IS IT WORTH PAYING TAXES? AND IN SLOVAKIA?

IS IT WORTH PAYING TAXES? AND IN SLOVAKIA? At lunch, my colleagues did a short search of the “finstats” of some of the more famous celebrities. The result? The published standard of living of many of them does not correspond to their declared income. And it’s certainly not because they are in business as self-employed (they are not on finstat), because with an annual profit/tax base of €100,000, for example, the tax-tax implications are as follows: Self-employed:
– Health levies: €9,421;
– Social levies: €22,308;
– Income tax for FO: €14,582;
– Income tax for PO: €0; SRO:
– Health levies: 0 EUR;
– Social contributions: 0 EUR;
– Income tax FO: 5 530 EUR;
– Income tax PO: 21 000 EUR; So, if their standard of living is not a lie, there are only two options. And both with criminal risk: ✓ Do not recognize income (not only cash, but also free holidays should be taxed); and/or
✓ Have some foreign company; In many spheres of business market standard. And we all know that a healthy society should not reach this state… But unfortunately just such a 14% “unstripped” health levy on cryptos/securities/property income motivates even the greatest moralists/lovers of our country not to pay taxes (health levies are paid on tax returns). This is proof of the Laffer curve’s workability (a higher rate does not necessarily mean higher tax-tax revenue). From a risk perspective, I am a conservative on this topic. And a believer (probably more naive in today’s realities) in the sense of cultivating a predictable and sustainable business environment. When we design legal-tax optimization schemes, we design ones that are legal and legitimate. Only those that are generally defensible from a criminal/business/tax law perspective. That’s how it makes sense to me, and that’s how we teach our clients. We want to help clients be able to anticipate better. And we apply that same yardstick to ourselves. We want to be healthy and organic as a “firm.” In the context of our 2022 tax liability, that’s a really great service to the country. Especially if you figure out the “stunts” I could do even on a zero tax liability. But I don’t want to live in an even less predictable environment either. But other than that, that’s what I wanted. Combine HIGHGATE (law and taxes) and CARPATHIAN (taxes and accounting) under one brand. We are now the Highgate Group. It doesn’t make sense to look at complex business issues only as a lawyer, or only as a tax advisor, or only as an accountant. The client wants comprehensive solutions. That’s why we’ve brought law, tax and accounts under one roof. Here’s our rebranding story. Thanks for your feedback 🙂