In my country, companies have to register to pay for VAT if they earn a taxable income of P250,000 annually. Up until April this year, people were charged VAT of 10% since 2002. It has now risen to 12% to consumers.
since companies need to register, some just go without registering, or the smaller ones go on and charge consumers for VAT, and claim it is the law, and go forth and pocket the money.
This has proved to be a great problem, especially with the current economic crisis, with a rise in inflation. Business are abusing the 2% rise in VAT by charging even more then the expected amount, making the already expensive prices even more so.
In the wake of what some have called “unwarranted price increases” after the VAT rate was increased from 10 to 12 percent effective 1 April, there are calls for the re-introduction of price controls. Notably, what is a price control? It is “a form of government intervention in the economy in which a government agency uses its law-making power to regulate the prices at which otherwise voluntary private exchanges may take place (Johnson 2005)”. Notably, price controls have a long history; e.g., medieval governments placed price ceilings on bread (Rockoff 2002) and modern governments experiment with all kinds of price controls (Zimbabwe offers instructive lessons). Thus, price controls are effected through either ceilings (maximum legally allowable prices) or floors (minimum legally allowable prices). In the present case, most caller consumers were advocating for price ceilings.
To conclude, price controls are generally opposed by economists because they result in market inefficiencies; chiefly, shortages or surpluses. Arising from the foregoing, they are only countenanced under exceptional circumstances; e.g. emergencies, and for brief periods. Thus price controls are bad public policy prescriptions. As a solution, consumers, as utility-maximising homo economicus [economic men] must comparison-shop and, at a macro-level, laws that outlaw socially-undesirable behaviour and protect consumers (e.g., Competition Act) must be enforced.
Written by DR EMMANUEL BOTLHALE
http://www.gazettebw.com/index.php?option=com_content&view=article&id=6176:vat-rate-increase-and-the-call-for-price-control&catid=21:columns&Item
Sunday, April 25, 2010
Nemo Dat Quod Non Habet
Nemo dat quod non habet signifies that if you are not the legitimate owner of an item you are not justified to despatch it to anybody else as you cannot give something that does not belong to you, i.e. you do not have. This is designed to protect the true owners. If anybody is trying to sell an item without that legitimate owner’s permission, however, that transaction is unlawful. This principle is clarified in Section 27 of the Sale of Goods Act which explains that anybody purchasing something without the consent of the legitimate owner only attains the same rights to an item as the dishonest seller. An unauthorised vendor only obtains the capacity to sell this item if the rightful owner is disallowed, by some behaviour, from giving permission to this unauthorised sale.
http://www.law-essays-uk.com/2-1-essays/nemo-dat-quod-non-habet.php
What really was to happen if this law was not there? well the answer is quite simple - total and utter chaos!
what would happen is that people would automatically assume that just because something is there lying around, they can easily take it and do with it as they choose, and forget about the person who bought it, and may still need the item.
Say for example, a car. If Aunt Jane was to come by and just decide to take my vase which I bought at an auction for exorbitant amounts, and decide to sell it, or I decide to borrow Uncle Tom my car for the week, and he goes and sells it to his friend because at the time, he considers it his and can do with it as he pleases.
This is exactly what we are trying to avoid. If I bought a good legally, then it is my legal right to sell it when I choose, and not have somebody else buy it.
As such, that is why we have the Sale of Goods Act, which protects people in such situations.
http://www.law-essays-uk.com/2-1-essays/nemo-dat-quod-non-habet.php
What really was to happen if this law was not there? well the answer is quite simple - total and utter chaos!
what would happen is that people would automatically assume that just because something is there lying around, they can easily take it and do with it as they choose, and forget about the person who bought it, and may still need the item.
Say for example, a car. If Aunt Jane was to come by and just decide to take my vase which I bought at an auction for exorbitant amounts, and decide to sell it, or I decide to borrow Uncle Tom my car for the week, and he goes and sells it to his friend because at the time, he considers it his and can do with it as he pleases.
This is exactly what we are trying to avoid. If I bought a good legally, then it is my legal right to sell it when I choose, and not have somebody else buy it.
As such, that is why we have the Sale of Goods Act, which protects people in such situations.
Why are prisoners not hired
According to the laws of every country, when a person is taken to prison in order to achieve the four aims of the criminal justice system:
Punishment
deterrence
rehabilitation
protection (of society from further acts)
the courts then decide what is the appropriate number of years the criminal deserves to be held behind bars in order to meet the aims I have stated above.
After being released, often as part of their requirements is to find a job. Unfortunately one of the question asked is whether or not a person has served time in prison, and more often than not, it becomes the basis for their rejection.
