So who pays the sales tax and the federal and state income tax on the gift? He could be on the hook for $20k or $30k.
“So who pays the sales tax and the federal and state income tax on the gift? He could be on the hook for $20k or $30k.”
Obviously you didn’t read the article.
not a gift. Settlement of a contractual obligation.
They had a senior mechanic at the Mercedes dealer in Nairobi who totaled a customers SL-300 (IRRC). The customer was a government minister (Transportation?)
The dealer immediately told the customer that they would get him a new car.
He said, “No, I want you to pay me for the price of the car, plus Sales Tax and Import Duty. Sales Tax and Import Duty are compounded, which brought the total to US$2.3 Million!
No one believed that the government minister would pay more than a tiny fraction of applicable Tax & Duty.
IIRC, Sales Tax was 150% and Duty was 240%. Kenya wanted to charge us US$76,000 in taxes for our $12,700 Land Cruiser utility model.
We registered it in Uganda for “only” $4,500.