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Tax Shelter
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David Archer RJ: BallC CO: BallC Post Rating: 0 + / - Total Posts: 142 Karma: 135 Joined: Apr 11, 2012 |
Posted on Dec 24, 2012 Tired of paying 16, 18, 20%+ in taxes?Here's a simple solution: 1) Start a new company (I like to name mine <something> Investments or <something> Tax Shelter). 2) Don't build anything in that company so it stays at level 0 (tax rate 0%). At the very least, keep it under $250k so you don't go up a level. 3) Every day, sell 1 unit of electricity to each of your other companies for whatever amount you project the other company will make in profit that day (tough without having some kind of running total but you can estimate it). 4) After transferring, simply transfer the money out of the new company into your personal account. IMPORTANT: don't leave the money in there when the server daily cutover happens or else the company level will go up. At the next daily cutover, the tax shelter company will show lots of revenue/profit from B2B sales but will pay 0% tax because of the company level. Since you transferred all the money out, the NW of the company doesn't increase and you never go over level 0. All of your other companies will have a B2B purchase for (ideally) the amount of profit they made that day and will end up with $0 operating profit and therefore $0 taxes paid. You'll end up paying 5% B2B fee on the amount plus 0.5% to transfer it out of the tax shelter. Assuming you'll take it and transfer it back into your other company (another 0.5% fee), you're looking at a 6% "tax" rate instead of 16, 18, 20%. (DEV NOTE: To fix this, implement a real progressive tax system that starts at 0% for the first N dollars of profit and goes up as you pass higher threshold. e.g. You pay no taxes on the first $250k of profits, 2% on profits from $250k - $1M, 4% on profits from $1M - $2M, and so on. That way, a level 10 company that made $5M in profit will pay the same taxes as a brand new company that made $5M in profit. DON'T implement it as a flat tax across the entire amount depending on the total profit made or else you end up with the undesirable situation where making $4,999,999 of profit is better than making $5,000,000.) |
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Paco Co RJ: Mr. Costa CO: Mr. Costa Post Rating: 0 + / - Total Posts: 89 Karma: 30 Joined: Mar 8, 2012 |
Posted on Dec 27, 2012 Why cant you just play the game as it should be?Why cant ppl just play a game as a game for fun instead of always trying to find a way to cut corners and take some kind of advantage or something by bending the rules or finding loopholes. The same principle that applies here applies to all things humans are involved in, always trying to "cheat" or take some kind of advantage that wasnt suposed to be. You want to be the best David? i give you a crown, be the best, be the top dollar, be the king, whatever you want... its still just a game for fun. Whats interesting to see is that you can teach ppl some interesting concepts for real life like human behaviour paterns, its very useful specially for ppl trying to design a countries constitution and law system. Cheers. (ps: i know you will say you posted that dev note and say you are doing a great service for the game... note: there aint no DEV anymore...) |
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M Burch RJ: Farmerbob CO: Farmerbob Post Rating: 0 + / - Total Posts: 151 Karma: 14 Joined: Sep 2, 2012 |
Posted on Dec 29, 2012 Part of playing any game is finding out how to play the game. If something looks fishy then it should be reported.Just because there isn't active development now doesn't mean there might not be active development next week. For all we know, the dev here was in a car wreck months ago and is still in ICU, or he might have actually simply died. Maybe he found religion, and it requires him to live in a mud hut in Turdmenistan somewhere with no electrical power. Maybe he got sued by someone else and has a court ordered hands off requirement until the suit is settled or whatever. As long as it still works, I'll still show up here and when I find things that are potentialy game breaking, I'll report them, and I think the rest of us should too. One day, development will return, OR in a less favorable universe the servers will just stop responding to us and we will be forced to move on. I won't use the tactic Ballc discussed, but it's good to know that there are people still actually playing and experimenting and offering findings for possible future dev work. |
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Dana Sands RJ: Fred Fredrickson CO: Fred Fredrickson Post Rating: 0 + / - Total Posts: 26 Karma: 10 Joined: Apr 14, 2012 |
Posted on Dec 31, 2012 To be fair, real companies do all kinds of crazy stuff to lower their effective tax rate that isn't always all that dissimilar from this scheme.
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