from the public.
We worry how will this government handle that little extra. We can’t go by its record and we can’t go by the record of this PM who fails as a finance minister. He who simply misses the point when responding by saying don’t expect us to use candles to entertain dignitaries, when faced with criticisms about his electricity bill of RM73, 000 a day.
Public debt has increased tremendously under Najib’s stewardship of the economy. He is equally spindrift as the missus is.
 I will be happy to instruct the PM how to catch out the tax evaders. If he doesn’t have time, I will be equally happy to tell the 3.8 CGPA graduate in the person of the deputy finance minister, who are the tax evaders and therefore traitors.  Why make the big fuss and create unnecessary tension among people?
 The biggest tax evaders and therefore traitors must be the biggest tax payers since they are the groups most interested to hold back paying taxes. The answer is to identify who are the biggest taxpayers and the rich who the government has not taxed. What about the operators of the black economy- the illegal gambling and lotteries? What about the biggest operator of one armed bandits who before the GE organized one of the largest gatherings for Najib in Klang? What about the top flight bankers who earned millions in stock manipulations? What about those who do the Air Asia thing of collecting what’s due to the government upfront but refuse to hand over to the government excusing the delay to some thought out dispute?.
They have the resources to evade taxes. The common people don’t have the resources and resourcefulness, tax advisers, tax lawyers, tax accountants at their disposal.  The biggest traitors must come from the ranks of business cronies, and the rent seekers, the 5% who controls 40% of the nation’s income.
Don’t start shooting off our mouths suggesting the common people are the enemy and traitors. The ordinary income tax paper pays whatever is taxable off him because most of them pay as you earn. They can only pay out of the income they legally earn. The people who don’t pay taxes are those who earn over and above their declared income- those who earn money on the side by skimming off government purchases, companies that spend on themselves as expenses to avoid handing everything to the government, bankers who make tons of money who don’t pay taxes, rent seekers who earn a lot but don’t pay taxes. Arrest them first and strip them off citizenship. Don’t care from which race. A Malay traitor is the same as a Chinese traitor and Indian traitor.
Where does the government get its revenue? Well, they get it mainly from 4 main sources- tax revenue, non-tax revenue, non-revenue receipts and revenue from federal territories. So, if government revenue is not sufficient, the leakages must come from either one of these sources. The typical breakdown is 73% of government revenue comes from tax revenue,25% from non-tax revenue and the balance 2% from non-revenue receipts and federal revenue receipts. But still people are in the dark, what exactly are the sources of revenue.
Taxes are divided into direct and indirect taxes. Direct taxes include the taxes we pay personally on account of our income – personal income tax. Companies earn income and pay taxes- corporate or company tax. PETRONAS pays petroleum taxes. Finally there is the withholding and cooperative tax. In addition we pay stamp duties- duties paid on business transactions, agreements etc. we sell property, we pay a tax called real property gain tax. Finally we get direct taxes from the business activities in Labuan- since it’s an offshore banking centre we derive some tax revenue from there.  The indirect taxes on the other hand include export duties, import duties, sales tax, service tax and levies. So, the common man, the kampong man pays indirect taxes when they buy goods and services. Just because he doesn’t earn a taxable income level, does not mean he doesn’t pay any tax at all. He does not pay income tax but pays sales and services tax. If he owns a property within the jurisdiction of a local council he pays quit rent and if he owns land, he pays land taxes.
So if we want to catch out the tax evaders dont go after the hapless common man- go after the business cronies, rent seekers, monopolists, licence holders, the illegal bookies, the corrupt and the thieves. These are the traitors, Malays, Chinese, Indians or whichever Malaysian groups they belonged.


Tiger 26 November 2013 at 12:33  

Should translate this into BM, Dato'.

