This reminds me of the Subaru BRAT in the early '80s. There was a 25% tarrif on imported pickups. So Subaru added two plastic jump seats in the back of the BRAT, even making them face backwards. No seat belts as I recall just handles. They weren't even really intended to be used. They were just cheap plastic. But they served the purpose of making the vehicle a four-seater car instead of a pickup, with only a 2.5% tar…
Here in Norway we have the infamous "E6 ham". We have an import tax on dry-cured ham[1], but not unprocessed meat. Someone figured out it was cheaper then to import unprocessed meat from Spain to Norway, turn the truck around as soon as they were customs cleared and drive the 3000 km or so back to Spain for curing. Once cured they'd re-import the processed meat, which now has a different tariff due to being "Norwegia…
Adding unusable RAM for tax reasons
91–100 of 307 posts
Re: Adding unusable RAM for tax reasons
#92Earlier quoted context omitted.
I wonder if they could, in theory, sell you the car for 150% of it's final price (so that they seats are there when sold), then buy back the seats immediately for 50% of its price. The invoice would say something like: Car with passenger seats: $15,000; Passenger seat buyback: $5,000; Total after buyback: $10,000. That way everyone gets what they want, and they've technically sold it with the seats still installed.
Isn’t a lot of securization necessary for two more seats? Adding floor reinforcements, seatbelts, and more importantly, passing the crash tests with two more seats?
Re: Adding unusable RAM for tax reasons
#93Taxes are one of the most powerful incentives in the world. For instance, dumping positions at loss before new years eve might help you with your tax bill since you have losses. And of course, setting up a company in a country where you did buy a lot of spectrum and you have huge losses, effectively creating a tax credit ( https://www.reuters.com/article/telefonica-germany/update-2-... )
This is why Carbon Taxes should be preferred over the state dictating policies to companies.
Re: Adding unusable RAM for tax reasons
#94Earlier quoted context omitted.
Ford lost in 2019. An appeal to the Supreme Court was denied.[0] My non-lawyer understand of the issue wasn’t so much that they were avoiding a tariff (“tariff engineering”), but that they were removing the seats upon entry. In contrast with the BRAT where the dummy seats were still there when sold. [0]: https://www.autoblog.com/2021/06/03/ford-transit-connect-imp...
So in your view they just felt like adding seats and then removing them later?
Re: Adding unusable RAM for tax reasons
#95Earlier quoted context omitted.
Here in Norway we have the infamous "E6 ham". We have an import tax on dry-cured ham[1], but not unprocessed meat. Someone figured out it was cheaper then to import unprocessed meat from Spain to Norway, turn the truck around as soon as they were customs cleared and drive the 3000 km or so back to Spain for curing. Once cured they'd re-import the processed meat, which now has a different tariff due to being "Norwegia…
source? upon searching for "e6 ham", "norway ham tax", "e6 skinke" etc found only this post.
Re: Adding unusable RAM for tax reasons
#96Earlier quoted context omitted.
It seems that the issue was that Ford, the importer, changed the class of vehicle between import and being sold inside the US. Presumably if you aren't the importer you can go wild (IANAL).
Yeah, so they're really just getting punished for not dotting their is and crossing their ts. They could create a subsidiary with the same board of directors as Ford that they sell the cars to, and then the subsidiary does the dirty work of repurposing the cars from passenger vehicles to cargo vehicles. They skipped paying the $100 corporate registration fee, so now they're on the hook for a billion dollar fine that…
Re: Adding unusable RAM for tax reasons
#97Earlier quoted context omitted.
A seafood company in Canada has a 100 foot section of train track, where they load trucks on and right back off, in an attempt to get around the Jones Act requirement that goods shipped between 2 points in the US must use US flagged vessels https://www.adn.com/business-economy/2021/09/15/feds-accuse-...
We need something like the senate filibuster debate rule for taxes. Basically just state that there is this thing I can do to skirt the tax system so I declare a tax evasion without having to actually make people do stupid stuff.
Re: Adding unusable RAM for tax reasons
#98Earlier quoted context omitted.
This is why Carbon Taxes should be preferred over the state dictating policies to companies.
Carbon taxes seem to be pretty unpopular and I think it’s a failure of imagination for climate economists to keep repeating the same idea instead of trying to find things that are more palatable.
Re: Adding unusable RAM for tax reasons
#99Earlier quoted context omitted.
How long does the rule apply for? If someone removes seats from their van, is that tax evasion? What if it's temporary? If an individual can do it, why not Ford? The problem I have here is how easy it is to avoid the tax. CBP shouldn't have any jurisdiction over car modifications and repairs; that responsibility falls to different agencies.
The courts tend to take a dim view of "clever hacks" to get around the law, where the intent is clearly to circumvent the law and the action has no other purpose. They don't always rule that way. But if you pull this kind of stunt, you risk the court saying, "Very clever. No."
Re: Adding unusable RAM for tax reasons
#100Earlier quoted context omitted.
It also goes to show how corrupt the import tax system is. Why SHOULD a cargo van have higher import taxes than a passenger van, other than to serve the needs of some random private company? Even moreso, I wouldn’t be surprised if Ford lobbied FOR those laws before changing its mind in where to produce a particular sku
It sounds like the age-old market segmentation thing. People driving their kids to soccer practice don't make money with their vans, so they'll notice the higher price (and if they find out their congresscritter was responsible, they'll vote for a different one). Meanwhile, cargo vans are used to make money, so the users can bear the extra cost. There's also overtones of taxation without representation going on here;…