Quote:
Originally Posted by HarryT
Because the law says that you have to? Most states have a "use tax" under which, if you buy something out of state and hence pay no sales tax, you have to pay the equivalent of what you would have paid in sales tax if the product is used or consumed in your state. This is what I was referring to when I said that there is tax evasion on a massive scale: many people fail to declare or pay use tax.
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I've never been one to accept the "Because I said so" answer. One of the great truths is that bad laws tend to be mostly ignored, especially when the citizens see it as a pure money grab. In many countries, avoiding taxes is a way of life. In the US, people ignore speeding laws in much the same manner, mostly because people see speeding laws as a pure money grab rather than a safety issue. The funny thing is that over time, the speeders are winning the battle. Speed limits are being raised all over the US, to match the safety conditions rather than the desire for revenue. Some said that people would continue to drive over the speed limit, but a funny thing happened. People started driving at a speed they felt was safe. The average speed locally didn't change much, even though the speed limit went from 55 to 70+.
Unless the company involved has a physical presence in New Zealand, New Zealand will have a great deal of trouble trying to enforce the new law. There is very little they can do to some Mom and Pop store selling over the internet.