Monday, July 7, 2008

Income Tax...so that's how it work.

Income, there's passive and active income. Active wise is we work for it while passive is we don't "work" for it (money churns more money such as investment).

Since my uncle and aunty are in China now, I've to help them settle their stuffs. My uncle thought that since his wife's not working anymore (she left workforce in 2006), so theres no need to submit the income. Lo and behold, there come a letter with a penalty of $150 for the current year. Worst is, he did not report the previous year too, totaling $300. Why?

The answer is, since they are in China, they rent out their apartment. That is considered passive income. So its still income therefore need to report. But my uncle says rental is under his name, why his wife need to report?...

Second answer: If the property itself is under BOTH parties, then both also need to report. LOL!
They don't care if the rental is under whose name, hahaha!

Haiz...that's government for you. And I've been waiting for the tax officer to answer the call. The machine will say, "Please hold while we connect you to one of our tax officers". Then they play music. "Our tax officers are busy, please hold". Music. "All of our tax officers are still busy, please continue to hold". Music, then again the previous sentence. The last sentence is, "All our tax officers are still busy, please leave a message or continue to hold"...

What freaking long wait!

Axel blogged at 2:14 PM