Forum Home
PC World Chat
Thread ID: 64244	2005-12-08 18:20:00	A bit of a Bank - Tax fiddle	Eric Richards (6226)	PC World Chat

Post ID	Timestamp	Content	User
411392	2005-12-08 18:20:00	Here is something you people should take notice, and you should look at your bank if you have multiple accounts and if any good ideas come from this thread I will follow it up . At the moment I have three accounts with the same bank, (1) Credit card, I don't take it with me when I go shopping came in handy early this year when I went to the dentist . (2) a standard bank account, I have my pay put into it, and use it when I go shopping for EFTPS and getting cash . (3) a “serious saver” it pays a bit higher interest but cost money when you make a withdrawal a small some of money gets taken from my main account and put into this account, part way through the year I had the amount increased because I was spending too much . it will used for holiday because holiday pay is not enough . (I hope I will have some left when I go back to work) Last month from the “serious saver” I had $5 . 97 in “Interest earned” and $1 . 16 in “Tax paid” But here is the whinge But the problem is if you look at the net amount earnt form the bank on all three accounts, you might find that I never got that $5 . 97 in interest because it payed the bank in other fees . Sure I might put money into the bank and when I go to use it inflation might bite into that so it might not be worth the money when it went into the bank . But my main point is, my net earnings from my bank might be a negative amount, were I don't earn a cent from the bank because what I earn goes to other accounts in bank fees Now the hot line If you you are in the same boat, WHY SHOULD WE PAY TAX?	Eric Richards (6226)
411393	2005-12-08 18:52:00	Maybe I'm thick, but what is the correlation between fees you pay to the bank and tax you pay to the government on unearned income?	Terry Porritt (14)
411394	2005-12-08 19:11:00	And on top of that,he probably voted labour :)	Cicero (40)
411395	2005-12-08 19:13:00	I think what he is trying to say is: why do banks take more in fees than you earn in interest, then charge you withholding tax on the interest that has been cancelled out by the fees? I had a moan at my bank about this a while ago. Even though I regularly have fairly large amounts in my savings account (to pay the tax man) and it earns interest, the interest earned is totally offset by the increasing number of fees that the bank think of to add on. These now include: On-line banking maintainence fee One off transaction fee Eftpos transaction fee 'Other bank' eftpos fee Automated transaction fee Overdraft fee (whether you use the overdraft or not) Credit card yearly renewal fee There are probably a few others that I can't remember.	Shortcircuit (1666)
411396	2005-12-08 20:10:00	Terry's right - the fact that the interest cancels (or contributes to cancelling) the fees you pay to the bank is entirely co-incidental. Interest is counted as "income" and tax is collected as a result. I'm no accountant, but bank fees are not deductible against your tax.	Lizard (2409)
411397	2005-12-08 20:36:00	If you are a business, and it is a business account, then the fees can be claimed as expenses in your financial performance summary, thus reducing your profit, and hence, your tax. Or increasing your tax receipt if you're making a loss :D	roddy_boy (4115)
411398	2005-12-08 21:24:00	The best way to minimise bank fees is to achieve retirement age and have your pension paid in. :thumbs:	Terry Porritt (14)
411399	2005-12-08 21:26:00	You could always ditch the bank and carry all your money around in cash bag www.virginiapaydayloans.com Or leave it at home under the bed. I think it's a small price to pay for the safety and convinence.	Rob99 (151)
411400	2005-12-08 21:29:00	The best way to minimise bank fees is to achieve retirement age and have your pension paid in. :thumbs: To be helpful,you will have to tell us how to accelerate the process. Achieve..to gain with effort. Oh dear.	Cicero (40)
411401	2005-12-08 21:37:00	To be helpful,you will have to tell us how to accelerate the process. Achieve..to gain with effort. Oh dear. I choose my words carefully, and that's right, you have work hard at it. :nerd:	Terry Porritt (14)
1 2 3 4 5