DEATH BY TAXES

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In my accounting practice I have seen thousands of discouraged entrepreneurs seeing their hope crumbled in front of them and their profit throttled from them in the form of taxes. It is heartbreaking to see an entrepreneur who put all his effort, talents and basically his life on the line, to keep the wheels of his business turning and as a matter of fact the wheels of the economy turning being hit by another wave of tax expense. 

I developed such a hate for the tax system, as I have seen entrepreneurs life’s being destroyed by the tax system, that I am seeking psychological council for that. I am going to request from the psychologist to just start with my tax issues, as I think everything else will magically fall in place, by getting Revenue Service off my back and leave me the hell alone so that I can add value to people’s life.

The 186% Tax Bill

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I wish I could advice all my clients to treat their biggest Creditor: Revenue Service with the respect they deserve and that is: None. Unfortunately it is not the case, my clients' number one creditor before even payroll is Revenue Service.

I have made a simple table summary below of the most important taxes in South Africa, and it is staggering. Please understand that this cannot be extracted, exactly like this because tax is a technical matter. You have to study 7 years to try and make sense of it all. There are over 2400 tax laws . Stop printing those books alone will save the amazon-rainforest.

Tax summary %


Income taxes - 51 %
Capital Gains taxes - 18%
Donations tax - 20% (I am sorry mum I can't help for I will be taxed)
Value added tax - 14%
Estate taxes - 20% (death taxes on your estate)
Customs % excise - 10%
Custome duties (10-30%) - 10%
Sin taxes - 5%
Fuel levy and taxes - 14%
Retirement taxes - 18%
Property taxes - 7%

Total - 187%

We are surviving on rebates

This table resulted in a letter I wrote to our beloved Government and Revenue Service.  I am contemplating hiring 24-hour bodyguard protection, because of fear that some secret organisation of the government whose name is too long to pronounce in one breath and goes by some abbreviation I can’t remember, knowingly that they might be coming after me (and who was founded and funded by my earnings). Please comment below if you can help, unfortunately the expense will not be tax deductible: as it is not in the generation of income.

My letter to Revenue Service that might haunt me

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“Dear Government I have come to the conclusion that my business survives and I survive because of the rebates you so kindly bestow on us, thank you so much for being so kind, after I paid you, I am going to buy some food, which before I forget, you are also going to tax with 14% VAT.

Maybe I will have something left, to pay my bond, school fees (which you regulate), security company (as you cannot keep my family safe), car instalments, electricity (which you so kindly provide so inefficiently), property rates and taxes (who the hell thought of that one?). Doing these transfers I will pay bank fees which you also charge VAT on , dog food, by the way his name is "Lucky", because he does not pay any taxes, so-far.

My credit card also need a few bugs. On the way to the grocery store I am going to drop of my garbage to be recycled, as you did not collect the garbage last week (by the way something I also paid you for), oh before I forget my car is empty, I will have to put some fuel in, I know half of the fuel costs are paid to you, including taxes on the import. Talking about my car, my car licence is overdue, I hope that some of your employees who hate their mediocre job, does not pull me over and check my car-licence and my driver’s licence which I also realise is due for renewal. I am going to ask my wife to spare me a dollar, as I take leave from my job to renew my driver’s licence - it is gonna take me I day, at one of your offices. I apologize that I won't be earning any income on that day, for you to tax, but don’t worry, I am going to the office on Saturday and miss my daughter's netbal match to make up for that with some nice overtime money. Please be kind and only take 25% of that, as I really hated sitting their only thinking of my daughter, who was disappointment in me not being able to attend a very important event in her life.

I hope I don’t die on the road on the way to the store, as I have not visited Louis’ to do some magic with my estate and try to minimize the damage of 20% tax. I am worried that there will not be anything left for my family as life is getting more expensive. If I make it to the store and back: I am going to enjoy a nice cold one, which you have also tax righteously calling it a sin. Knowing that, I am born a sinner are just gonna consume a couple more just to forget that you exists. Fortunately I don't smoke, that tax alone might send me directly to the welfare application queue. If I survive this job until retirement, hey thinking of that, the markets aren't performing well, we must move some funds around you're 18% retirement tax is going to shrimp.Oh shit I forgot, I will be taxed when I move it out of the country, don’t worry, you will be fine, because I just heard we must brace ourselves for another tax hike in February 2018.

Just in case you will not balance the books you are going to charge sugar taxes from April 2018, which is a good thing because now I can give Gabby a good reason to stop drinking soft-drinks. She does not believe me, but since she knows I earned a living trying to help people paying you, without you contributing a cent, she might just leave it for good. Thank you for removing the freedom of choice, making decisions now is going to be much easier to do with your kind assistance.  

Sincerely,

Your punching bag who is paying for your failures.  

PS: Excuse the langauge, I am a bit stressed as I had to write this letter after-hours and have not earned a dollar yet today. 

The tax-free Island lifestyle

I first saw Stuart my mentor in a canoe in the beautiful island of Mauritius. There and then: I knew this guy was special. He knew something many people don't. He is giving me an opportunity from a place on earth where many of these taxes do not exists or are very low . I clicked on the the same link below, before I could be declared: “death by taxes”. The education provided by his company SFM might just help me to reach the Island before Revenue Service does.

http://tidyurl.com/b4uber 

I am planning writing another letter to Revenue Service which content is still classified. Kindly subscribe should you wish to receive a notification when that letter is published. 

Louis Munro 

Chartered Accountant 

>Founder:Your Moment Your Life 

>Founder: Munro Accountancy Inc.

>Co-founder: The Fun Accountant

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