Personally, I found this fascinating, Takes about 10 minutes to watch
http://www.youtube.com/watch?v=u6XAPnuFjJc
http://www.youtube.com/watch?v=u6XAPnuFjJc
Or compare a €500 payrise to the boss saying "I know you're off for a weekend, keep the hotel receipt and I'll bung it through on expenses for you", same cost to the organisation but the reaction is whoopy-flippin-do OR sound man, fair play to you.
Yes, it's always great news to know that you can conspire with your boss to evade tax for yourself and the organisation. That's just what the country needs right now.
How does 'bung it on expenses - same cost to the organisation' equate to 'coming out of his pocket'? Bung it on expenses means that the company is going to pay it. The company gets a tax break by treating it as a business expense, and you get a tax break by no paying tax on the income. Win-win for you and your employer, lose-lose from the State. At least until the Revenue auditors come knocking on the door.Leave it out Rodney, it isnt salary substitution, its someone being sound, and its coming out of his pocket.
The employer has a direct choice between the two, between complying with the law or breaking the law. By breaking the law, he is undercutting his competitors who don't break the law.You're obviously not given a direct choice between the two, the point was the different reaction or motivational impact they have.
I'd agree with you about numbers 1-4, but you're forgetting one important cause. Number 7 should be the culture of tax evasion here in the 80s and into the 90s where tax was only something for the little people. Anyone with cash income or a cash business put their money offshore aided and abetted by the banks, and public services suffered. The Health Services was just starting to recover from the cutbacks of the 80s before the latest round of cutbacks hit.Leave it out Rodney, it isnt salary substitution, its someone being sound, and its coming out of his pocket. You're obviously not given a direct choice between the two, the point was the different reaction or motivational impact they have. If you want to see why we're where we are you should work you way through the following first:
1. Banking remuneration structures.
2. A government hooked on property tax revenues.
3. Credit addicted population.
4. Greed
5. Worthless trade unions
6. Out of control public sector spending (see 5 above)
After fixing the above no doubt we'll still flounder of the weight of the odd staff perk.....![]()
While I agree with your stance this comment is incorrect. Businesses pay tax on their profit, not on their turnover. As expenses are not a profit they don't pay tax on them. There is no "tax break" here.The company gets a tax break by treating it as a business expense,
Thats Maslows alright.Enjoyed that, though maybe not 100% as revolutionary as it makes out. Dusting off the auld OB from college (in my head, I'm not THAT sad), Maslow's hierarchy of needs, a triangle, with food, shelter etc at the bottom rising up to self-actualisation (basically being all you can be) at the top.
It noted things like pay as a "hygiene" factor, ok not having enough is a problem but once you have enough then more & more doesnt necessarily motivate.
How does 'bung it on expenses - same cost to the organisation' equate to 'coming out of his pocket'? Bung it on expenses means that the company is going to pay it. The company gets a tax break by treating it as a business expense, and you get a tax break by no paying tax on the income. Win-win for you and your employer, lose-lose from the State.
Apologies but this multi-quote isnt working for me. Basically he's a business owner so "the company" is, ultimately, his pocket. Even if he gets a tax deduction it still costs him - say he pays €100 he saves c€50 in tax so it still costs him a net €50. As regards tax for me, as I said its not salary substitution, if he never did that for me I still wouldnt be paying any more tax.
But I guess it's always someone else's fault -right?
/QUOTE]
My fault for taking this even further off topic, but as someone who has paid PAYE (just as well no doubt you're saying to yourself) from day 1 , never on social welfare, never burdened the public health system or justice system, I think you're unfairly tarring me with the ruination of the nation over something trivial. (Not that I'm blaming people availing or the above state services...except maybe those in the justice system). This year I'll insist my boss gives me a €250 hotel voucher, thats officially tax free. [decided to omit any sarcasm re getting a tax free €250 voucher this year, its too beautiful an evening for that, peace and love to all men... and women ....and ...all the rest, you know who you are]
Just a slight exaggeration there, I think.I think you're unfairly tarring me with the ruination of the nation over something trivial.