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
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
Fraud in Federal Tax
The former owner of the Decatur-based racing fuel company, Evan Knoll, has been arrested for violating the conditions of his bond in federal tax. A three page motion was filed October 29, 2012 by Assistant U.S. Attorney Michael A. MacDonald taking Knoll into custody last November1, 2012 in his hometown. He threatened a government witness and asked to return some of his firearms from a friend that is taking care of them. He will be sentenced on November 21, 2012 in U.S. District Court in Grand Rapids. July 25, 2012, he pleaded guilty on 1 count of bank fraud and 8 counts of filing a false claim against the government.
Knoll owned several businesses like Services Inc. in Decatur and General Sales. He also had a Knoll Gas, Torco Racing Fuels Inc., EWK, LLC, Knoll Gas Motorsports Inc. and eRaceFuels Inc. it is said that Knoll is claiming for refunds of up to $110 million in federal gasoline excise taxes. It was learned that Knoll had used derogatory names and threatened physical harm against the government witness.
John Karafa, Knoll’s attorney is already aware of this information. According to MacDonald, the federal probation officer contacted the prosecutors saying that Knoll had violated the terms of his bond stating that he does posses firearms or any harmful weapons. MacDonald also said that the person who is in charge of the alleged firearms contacted the Van Buren County Sheriff’s Office after Knoll asked to have his firearms back because he is going to sell it. This was granted by U.S. Magistrate Ellen S. Carmody. Knoll is help for federal custody.
Categories: Federal Tax, Income Tax, Tax Law Tags: federal tax, federal tax fraud