An update

 

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)