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whatshisname
Joined: 15 Mar 2004
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 Posted: Wed Aug 24, 2005 8:08 am Post subject: Can a director charge tax on a plane ticket?? |
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Leaving soon and my director is famous for charging insane amounts of tax on the return plane ticket and the severance package. Is this legal? Does anyone know where I can go to find this out?
Cheers! |
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fidel
Joined: 07 Feb 2003
Location: North Shore NZ
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| Posted: Wed Aug 24, 2005 2:35 pm Post subject: Re: Can a director charge tax on a plane ticket?? |
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| whatshisname wrote: |
Leaving soon and my director is famous for charging insane amounts of tax on the return plane ticket and the severance package. Is this legal? Does anyone know where I can go to find this out?
Cheers! |
Insane amounts no, but lawful amounts yes! Add up your severance pay, plane ticket price and last pay check out the tax scale and that is the amount you will have to pay.
If you are smart you would ask for your severance to be taxed on the preceding month, it will cut down on your tax bill. |
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sadsac
Joined: 22 Dec 2003
Location: Gwangwang
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| Posted: Wed Aug 24, 2005 6:17 pm Post subject: |
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Tax on plane tickets is 10%, you can verify this with any travel agent. The agent charges the tax, not your director. It's part of the ticket cost.  |
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fidel
Joined: 07 Feb 2003
Location: North Shore NZ
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| Posted: Wed Aug 24, 2005 6:44 pm Post subject: |
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| sadsac wrote: |
| Tax on plane tickets is 10%, you can verify this with any travel agent. The agent charges the tax, not your director. It's part of the ticket cost. |
Sadsac I think he was referring to income tax not VAT. |
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Hollywoodaction
Joined: 02 Jul 2004
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| Posted: Wed Aug 24, 2005 8:03 pm Post subject: |
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| sadsac wrote: |
| Tax on plane tickets is 10%, you can verify this with any travel agent. The agent charges the tax, not your director. It's part of the ticket cost. |
Exactly. The airplane ticket is not taxable income for you, but a refund for your expenses. Typical hagwon owner's nickel-and-dime scam. He's trying to get you to pay his income taxes on that amount of money. Call the labor board. |
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whatshisname
Joined: 15 Mar 2004
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| Posted: Fri Aug 26, 2005 2:42 pm Post subject: thanks |
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Thanks folks!  |
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fidel
Joined: 07 Feb 2003
Location: North Shore NZ
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| Posted: Fri Aug 26, 2005 3:15 pm Post subject: |
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| Hollywoodaction wrote: |
| sadsac wrote: |
| Tax on plane tickets is 10%, you can verify this with any travel agent. The agent charges the tax, not your director. It's part of the ticket cost. |
Exactly. The airplane ticket is not taxable income for you, but a refund for your expenses. Typical hagwon owner's nickel-and-dime scam. He's trying to get you to pay his income taxes on that amount of money. Call the labor board. |
If you know anything about business 'everything' that you give an employee is taxable and an owner is well within his rights to tax a ticket. |
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pegpig
Joined: 10 May 2005
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| Posted: Fri Aug 26, 2005 7:46 pm Post subject: |
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| fidel wrote: |
| If you know anything about business 'everything' that you give an employee is taxable and an owner is well within his rights to tax a ticket. |
The question is whether the boss is going to submit this 'tax' to the proper gov't dept or if it will go towards the 'baby needs a new pair of shoes' fund.
Also, the severance is taxed at a higher rate than your regular salary, so it wouldn't matter if your boss paid you the sev a month prior or at the end of the contract. It would be the same amount.
Besides, the 11th month is when you're supposed to get fired. What boss is going to pay you the severance when he can just as easily fire you. Sheesh. This is their country - learn the culture. |
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rumpolestitskin
Joined: 12 Jun 2005
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| Posted: Sat Aug 27, 2005 11:21 am Post subject: |
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Not sure one way or the other, but I don't 'think' he can withhold the tax on it from you as its an expense.
I'd be thinking about contacting efl-law and going to the labor board about it.
1st off hopefully this will sort the prob out for once and for all.
2nd ly I will show boss that you have teeth and will fight him if he does fire you. |
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Gord
Joined: 25 Feb 2003
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| Posted: Sat Aug 27, 2005 3:52 pm Post subject: |
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| rumpolestitskin wrote: |
| Not sure one way or the other, but I don't 'think' he can withhold the tax on it from you as its an expense. |
The boss can either claim it as a business expense or he can claim it was a employee benefit. If it's claimed as an employee benefit, the employee is taxed on it as though it was earned income.
Same deal with housing. It can be claimed as either.
Generally such items are not claimed as being given employee benefits, but it's not a requirement. |
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Wangja
Joined: 17 May 2004
Location: Seoul, Yongsan
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| Posted: Sat Aug 27, 2005 5:18 pm Post subject: |
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Bit don't forget to put BOTH on your US tax returns.
Shhee, I am glad I don't have a green card .... worldwide lifetime tax volunteers. |
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