Showing off you are rich? Remember to pay your tax.

Showing off you are rich? Remember to pay your tax.

Two things we cannot run away from. Death and Taxes. I am very sure people intend to pay tax if they earn higher than the tax threshold. However, for some who’s doing a small business, it’s not easy for the tax department to keep track on whether the small business owner should pay tax or not. No tax is applicable if the earning is low. No tax is applicable if the business is suffering losses too.

However, if the business earning is low and the business is suffering losses, then it’s better not to buy some luxury goods or even a brand new RM150,000 car and then share with the world about how rich you are. These days, with social media, someone may also be watching all these news at the same time. One example of how the tax department took some actions after seeing some news in social media.

Article in nst.com.my A wantan noodle seller had to hire a lawyer after the Thai Revenue Department decided to investigate his wealth.

Rangsan, 57, owner of the ‘Hong Te’ wantan noodle shop located in a village near Chaeng Wattana Nonthaburi Road, gained fame on social media for his gold chains and bracelets worn during work.

In a report yesterday, Rangsan expressed his concern after the Revenue Department announced its intention to examine his wealth, although he claims to have earned it honestly.

Rangsan stated he spent around 80,000 baht (RM10,200) from selling land to his sister to buy some gold jewellery.

He also said he had saved money from selling noodles over the past 32 years to buy additional gold jewellery weighing 375gm, costing one million baht (RM127,384). Do read the full news here: Article in nst.com.my

No need to worry if all are legitimate or can be proven easily

If someone is running a stall and there’s hardly any customer, chances are the business is not earning a lot of money. However if someone is running a stall and queues form every day and it has become viral and the tax department saw it, then of course they may just drop by and do an audit by counting the numbers and then doing some estimations. These are already happening and is not something unthinkable these days.

This is how tax revenues are also increasing every year because they are becoming more effective and efficient. With everything going online, the number of staffs who needs to find things to do would increase and these are some of the roles which will help the department achieve its KPI. I do not think they are given incentives but if they are, then these officers’ may become even more motivated! So, sometimes it’s good to pay some tax or perhaps not to show off too much. It’s a choice also. Cheers.

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