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Do you realize you are saying that companies shouldn't pay any taxes?

• PaywallBuster 5y ago
  not really, you can run the business on your name and pay personal income taxes. Avoiding to create a separate entity which will carry additional compliance and tax costs is something else altogether, and some governments just make it too onerous
• xondono 5y ago
  No I’m not, I’m saying that some tax systems make no sense. The only way to create a company in Spain is to flunk regulations. Some are meaningless and people ignore them all the time, some aren’t. Another example. When escape rooms we’re trending, me and some friends considered building one. One of the partners didn’t want to get into trouble on it, so he wanted everything by the book. Spanish regulation requires a business to specify their “economic activity” with a codified value. The list is in the thousands, with a lot of non defined ambiguous terms. Evidently “escape room” was new, so it wasn’t on the list (and it still isn’t). The closest was “gambling business”, which of course a escape room isn’t. It also has a lot more paperwork and additional taxes. Faced with this conundrum, we went around to the 3 or 4 escape rooms that were near enough to visit and asked them. Some of them just wrote a random number and called it a day. One of them was registered as a butchers… The legal exposure it represented was simply too big and we abandoned the idea. there was no good reason for that legal exposure. The statistics then are hardly surprising. Unemployment here is >14%, just to name one.