If government is putting so much funds in keeping these people locked up for years on end, feeding and clothing them, why do they not put a bit more funding to making sure that they are able to find jobs, because if they are able to accomplish the rehabilitation process, then they should be able to work well. If however, these former criminals are unable to find employment, they get desperate for work, or food, end end up resorting to their old ways, which takes them back a step, and makes it easy for them to go back to jail. The rehabilitation process would have worked, but only for a limited period of time, due to the harsh environment of the outside world.
We should therefore consider helping out these people, because it is also our job to assist in deterring them from their lives of crime. If they become unemployable, then they resort to other means, which we all do not want.
Punishment
deterrence
rehabilitation
protection (of society from further acts)
the courts then decide what is the appropriate number of years the criminal deserves to be held behind bars in order to meet the aims I have stated above.
After being released, often as part of their requirements is to find a job. Unfortunately one of the question asked is whether or not a person has served time in prison, and more often than not, it becomes the basis for their rejection.
If government is putting so much funds in keeping these people locked up for years on end, feeding and clothing them, why do they not put a bit more funding to making sure that they are able to find jobs, because if they are able to accomplish the rehabilitation process, then they should be able to work well. If however, these former criminals are unable to find employment, they get desperate for work, or food, end end up resorting to their old ways, which takes them back a step, and makes it easy for them to go back to jail. The rehabilitation process would have worked, but only for a limited period of time, due to the harsh environment of the outside world.
We should therefore consider helping out these people, because it is also our job to assist in deterring them from their lives of crime. If they become unemployable, then they resort to other means, which we all do not want.
Sale of goods
A rogue went to buy a Mitsubishi Shogun on hire purchase. The rogue told Shogun Finance Ltd that his name was Mr Patel and produced Mr Patel’s driving licence. The finance company did a credit check on Mr Patel, finding no problems, and the rogue drove away. Then, the rogue sold the car to Mr Norman Hudson. Under s.27 Hire Purchase Act 1964 a non-trade buyer of a car who buys in good faith from a hirer under a hire purchase agreement becomes the owner, so Mr Hudson would have been the owner if the hire purchase agreement were valid. Shogun Finance argued that it was not on the basis that there was a mistake as to identity. They therefore claimed against Mr Hudson for conversion.
http://en.wikipedia.org/wiki/Shogun_Finance_Ltd_v_Hudson
From the case above, it is clear that Mr Hudson did not know that he was purchasing a car that did not belong to the seller. the problem however, should also be the responsibility of the finance company, since they had originally not found any problems. Had they done a more thorough check, then maybe they would have been able to avoid this problem.
the rogue was to have been able to account for his wrongful actions.
According to the judgement, there was no contract of hire purchase between Shogun Finance and the rogue, so that the car was not Mr Hudson's.
http://en.wikipedia.org/wiki/Shogun_Finance_Ltd_v_Hudson
From the case above, it is clear that Mr Hudson did not know that he was purchasing a car that did not belong to the seller. the problem however, should also be the responsibility of the finance company, since they had originally not found any problems. Had they done a more thorough check, then maybe they would have been able to avoid this problem.
the rogue was to have been able to account for his wrongful actions.
According to the judgement, there was no contract of hire purchase between Shogun Finance and the rogue, so that the car was not Mr Hudson's.
Process for Insurance Claims for Wrongful Termination Settlements
The following is an article on the steps that should be taken when a person has been wrongfully terminated, in regards to the insurance claims. Hope it will be useful and help those who are not in the know on what to do.
Formalizing Settlement
When an offer to settle a wrongful termination claim involving insurance is accepted, the normal procedure is for the insurance company to prepare a release of claims against the insured--that is the employer against whom the claim was made. This will usually be done by the attorneys representing the insurance company. The release may also include a release of claims against the insurance company for any potential claims you might have against the company. If such a release is to be included, this issue should be negotiated before finalizing the settlement. You may be required to have your signature notarized on the release. The release will also specify the terms of payment either as a lump sum or instalments.
Lump Sum Payment
A lump sum payment should be made in the amount stated in the release and can be made by check, wire or draft. If you handled the claim yourself, the payment will be sent directly to you. If the payment is to be delivered to your attorney, some states require that you be notified directly in writing that the payment was delivered along with any cover letter that accompanied the settlement payment. After receipt by your attorney, the settlement payment should be disbursed by your attorney according to the retainer agreement you signed with her.
Structured Settlement
A structured settlement means the insurance company will make installment payments to you over time. The insurance company typically purchases an annuity to fund the settlement to make the regular payments. You may be require to sign a separate agreement for a structured settlement that would contain more specificity regarding the terms of payment than will be set forth in the release. An important point to keep in mind regarding structured settlement annuities is that further court proceedings may be required if you even desire to sell your right to receive the annuity payments for a lump sum.
