Archive for June, 2010

Preliminary Tax – A Noose on New businesses

A great example of how messed up our country is at the moment can be summed up with one term Preliminary Tax. The double taxing of new businesses to stunt their growth.

hanging-manSome idiot in government during the boom years decided to increase the tax take they’d ask companies to pay next years taxes in advance and somehow the country awash with money let it slide by into law, after all banks would easily loan you the funds to pay off the burden, especially in the first year if you turned a decent profit. But what does this really mean for start up businesses in today’s economy? Well even extremely viable businesses can’t get credit from the banks, hell new businesses can’t even get bloody over drafts without jumping through hoops of flames. We just spent the next generations rainy day fund on, new businesses are being asked to pay TWO YEARS TAX in their first year of business, effectively stunting their chance of rapid growth.

The government needs to get behind new business and with SME’s accounting for the most of the potential jobs that will eventually get the country out of this recession, it’s farcical that their first years profits – the ones which are the most likely to be reinvested in the business, which in turn creates the jobs so desperately needed are being sucked up by the government. Ironically then simply passed back to unemployed pool, who would have had a job if the SME’s we’re allowed to grow and compete on the same playing field as a business who has been trading for several years. Talk about biting the hand before it feeds you. This seriously needs to be re-addressed in the current financial climate.

*Preliminary tax must be paid in its first accounting period for all new businesses that earn more than €200,00.

Data Protection Reflection

Today at Lunch I got more than I bargained for, a guy two tables away from me shared his personal finances with absolutely everyone in the restaurant. It was incredible how much information was divulged in a short space of time. Strangely it kind of motivated me if someone that stupid can be successful then success can’t be that closely correlated with intelligence. This wasn’t a case of listening in on someones conversation, simply the conversation on our table (and most others) stopped because the person was so loud we’d have been shouting just to be heard by the person next to us.

I don’t feel the need to paint the picture because you already know the type, you’ve met them before no doubt. They are certain the world revolves around them and the louder they talk the clearer people will understand their point.

As their meal started Mr. Loud lets call him, received a call from his investment fund manager. Through the next 20 minute conversation I knew absolutely everything about the state of his finances. The conversation revolved around the guy not wanting to pay his fund managers administration charges on the basis that his investments hadn’t been successful in the last few months (recession anyone) and therefore he didn’t deserve his fee’s (idiot!!!). In some odd way of trying to impress his fund manager (who works for one the banks) he was telling him of all the business he’s done with his bank and all about how negative performance in his business would not be rewarded with any pay.

Very quickly one could deduce this less than socially aware person has two mortgages hence owned two properties, invests in blocks of 30-50k without understanding the investment vehicles he invests in, is a founder and managing director of a technology company and then by giving his email address he gave away his companies name and his own. It was car crash TV, think the MTV jack ass of corporate stupidity. Knowing the field he’s in the competition would have definitely paid for the information he was throwing away. All in all, one could deduce the companies financial situation, his personal asset base and have enough data to preform identity theft.

So next time your out and your phone rings, remember that something as simple as calling out your email address in public is giving away a lot more than how to contact you.