The hardest thing to understand in the world is the income tax.
As a manager, there are three domains which I try to avoid as much as I can.
Taxes, Intellectual Property and Real Estate.
They all seem to have an arbitrary logic, which is highly non intuitive, non useful, complex and out dated.
In many cases it seems they are controlled by people who make their living from making it more complex, rather than making it simple.
And the worst is when you get a combination of these domains in a business decision:
- We can’t merge these companies because we will have to pay a tax for “IP”
- We cannot move this activity to Israel because our IP is listed in New Zealand
- We can’t sell this division ,which we don’t need, because we already wrote it off as a tax loss
- If we buy more real-estate we “earn” more money for tax benefits
I understand that “Taxes and Death” are the only two certain things in life. I also understand that Intellectual property can provide big income for patent Trolls. I even realize that selling and buying real estate is a great way to become a rich daddy.
But I prefer to leave these to other people. Thank you very much 🙂