Anonymous,  26 November 2013 at 13:01  

Even for the small businesses and individual who pay tax, more would definite pay up if they know that their money is prudently to run the country. Most businessmen I know tell me that they are reluctant to pay tax because it ended up in the pocket of dirty politicians and their cronies. Like the way Najib and his misses spent billions on PR and junkets to exotic destinations in the guise of "official visit". Their reasoning is why pay more than necessary when it is going to be wasted like that in someone else's pocket instead of on the rakyat? Who can blame them?

Anonymous,  26 November 2013 at 15:27  

Dear Datu Sak

One important reason for the French Revolution of 1789 was the crushing tax burden on the people coupled with the lavish and wasteful lifestyles of the First Estate (nobility) and the Second Estate (Roman Catholic church clergy).

Phua Kai Lit

Anonymous,  26 November 2013 at 18:19  

Make those professionals, accountants, lawyers, tax consultants and bankers who are party to the tax evaders equally liable for the crime. Change the law if necessary. But first the professional associations involved must disqualify or suspend those members of their associations advising and finding loopholes for these people to escape tax payments.

walla 26 November 2013 at 22:38  

The root is corruption. The corrupt don't report to pay taxes on the loot they have siphoned and salted. Easily in the billions annually.

Therefore if the government wants to collect really big taxes, it should start by going after the corrupt first.

Since the government hasn't done that, what other conclusion can any honest tax-incurring citizen derive than to think the government is behind the corrupt?

Which idiot will pay taxes to a government that condones and benefits from corruption whose reduction would have reduced the need for citizens to pay high taxes at a time when waste and looting are at an all-time high in political circles while the citizens are suffering from high costs of living caused by bad governance?

That would be adding fuel to fire.

Anonymous,  26 November 2013 at 22:47  

increase the taxes of those who own multiple premium properties, luxury apartments, offices with prestigious address, condos, penhouses; remember the major also said his wife who owns a penthouse ( luxury ?) is not spared either from the increment of pintu cukai which amounted to 120 - 300 percent; they are already struggling to eke out a living, most are lowly - paid workers, many umemployed, in Kg Baru, etc, the poor Malays, Chinese and Indians )

Proportionally increase the taxes of those who own uber luxury private yachts, jets, stealing ancestral lands from the bumiputras; their multi-tiered shady investments and profits

Nampaknya Firuans & Jezebels semakin giat dlm deceptions..

Anonymous,  26 November 2013 at 23:17  

@ 26 November 2013 18:19

Do you mean the elite doctors, lawyers and board members at Prince Court Medical Centre, IJN, Maju Holdings, Berjaya ?

Anonymous,  26 November 2013 at 23:36  

Going by the logic presented, that the biggest tax evaders would be the the who-have -the most, then start checking out the urbanites first. Dont waste time going for the smalltimers who-have-the-least. I dont have to share the demography of the races going by that lines, my cat, your cat and the neighbour cats knows it and race is immaterial

The largest group of traitors are in the urban it person or companies..

Anonymous,  26 November 2013 at 23:38  

What about Malindo Air ? Their massive easy loans, their taxes, their patriotism ? resulting the Rakyat's loss in the 13th election ? The sulus ? The unending bailouts of govt projetcs, bumbung stadium runtuh, tanah runtuh, ceiling of a hospital cave - in, and so forth and the insurmountable failures of GLCs and crony conglomerates - addressed in the same, yet another slogan - traitors ?

Anonymous,  27 November 2013 at 01:10  

the demography and datas produced by bigots, the goons can be manipulated !!!! persian cats and premium dogs must be taxed too.

Anonymous,  27 November 2013 at 02:33  

Incidentally, after having had a long deep chat with good friends, I honestly think it is rather nervous, with a quick mental calculation say a fresh Malay graduate from overseas, first - class, multi-lingual, very open-minded to be muhibbah, working in the private sector, say drawing a salary of RM 5 K a month, then paying about RM 1.5 K a month for rent, RM 1K for car instalment, another RM 300 for gas, about RM 400 for insurance, paying income tax - deducted monthly, perhaps a gift token of RM 300 – RM 500 to parents, RM 300 on meals, a 5 day- week per month, with minimal personal spending on entertainment, the end result is a new case of poverty - sliding from the middle income class. Real worrisome.

