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Old 9th Sep 2011, 22:32
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Cpt. Underpants
 
Join Date: May 2002
Location: up here, everyone looks like ants!
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Another thing - the "forgivable loan" - USD200,000 is viewed by the IRD as income and is taxable IN FULL on your first years' income.

The IRD then assumes that you'll be earning the same amount the next year and you pay provisional tax on another $200K. Double whammy.

What's unfortunate is - unless you've done the "short course", there'll be about nothing left, so the "seed money" CX maintains you'll have on arrival in HKG to set up a rental, etc, will be taken by the IRD.

Enter the tax loan cycle. You borrow money from the bank to pay your taxes, amortized over 12 months, and just as you've paid it off - the next tax bill arrives. No money - take a tax loan...

This "IC" scheme is just unfair, demeaning and insulting to all professional aviators.
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