OK, fair enough if other countries do it, but the CGT bill was supposed to be applicable to realised capital gains only, wasn't it? It just sounds like they're being very optimistic with their assumptions.
OK, fair enough if other countries do it, but the CGT bill was supposed to be applicable to realised capital gains only, wasn't it? It just sounds like they're being very optimistic with their assumptions.
No, they don't. It's funny when you look at the countries that have no CGT, and you see you're in a list with the likes of Barbados, Bahrain, Bermuda you realise you are in the hall of shame. I'm all for a CGT and joining the league of sensible nations.
But few countries attempt to tax _unrealised_ capital gains, and it is completely unworkable. What Bernard is talking about could be more like a wealth tax, which Switzerland has, but that is a very low percentage levy against all of your assets. From .05% to 0.3%. When you start talking about taxing _unrealised_ cap gains as _income_ it's crazyville.
I think I'm starting to turn around on this. Imagine if instead of having to report on all of your unrealised gains, the institution that has the asset (like Sharesies if the asset is shares) does that for you, so you just get an invoice from IRD corresponding to the taxes on your share position every year. I mean in my case I wouldn't pay anything because I'm in the red, but realistically if you're investing less than say 100k, you wouldn't pay much in cap taxes tbh. The problem I think is the lack of tax credit if your unrealised gains become a realised loss...
OK, fair enough if other countries do it, but the CGT bill was supposed to be applicable to realised capital gains only, wasn't it? It just sounds like they're being very optimistic with their assumptions.
No, they don't. It's funny when you look at the countries that have no CGT, and you see you're in a list with the likes of Barbados, Bahrain, Bermuda you realise you are in the hall of shame. I'm all for a CGT and joining the league of sensible nations.
But few countries attempt to tax _unrealised_ capital gains, and it is completely unworkable. What Bernard is talking about could be more like a wealth tax, which Switzerland has, but that is a very low percentage levy against all of your assets. From .05% to 0.3%. When you start talking about taxing _unrealised_ cap gains as _income_ it's crazyville.
I think I'm starting to turn around on this. Imagine if instead of having to report on all of your unrealised gains, the institution that has the asset (like Sharesies if the asset is shares) does that for you, so you just get an invoice from IRD corresponding to the taxes on your share position every year. I mean in my case I wouldn't pay anything because I'm in the red, but realistically if you're investing less than say 100k, you wouldn't pay much in cap taxes tbh. The problem I think is the lack of tax credit if your unrealised gains become a realised loss...
Exactly. In this case it's socialise the gains, privatise the losses.