Three jobs, one tax bill and fairness

18 March 2013

The Euro crisis deepens with Cyprus becoming the latest country to be hit.  But remember folks, the island of Cyprus is in effect now two countries, one Greek, one Turkish.  During my army career I spent 18 months in the Greek side of the island and to be honest, I loved it out there.  I always used to say that when I was one of the idle rich I would move out there to live.  After this last weekend I'm rather pleased that I didn't get rich and didn't move out there.  Perhaps my 18 months can shine a bit of a light on what has happened to cause the current crisis out there.

The army has a lot of Cypriots working on their bases there.  There is an annual rent that is payable for those basis but at the time I was there that rent was being withheld.  The reason is that part of the agreement in paying it is that it is pent for the good of ALL Cypriots, not just the Greeks.  So when Turkey invaded the north of Cyprus in 1974 (I think), the Turkish couldn't have their share of rent - so Britain withheld the payment.  No idea if it is still being withheld though.

Now then, back to the civilian workers on the bases.  One of the men who worked in one the units I was with always had a pocket full of paper currency of various types.  I found out that he had at least three jobs; he owned a fruit farm, he owned and worked at stall in Larnaca and he worked for us.  Now here's the point of all this ...

At that time, 1976-79 workers only paid tax on one job.  As the army job paid the least amount of wages that was the one that they paid tax on.  Of course all the other money he earned was tax free.  Now work out just how much the government was losing in tax from that one man.  Now multiply that by how others were doing exactly the same.  Just as in Greece itself there was a culture of tax avoidance which everyone took part in.

The Cypriots had a saying that they were always using; 'sigara sigara' (sorry, no idea of the spelling here), which meant 'slowly slowly'.  I wasn't the only soldier who found it very annoying because that was the Cypriots way of slowing everything down.  From my experience the only things that Greeks did quickly were drinking and driving - and do mean the two together!  So add the tax avoidance and slowly- slowly attitude I'm not all that surprised that the country now has such a problem; I'm surprised that it didn't happen sooner.

Are you surprised by it all?  Whether you are or not we will be paying for it in one way or another.  The government has pledged that service and civil servants in Cyprus will be protected or compensated by if they are affected by it.  We are likely to be required to give support through our normal contributions to the EU anyway.  Our taxes being used to support a country where there is an ingrained culture of tax avoidance.  Does that sound fair and reasonable to you?  It doesn't sound fair to me!

So let's have a look for a photo then ... 

a candid shot of a drinker in the Willy White a few weeks ago.   

And for today's funny I offer ...

Robert, age 92, and Gail, age 89, living in Auckland, are all excited about their decision to get married. They go for a stroll to discuss the wedding, and on the way they pass a chemist shop and Jack suggests they go in.
Jack addresses the man behind the counter:
"Are you the owner?"
The pharmacist answers, "Yes."
Jack: "We're about to get married. Do you sell heart medication?"
Pharmacist: "Of course we do."
Jack: "How about medicine for circulation?"
Pharmacist: "All kinds "
Jack: "Medicine for rheumatism?"
Pharmacist: "Definitely."
Jack: "How about suppositories?"
Pharmacist: "You bet!"
Jack: "Medicine for memory problems, arthritis, and Alzheimer's?"
Pharmacist: "Yes, a large variety.. The works.."
Jack: "What about vitamins, sleeping pills, antidotes for Parkinson's disease?"
Pharmacist: "Absolutely.."
Jack: "Everything for heartburn and indigestion?"
Pharmacist: "We sure do..."
Jack: "You sell wheelchairs and walkers and canes?"
Pharmacist: "All speeds and sizes."
Jack: "Adult incontinence pants?"
Pharmacist: "Sure."
Jack:
"Then we'd like to use this store for our wedding presents list..."