Mr Bearbull 

Taxing times

Mr Bearbull

Mr Bearbull

Withholding tax – it’s a generic label for any tax due on a lump of cash that’s handed over by the payer on behalf of the recipient. In developed countries lots of taxes are a withholding tax. Not surprising really because they’re an efficient way to raise revenue. In effect, a government sees cash passing from A to B and says 'I’ll have some of that'. It helps that there's no question the tax can’t be paid; after all, the cash is already there, just waiting to be top-sliced for the benefit of the state.

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