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Lighten Up 29 June 2001 Edition
Previous Edition

Million $ Ideas
At last, the contents of Aardvark's "million-dollar ideas" notebook are revealed for all to see!
Click To See
More Net novelties, web weirdness and cyber craziness in this week's Lighten Up section:

Build Your Own Cow
This page lets you build your own customised cow to your exact specifications. What more could you ever want?

Men Who Look Like Kenny Rogers
Why do so many people look like this -- is it some kind of disease perhaps?

Alternative Three
What whacko wrote this? Seemingly designed as a joke/spoof, apparently some people actually believed it and now there is a cult following. But hey, If you saw/read/heard it on the Net it *must* be true... right?

A Taxing Problem
According to this story the government wants to start charging GST on imported services and electronically downloaded software sourced from overseas.

The justification is that under the present situation, local companies are disadvantaged by having to charge the tax, while direct imports are effectively tax-free.

I can understand that -- sounds reasonable -- except...

What about someone like myself who runs a website that is hosted in the USA and which does business solely outside NZ?

Am I going to have to pay GST on my web hosting charges? One would assume so. However, that hosting fee is (for GST purposes) a legitimate expense and therefore I can claim any GST back so suddenly I'm simply being asked to do extra paperwork (at my own expense) for no gain to the taxman.

So much for the goal of simplifying the tax system and reducing compliance costs eh?

More importantly -- just how are they going to police the levying and payment of the $12.50 worth of GST that will be owed on that $100 software package you download from a US website?

I wonder if this is just an other excuse to extend the powers of the proposed Crimes Amendment Bill? Will we have the IRD snooping on all our online transactions and comparing the amounts spent with individual declarations?

Or maybe it will be simpler than that. Perhaps the banks will simply be ordered to add 12.5% GST to all credit card billing made by overseas companies against an NZ-issued credit card? If so -- what about those non-IT related charges? How about the deposit you make to secure your accommodation on that tour of Europe you're taking next month? What about all those charges you rack up on your card while you're actually on holiday -- using your NZ issued credit card to buy goods and services that are not really subject to GST at all.

That's simple they'll bill you the GST anyway and you'll be forced to apply to the IRD for a refund of the GST that was slapped on those transactions. It should only take a few months to get your money back -- but isn't it a shame that you've had to lend the government part of your holiday savings at the very time you need them the most eh?

Perhaps the changes only apply to those who are already registered for GST purposes. If this is the case, will we see a growing trend for companies to invite their employees to buy software with their personal credit cards and compensate them by way of monthly (GST-free) bonuses?

But even that doesn't make sense -- since in almost every case, a business registered for GST purposes will be able to claim back the GST component of their input costs anyway -- so we're back to being lumbered with extra paper-work for no apparent reason.

Have I missed something here or is this, like so much tax legislation, just an extra burden being foisted onto the public to generate a piffling amount of gain. The only winners are likely to be the bureaucrats and the lawyers who get to prosecute the little old lady in Taihape who let her grandson user her credit card details to purchase and download a new game from the USA for his birthday but didn't file the necessary paperwork because she didn't know she had to.

But what do YOU think?

Send me your comments.

Readers Say
(updated hourly)
From Yesterday...

  • The site is ??? - msn... - Kane
  • MSDN Subscriber Forced to use Passport... - David
  • The Biblical Beast is... - GeriatricGeek
  • Word of the day... - Peter
  • Passport... - Grant
  • Have Your Say

    More on XtraMSN
    Wow... it was deja vu all over again at Xtra/MSN yesterday.

    Those who were Net users back in the "good old days" when XTRA first launched their incredibly perverted website that used a 135Kbyte graphic for the front page come main menu. Remember -- these were the days when 28.8Kbps was state of the art!

    I had numerous emails from people yesterday bitching that the new XtraMSN site was either down or loading like a stunned slug -- and some of these were Xtra subscribers using Telecom's own JetStream ADSL service!

    So why was this?

    A traceroute and a few pings showed that it wasn't a bandwidth problem -- so I guess the servers were just running out of grunt. I wonder if they've been replacing some of their Solaris boxes with Windows-based ones perhaps?


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