And one does Not want to live on handouts but rather want to give to deserving ones wherenever possible. At a personal sacrifice to drain out. Hence ones, be they young educated Malays, Chinese or Indians, they should considered as patriotic to drain out the country to seek better opportunities abroad as they do not want to burden the taxpayers. And then remit money back for spending which translates to impacting the nation’s economy ?

Sorry gentlemen, I don’t sound too optimistic, but realistic this late evening.

I also would like to take this opportunity to encourage Haris Ibrahim and anyone who follows his cool tender / her good heart in serving by giving to others, please do not give up your career, have a bi -career instead.

nick 27 November 2013 at 07:52  

With annual leakages and wastage amounting to 20Billion, Najib is saying that he has no choice but to implement GST? I thought one of the reason spouted by TDM on the need of building a new administration capital "Putrajaya" WAS to make the government more efficient, more effective and more productive. But it would seem the concentration of tens of thousand of human brains in one location could not make BN (UMNO) government anymore efficient and productive that paying outside consultants billions for providing some cheesy ideas (such as the over use of acronym and K-pop artist to boost tourism) and a glossy booklet that comes with it.

Where was all the talk about us becoming a high income nation? Instead Najib now is saying we are at risk being a bankrupt nation? Malaysia under Najib and UMNO is gearing for a high income nation but without implementing GST, we will be bankrupt? Isn't that oxymoron if not the best example of it? It simply doesn't make sense unless we are broke actually from all the stealing and in order to survive, Najib need to rob Malaysian of every single sen and then cover the stealing as a progressive move towards a developed country!

And didn't we in the last GE were warned of this happening? Yes we were but many of us are too drunk on "ketuanan Melayu" liqueur sold by TDM to actually realize that with Najib and UMNO at the helm for another term, the Malays will be poor and destitute apart from the super rich UMNOputras and And what's worse, we can't do anything to stop it for another 5 years. All this because we can't take the risk of electing someone else. We are too scared of what might happen no matter how inconceivable it is when we should be more afraid of what will definitely happen which is by the way is really happening now, Malaysia going bankrupt because Najib is a moron and UMNO are corrupt to the core!

If we look carefully and thoughtfully, we can actually rearrange all the acronyms and initiatives that Najib has shoved at us (at the cost of billions, mind you) and we can actually spelled it as 1M.A.L.A.Y.S.I.A.B.A.N.K.R.U.P.T! Not really but then I'm no consultant paid billions to come up with crap and sold it as a diamond ring to Rosmah or Najib or whomever is really in charge of the well lit but still the dimmest household in Malaysia,Seri Perdana.


Anonymous,  27 November 2013 at 09:10  

YB Dato Sak,
Can MPs sack the PM.

Anonymous,  27 November 2013 at 15:50  

Dato, how do you or anyone explain the article to the 47% electorate who voted for UMNO-BN?

If it is possible to knock the sensibilities of the erudite articles & comments here and elsewhere, into 10% of the 47% BN voters, we would already kick out the useless and traitorous BN party from government.

So the key to victory is knocking sense into the 47% BN voters' heads. How?

Anonymous,  27 November 2013 at 18:27  

si mamak baru keluar hospital dah mula melenting pasal lukisan grafiti mencemarkan dinding rumah2org, dll dlm the Star paper, dia sepatutnya shut up, who gives a hoot what he knows, peduli apa, sebenarnya rasism yg membakar jantungnya, korupsinya, najis bigotrynya yg mencemari seluruh negara !!

Anonymous,  28 November 2013 at 09:18  

The accountants are equally at fault in helping the tax evaders. My friend (accounting profession)told me years ago on how they operate. They will always ask their clients: "How much profit do you want to declare!"

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