Customs Reviewing OMV Tactic

[audicious]

Interesting....

 

[wkwlb]

Re: Customs Reviewing OMV Tactic

bad news for PI...and PML!!!!

and eventually consumers...

 

[lucas111]

Re: Customs Reviewing OMV Tactic

Can you tell me more about this tactic? How does PML import the cars with low OMV?

 

[Terry]

Re: Customs Reviewing OMV Tactic

what are u guys talkig about

 

[davidtch]

Re: Customs Reviewing OMV Tactic

It is a transfer pricing issue.

 

[kenntona]

Re: Customs Reviewing OMV Tactic

If you view the structure of import taxes, it is a function of ARF (100% of OMV) and excise tax (20%).

Does underclaring OMV tantamounts to tax evasion?

 

[Jason8822]

Re: Customs Reviewing OMV Tactic

If there are 3 parties involved in getting the car here, this is not so straight forward.
Manufacturer -> Asia Principle -> Distributor

 

[davidtch]

Re: Customs Reviewing OMV Tactic

If you view the structure of import taxes, it is a function of ARF (100% of OMV) and excise tax (20%).

Does underclaring OMV tantamounts to tax evasion?

In this case, importer declared its OMV based on invoice price from principal irregardless whether principal is making profit or loss on the product sold. It is more of a transfer pricing issue. in most jurisdiction, when sales transaction involves 2 related parties, it should be done on "arms length" basis. But car from each manufacturers are different, how do tax authority determine "arm length" price?

If there are 3 parties involved in getting the car here, this is not so straight forward.
Manufacturer -> Asia Principle -> Distributor

Distributor is not in the picture as Asia principle most likely the importer. It is not so straight forward unless tax authority is able to determine manufacturer is able to find "arm length" price.

 

[kenntona]

Re: Customs Reviewing OMV Tactic

In this case, importer declared its OMV based on invoice price from principal irregardless whether principal is making profit or loss on the product sold. It is more of a transfer pricing issue. in most jurisdiction, when sales transaction involves 2 related parties, it should be done on "arms length" basis. But car from each manufacturers are different, how do tax authority determine "arm length" price?

Is under-invoicing a crime?

 

[wt_know]

Re: Customs Reviewing OMV Tactic

is overtrade a crime, which is as high as $30k leh ...

 

[davidtch]

Re: Customs Reviewing OMV Tactic

Is under-invoicing a crime?

Under-invoicing between related parties - Yes
Under-invoicing between unrelated parties - No

 

[ACS CAB3]

Re: Customs Reviewing OMV Tactic

I don't understand what you mean by the latter point. What i know is to undervalue invoice to evade tax is a crime lor... no?

 

[toiletsiao]

Re: Customs Reviewing OMV Tactic

hopefully they dont clamp down else cars will be even more expensiveee in future ... low OMV alone doesnt translate to cheap prices(PML is good example)...high OMV definately translate to higher prices....

 

[MaicoOens]

Re: Customs Reviewing OMV Tactic

It is more of a transfer pricing issue. in most jurisdiction, when sales transaction involves 2 related parties, it should be done on "arms length" basis.


virtual assistant

 

[thongsoon]

Re: Customs Reviewing OMV Tactic

I don't mind to buy a car with low omv but I want the upfront saving