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25% Government Tax by Contractor?
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TSA|X
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 Jan 5 2024, 04:07 PM, updated 2y ago
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Hi All. Would anyone please advise if you have experience with this case? The scenario was a house had twice cases bursting or overflowing of pipes. The house owner would like to claim insurance for it. The house owner also got the same contractor for making repairs.
The first time, insurance company had seen the condition. House owner and contractor proceeded with the repairs. House owner claimed insurance.
The second time, insurance company had seen the condition. House owner would like to proceed with the repairs. However, the contractor said, he would forgo the first time repair government tax charges. He has to charge 25% of government tax for this time since the house owner wants to claim insurance. The 25% is to pay to government.
Questions raised,
1. Why only charge government tax when the house owner wants to claim insurance?
2. Is there a government tax to charge to customer / end user for this plumbing or repair service sector (not sure which sector or proper title it falls to)?
3. Why is there a 25% government tax? Are not we using SST 6% and it has increased to 8% recently? Is it or not a scam?
Thank you!
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Minolta
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Jan 5 2024, 10:16 PM
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QUOTE(A|X @ Jan 5 2024, 04:07 PM) Hi All. Would anyone please advise if you have experience with this case? The scenario was a house had twice cases bursting or overflowing of pipes. The house owner would like to claim insurance for it. The house owner also got the same contractor for making repairs. The first time, insurance company had seen the condition. House owner and contractor proceeded with the repairs. House owner claimed insurance. The second time, insurance company had seen the condition. House owner would like to proceed with the repairs. However, the contractor said, he would forgo the first time repair government tax charges. He has to charge 25% of government tax for this time since the house owner wants to claim insurance. The 25% is to pay to government. Questions raised, 1. Why only charge government tax when the house owner wants to claim insurance? 2. Is there a government tax to charge to customer / end user for this plumbing or repair service sector (not sure which sector or proper title it falls to)? 3. Why is there a 25% government tax? Are not we using SST 6% and it has increased to 8% recently? Is it or not a scam? Thank you! I think he is saying he has to pay 25% income tax for his profits. Because if you claim insurance, he will have to give you official receipt, which means he has to be taxed on this. Otherwise, cash business he just dont declare to LHDN to avoid tax.. |
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TSA|X
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Jan 6 2024, 04:38 PM
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QUOTE(Minolta @ Jan 5 2024, 10:16 PM) I think he is saying he has to pay 25% income tax for his profits. Because if you claim insurance, he will have to give you official receipt, which means he has to be taxed on this. Otherwise, cash business he just dont declare to LHDN to avoid tax.. Company income tax got 25% so high? Is that normal? |
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nexona88
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Jan 7 2024, 11:08 AM
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QUOTE(A|X @ Jan 6 2024, 04:38 PM) Company income tax got 25% so high? Is that normal? Unless the income is 600k & above... Then the rate around there.... If not range from 15% to 24% like that... |
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TSA|X
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Jan 7 2024, 09:16 PM
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New Member
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Thanks for enlightening guys!
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theevilman1909
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Jan 20 2024, 12:12 AM
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Deleted
This post has been edited by theevilman1909: Jan 20 2024, 12:13 AM
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Jason
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Jan 20 2024, 06:08 AM
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The contractor repaired the first time
Burst again
And you want to hire the same contractor who did the lousy job in the first place?
Wow.
Must be a special kind of genius.
And how did you claim insurance the first time without invoice?
The fact that the contractor is dishonest (does not pay his tax) and you want to engage a dishonest person?
Woah. I also want to be contractor.
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