Study finds Pakistan Officials don’t pay taxes
PAKISTAN- A recent study from the Center for Peace and Development Initiatives and the Center for Investigative Reporting in Pakistan found that less that 1/3 of Parliment members of Pakistan file tax returns annually. This report causes concern for foreign donors and ordinary Pakistanis regarding tax evasion by the highest elites within their society.
Only 126 of 446 of these lawmakers filed returns in 2011. Among these was the President of Pakistan Asif Ali Zardari.
The report does not take into account automatic taxes taken out of their parliament salaries automatically but includes supplemental discretionary income made on top of their salaries. This says a lot as this type of income should be claimed and it is up to the individuals to do so at their own will.
The country raises questions regarding many a politicians that enjoy a lifestyle that far exceeds their salaries. Especially seeing as how the many of the perpetrators of this tax evasion are some of the highest elected officials. With so many elite evading taxes including the elected officials responsible for enforcing them it begs the question why the country even has them at all.
“Tax evasion has become a social norm in our country,” said Umar Cheema, an investigative journalist who compiled the report. “People don’t consider it a crime. But this tax demand established a bond between the people and the state. That’s how you become a stakeholder in society.”
Pakistan has one of the lowest rates of income tax collection in world. Only 2 percent of their entire population are registered to pay taxes and fewer than a quarter of that 2 percent actually do. That means that only a half a percent of their population actually pays taxes. Pretty rough when you think that taxes are what builds government and a society.
Of these tax evaders the wealthy make up a prominent percentage with the poor having to take up the slack.
Even when these tax evaders are caught red handed, they are rarely, if ever prosecuted, due to the corruption on government.
This tax evasion crisis begs the question to foreign donors why bother donating when these donating dollars are more than likely misspent and misappropriated. Only time will tell if Pakistan will get their act together or if this rampant tax evasion will continue to proliferate their society.
Categories: Federal Tax, Tax Evasion, Tax Law Tags: avoiding taxes, federal income tax, federal tax fraud, income tax, political corruption, tax evasion, tax fraud
1% Bank Exec Elites Caught Up in Tax Evasion
Frankfurt- Deutsche Bank is a behemoth monster full of bankers and fat cats. It is no wonder that during a raid at their headquarters officials identified two of its highest ranking officials as potential tax evaders. This doesn’t fare as timely news for the bankers of this country since the recent fallout of the global economy and woes that have already plagued this bank.
Authorities in Germany are investigating whether or not employees of Deutsche Bank were conspiring to avoid paying sales tax on carbon emission certificates. co chief executive Jurger Fitschen and CFO Stefan Krause are suspected of playing a role in signing documents that may be tied to this sales tax evasion.
Yesterday a swarm of officers searched Deutsche Banks including private homes. During this investigation the police took into custody 5 individuals that have yet to be identified.
The bank is providing its full cooperating and said the problem has already been resolved by adding“Unlike the Public Prosecutor’s Office, Deutsche Bank is of the opinion that this correction took place in due time,” It made no further comments
No one knows whether or not the top executives were directly aware of the egregious actions they were engaging in as executives like this sign many documents in the course of the day. Prosecutors have yet to comment on whether or not they were accusing these individuals of purposely signing these documents.
With the release of this shocking news it is unexpected as to how the bank will recover from this blow.
Like other banks, Deutsche bank is trying to recover after the global debt crisis that we recently faced, weak economic growth, and new crippling regulation. One regulation in particular requiring more capital to be available on hand could be especially crippling to the bank.
Deutsche bank has recently trying to improve its image, but legal issues keep on creeping up haunting a bank that is trying desperately to turn around. Only time will tell if this ethical turnaround is real or if this is just a typical horse and pony show.
Categories: Federal Tax, Tax Evasion, Tax Law Tags: avoiding taxes, federal income tax, federal tax, income tax, tax code, tax evasion, tax fraud, tax law
Companies avert paying taxes AGAIN before their taxes go up
The wealthy are scrambling to take advantage of the current tax code by exploiting the system in mass numbers and driving profits into their pockets before the tax hikes on the rich Obama wants go into effect.
Countless companies including Costco and the Las Vegas Sands have declared what they call “special dividends’ to liquidate tax free capital. This amounts to over $20 billion dollars in this last quarter alone. Other firms are shelling out bonuses, commissions, and dividends early before the wealth bombshell is to be dropped on the wealthiest few.
“We’re going to have a big jump in household income in the fourth quarter” said Crandall. “It’s going to be in excess of $50 billion.”
A majority of this scrambling is occurring in the uppermost crust of the elite. The 2% of the wealthiest Americans will be the benefits of this early cashout. President Barack Obama wants to target these wealthiest of individuals to help solve the fiscal crisis that lies before us by raising their rates.
Of interest in 2009 52% of the 124 billion dividends reported by federal government went to this 2% according to the IRS. A definite symbol of how backwards our world has become with income inequality.
This statistic alone proves just how unequal income distribution really is as the rich get richer and the poor get poorer. The wealth has shifted from labor income to capital income, an income with yields the benefit of lower taxes
How will this increase in taxes effect us in the long run? The rich typically save rather than spend so it is a good indication that a tax increase won’t hurt the economy by too much. It is about time that the wealthy began paying their fair share of this American Dream rather than being the gold tipped parasites that they are.
Categories: Federal Tax, Income Tax, Tax Law Tags: avoiding taxes, corporate tax, federal income tax, federal tax, federal tax fraud, income tax, tax code, tax court, tax evasion, tax fraud, tax law, tax reform