A couple of subscribers requested an update on the opening of the new shop.
In case you've missed: my 82 year old father retired on January 1 and
it is now my duty to take care of the family shop, established in 1951
on the other side of the world. Yeah, heaps of fun.
I'll keep it brief. Dad is still refusing to hand over the keys. I mean,
he tried to con me with a set of freshly cut duplicates. A fully
functional set, nonetheless, but the message is clear: only one of us
could be the boss. The latest request: whoever takes his place, must be a
non-smoker. In addition, by his decree, the 3 meters wide street
frontage has been 'claimed' as a no-smoking zone. Of course, he knows
very well that he has no say over council land which makes this childish
attempt to insert authority completely unnecessary and a complete waste
of time.
Luckily, I do have an ally on the ground: my younger brother, who is
helping me with the shop refurbishment, installation of new lights,
sorting out a leaking tap, and painting. Having him on my side is simply
priceless. He also helped with the business registration, hiring an
accountant and book keeper, opening a bank account and interviewing
potential job applicants. Yes, I hear you - doing business with family
is a recipe for disaster. "Your brother will rip you off as soon as the
opportunity presents itself". Maybe he will, maybe he won't; I am
prepared to take the risk. At the end of the day, our plan is simple: to
keep the shop open so that our family name remains on the door.
Right now I am trying to get myself familiar with local laws, especially
regulations relating to the tax system. Quite frankly, I am amazed with
the level of compliance required to run a company in a small central
European country. In a positive way: the rules are rigid, but fair. The
Government is absolutely paranoid about two things: collection of VAT
(their GST) and protection of workers wages and payroll. Local GST is
20% which is double what we pay here. On the other hand, the company tax
rate is 15% (ours is 25%). And here is the beauty: there are only three
personal income tax brackets: 0% which applies to the income of all
middle earners, 10% for high earners (doctors for example) and 15% as an
absolute maximum rate for the 'ultra rich'. Clearly, unlike in
Australia, the Government makes money from taxing consumption, not
earnings and wages. Free education and free Medicare are the norm.
Yet before you jump on the first flight to that 'tax haven' country-
beware of a small drawback: there is always the chance that by the end
of the financial year you'll be bombed by either Putin or Biden - or
both, simultaneously.
For that reason alone, I am quite happy to conduct business remotely,
while happily residing in (still!) the best country on earth.
(to be continued) | |
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