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 No inheritence and gift tax in Malaysia?, Tax free for assets transfer to child?

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howszat
post Jul 8 2010, 09:18 PM

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The truth usually lies somewhere in between, and it's something socialists and capitalists can never agree on.

I would say no tax below 3 million ringgit. Above that, impose a tax with slowing increasing % up to a certain limit.

If you don't agree with 3 million, maybe you would like to state another figure?

This post has been edited by howszat: Jul 8 2010, 09:19 PM
howszat
post Jul 10 2010, 03:53 AM

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QUOTE(Knight_2008 @ Jul 10 2010, 01:45 AM)
People who drive BMW often complaint about tax without even realising that without tax money, there will not be road for them to drive their BMW.
So the BMW drivers pay their taxes for building the roads. Then the roads are also used by people who did not pay or pay very little taxes. Did those people realise they are using roads they haven't paid for?
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Btw, it is also paramount for the general public to understand that just because they work hard and earn a lot of money doesn't mean that their children should be allowed to inherit all the wealth without working at all.
It's their money, they earned it. So why not? It's not your money, so on what basis do you have to right to say what other people should or should not do with their money?
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The existence of a inheritence tax will effectively reduce the offspring of those rich people who will live off the inheritence. This will increase national productivity.
Big jump in logic there. So people with lots of money will be very unproductive. Simple solution to this, just tax everybody until they scream, and productivity will shoot through the roof.
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Furthermore, for those who said they became rich only by their hard work, do u think u cna achieve ur status if not for the existence of the right infrastructure. government school which gives at least the basic education , political stability which create business and jobs,etc..
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Ok then, don't work hard. So the govt will collect very little taxes and all the country's problems will be solved.

Regards,
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howszat
post Jul 10 2010, 11:42 AM

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QUOTE(wankongyew @ Jul 10 2010, 10:16 AM)
You guys realize that this is just a psychological tic, right? I mean, if you oppose inheritance taxes because it's your money and you think the government has no right to it, then logically, you should also oppose income taxes because what right does the government have to money that you've earned through your efforts? The only difference is that because you think of income taxes as being deducted before you get the rest of your income, so only the balance that reaches your hands feels like it's really your money. But for inheritance taxes, it feels like the money has already reached your hands and has stayed there for some time, then it feels wrong to you that you have to give some of it back when the government asks for it later.

Again, this feeling of wrongness is merely because we're psychologically conditioned to grudgingly accept that only the net money, after all statutory deductions and taxes, is really ours (when in fact, all of it is really ours) and to vehemently reject giving back money once we're grown used to the idea that it is ours. But logically, if the government has a moral and legal claim on your income when it is being received, then the government can also have a moral and legal claim on your wealth later if such is deemed to be for the good of society as a whole. The other factor is that we have no experience of living with inheritance taxes so it is an unfamiliar concept that we are instinctively hostile towards.
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You are missing the essential points.

One already pays tax based on income. The higher the income bracket, the more tax you pay. You pay this throughout your earning life. On top of this, you pay another layer of tax because you have earned and saved all the money. You could easily not bother to save or not bother to work to earn that much in the first place, and not pay a cent of inheritance tax. Those are facts. What one "feels" is irrelevant.

The practical reality is you pay taxes because it pays for all those government services that benefits everyone. The point is about the fairness of the taxation system and how much tax you end up paying, and how much govt services you get in return. The point is never about whether tax money is "really ours" or "not really ours" - those are meaningless phrases.
howszat
post Jul 10 2010, 12:01 PM

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QUOTE(Knight_2008 @ Jul 10 2010, 11:49 AM)
why must u always insist one paying and getting the equivalent in return. The purpose of taxation is to enable the wealth of the country to enjoy by whole population. Are you saying that just because you are rich and pay lots of tax, the police should only protect you and those poor man can killed wantonly.
No, that's not what I'm saying. The Police is meant for everyone, not just the rich.

However, let's look at it from another view point. The whole population has a responsibility to contribute to the wealth of the country, and not just sit back and wait to enjoy the wealth that comes from other people's tax money. The focus is what you can do to help the country, and not what other rich people can do to help you.
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How would you feel if you look at a rich man kid which go to private school and the country does not have any public school to go to causing you to forever unable to compete with him.
Public goods such as national defense, public security and education will not exist without tax.
Irrelevent. The situation does not exist and that's not what I'm advocating.


Added on July 10, 2010, 12:19 pm
QUOTE(cherroy @ Jul 10 2010, 11:46 AM)
But as above my post, you are not going to be taxed again, it is your children or beneficier pay the tax, when they inherit it.
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The pool of money it comes from has already been taxed at source, ie income tax.

A bit like company dividends which have already been taxed at source. So when the share holder gets it, the source taxation is taken into account.

Of course, all depends on the actual mechanics of the inheritance tax calculations.


This post has been edited by howszat: Jul 10 2010, 12:19 PM

 

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