Its in our nature that we will seek out any advantages that we can get in our life to make it easier. Its also i our nature to look up and try to own nice valuable things, to get the fel of accomplishment when we spend money, a reward.
More often than not it all comes with steep price, unfortunately when it comes to Exotic cars the steep price comes twice in most cases not only u had to pay for the car itself there are other mandatory expenses that often come as percentage values of car’s value.
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| Bugatti Veyron source:Bugatti Site |
Registration tax in most US states comes at a cost, the more valuable your car is the more registration tax you are gonna pay just to register your property. If you would like to register your 2015 Bugatti Veyron worth nowadays around 3.5 million USD in let's say state of California it would cost you around 280 000 USD for a license plate. In Montana on the other hand since there is no sales tax it would cost you around 1000 USD.
That’s why most of the exotic cars in the US are getting registered in Montana.
Just recently state of Georgia police started cracking on Georgians who do follow such practice.
Here is a video explaining most of the issue that Georgia is dealing with right now :
Just recently state of Georgia police started cracking on Georgians who do follow such practice.
Here is a video explaining most of the issue that Georgia is dealing with right now :
- In your opinion who is at fault here, the state, car owners, maybe issue lies in between ?
- Do you know any loopholes that give u advantage in Polish law ?
- How do you feel about such post sale taxes ?
- Is there any fault in mentioned LLC companies which made business out of such practice ?
Comments
The 7% registration sale tax is crazy high in my opinion. States that enforce it would benefit more if they lowered it and encourage citizens to register their property locally. Instead, these states scare them away and, as a result, earn less money than expected.
As for loopholes in Polish law — well, even if I knew some, I wouldn’t share them with you. ;)
I think it is the state at fault.
Do you know any loopholes that give u advantage in Polish law?
No, I don't.
How do you feel about such post-sale taxes?
I feel like state/country is trying to earn money on whatever they can.
Is there any fault in mentioned LLC companies which made a business out of such practice?
I don't think so, they simply use the gap in the law.
I am not aware of such practices in Poland, but as I know it is very popular among ships on the sea. Like cars, ships have to be registered, and different countries have different cost of it. Therefore ship owners register them in “cheap countries” like Liberia, and whole issue is called Flag of convenience.
I think that such post sale taxes are extremely unfair, if they really want to introduce it, they shouldn’t enforce people who already registered it to do it again just because they can get enormous amount of money from tax.
I don’t think there is any fault of LLC companies, that wasn’t explicate illegal business.
For 3 years leaving in Poland never had a need to search for loopholes.
One more tax for beeing rich is kind of another way to equilize people not by ability but by sole existance that I think not good.
I do not know such gaps in Polish law, but I think that it is not worth looking for such things because it destroys the state. Simply everything should be made with common sense.
As for the last sub-point, I have no idea.
The only gap in Polish law I know the records of a car for 2 people, eg me and my father, and then we get Dad's insurance.
I think that there is no error and everyone should continue to act as before.
I don't know any loopholes in polish law, but I wouldn't search for them - in Poland law works backwards, so it might not be worth it
It's hard to point the guilty in this situation, but the position of the state is very sad, spending such money on the car, nobody want to pay such huge money to the state for nothing ... I think that if you buy such a car for such a price country should reduce the percentage of tax which citizen would have to pay for a supercar.
I am not convinced that this company is committing a crime, it certainly helps these people to save money. If I would live in such a country, I think that I would use the services of LLC.
2. Few years ago there was a real boom in Poland on registering passenger cars as trucks to be be entitled VAT tax deduction on car purchase, fuel and repair. I think that currently the deduction is limited to only 50 %. Another strategy which is similar to the one mentioned in the video is registering luxurious cars in Czech Republic. The mechanism is almost the same as in the article. People from Poland open LLCs by themselves or by brokers and move their expensive cars into those LLCs. The reason is that in Poland when buying a car with engine capacity larger than 2 litres 18,6 % excise tax is added, which is not a case in any other EU country.
3. I find these post sales taxes very unfair, as it was mentioned in the comments above when buying a car you have to pay VAT tax, moreover in many countries (i.e. Poland) tax is a significant part of the fuel price you pay at a gas station.
4. Once again “"Everything which is not forbidden is allowed" principle applies and those companies do not break the law. However they are making money on the actions which are unethical and morally questionable.