3 ms·
> Authorities reportedly believe the smuggler went to the lengths he did in an effort to avoid Japan’s 10-percent import tariff. To my understanding, when sell
by idiocrat 2y ago
> Authorities reportedly believe the smuggler went to the lengths he did in an effort to avoid Japan’s 10-percent import tariff.
To my understanding, when selling in Japan, the smugglers will need to either declare the capital gain tax, or sell it (at some) the black market heavily discounted.
When determining the capital gain tax, if no purchase receipt (=purchase price) can be provided, the purchase price is set at 10% of the current market value, leading to a big capital gain tax.
In any case it will be difficult for the smuggler to make up the savings of the 10% import tariff.
To my understanding, that 10% tariff is actually an added 10% consumption tax, which can be claimed back when transporting gold out of Japan.
- WatchDog 2y agoThe real reason is because of Chinas strict capital controls. Presumably the authorities(Chinese) are trying to deflect from that.
- rmbyrro 2y agoOr even more likely because the origin of the gold [1]. [1] "‘Gold bars and Moutai’: TV series spotlights China’s corrupt officials" - https://www.ft.com/content/25e510aa-77bc-4a3d-be3b-0ed19f6bbfcb https://www.ft.com/content/25e510aa-77bc-4a3d-be3b-0ed19f6bb...
- tim333 2y agoAh - I was wondering about that. When I lived in HK long ago it was famous for not having any import export controls apart from for drugs and weapons. It made it a very cost effective place to trade from on account of the lack of bureaucracy and paperwork.