Dismissal of Proceedings
If a lawsuit was filed on your claim, a dismissal will be prepared and filed with the court. Your attorney will usually prepare, sign and file the document once the settlement payment has been delivered or the structured settlement annuity put in place. In cases where the employer may have filed a cross-claim in the lawsuit against you, this should also be part of the dismissal. If the claim was being arbitrated rather than going through the court, there should be a document indicating that the arbitrator was notified of the settlement and that he was instructed to close the arbitration file.
By Joe Stone
http://www.ehow.com/how-does_5572611_process-claims-wrongful-termination-settlements.html
Formalizing Settlement
When an offer to settle a wrongful termination claim involving insurance is accepted, the normal procedure is for the insurance company to prepare a release of claims against the insured--that is the employer against whom the claim was made. This will usually be done by the attorneys representing the insurance company. The release may also include a release of claims against the insurance company for any potential claims you might have against the company. If such a release is to be included, this issue should be negotiated before finalizing the settlement. You may be required to have your signature notarized on the release. The release will also specify the terms of payment either as a lump sum or instalments.
Lump Sum Payment
A lump sum payment should be made in the amount stated in the release and can be made by check, wire or draft. If you handled the claim yourself, the payment will be sent directly to you. If the payment is to be delivered to your attorney, some states require that you be notified directly in writing that the payment was delivered along with any cover letter that accompanied the settlement payment. After receipt by your attorney, the settlement payment should be disbursed by your attorney according to the retainer agreement you signed with her.
Structured Settlement
A structured settlement means the insurance company will make installment payments to you over time. The insurance company typically purchases an annuity to fund the settlement to make the regular payments. You may be require to sign a separate agreement for a structured settlement that would contain more specificity regarding the terms of payment than will be set forth in the release. An important point to keep in mind regarding structured settlement annuities is that further court proceedings may be required if you even desire to sell your right to receive the annuity payments for a lump sum.
Dismissal of Proceedings
If a lawsuit was filed on your claim, a dismissal will be prepared and filed with the court. Your attorney will usually prepare, sign and file the document once the settlement payment has been delivered or the structured settlement annuity put in place. In cases where the employer may have filed a cross-claim in the lawsuit against you, this should also be part of the dismissal. If the claim was being arbitrated rather than going through the court, there should be a document indicating that the arbitrator was notified of the settlement and that he was instructed to close the arbitration file.
By Joe Stone
http://www.ehow.com/how-does_5572611_process-claims-wrongful-termination-settlements.html
land fraud case
A fraud trial involving the purchase of state land, the name of the Mentri Besar and “brokerage” payments worth RM9.4mil finally came to a close of sorts in the Sessions Court after 14 years.
judge Sabariah Atan convicted land broker Yap You Jee, 61, bomoh Md Jhomi Md Supian, 56, and businessman Johari Mansor, 52, of cheating Solid Estate (Sarawak) Sdn Bhd director Datuk Ding Lian Cheon into believing they had obtained approval from the state executive council for the purchase of Lots 21448 and 1152 of state land.
Sentenced to jail terms of between three years and six years, the three are appealing to the High Court.
In the first conviction, the three had at a meeting at the Hyatt Regency Hotel here between June 28, 1995 and July 25, 1995 told Ding that the said land in Jalan Skudai could be acquired for RM7.5mil plus a land premium of RM15 psf.
They received a Hongkong and Shanghai Bank cashier’s order for S$3.45mil (RM6.14mil), which they cashed by using a false identity card bearing the name of the Johor Mentri Besar – Abdul Ghani Othman.
Md Jhomi and Johari were also convicted of a second charge of cheating Ding – at Hotel Tanahmas in Sibu, Sarawak on Sept 10, 1995 – into believing that they had got the state executive council to cancel the payment of the premium.
On Sept 23, they obtained a payment of RM2mil from Ding at Hotel Hyatt Regency in Johor Baru for that service.
Md Jhomi, who had posed as the Mentri Besar’s private secretary, was also convicted of cheating Ding into believing he had obtained approval to extend the lease of the two plots of land from 99 years to 999 years. He received a payment of RM1.3mil for the services.
http://thestar.com.my/news/story.asp?file=/2010/4/25/courts/6129101&sec=courts
these men decided to sell land which did not belong to them, and thus the result in this case seems fair. The crime that they committed goes against the rule of Nemo dat quod non habet, which simply states that no one can give what he does not have.
since the property did not belong to them in the first place, they should not have had any transactions involving it.
judge Sabariah Atan convicted land broker Yap You Jee, 61, bomoh Md Jhomi Md Supian, 56, and businessman Johari Mansor, 52, of cheating Solid Estate (Sarawak) Sdn Bhd director Datuk Ding Lian Cheon into believing they had obtained approval from the state executive council for the purchase of Lots 21448 and 1152 of state land.
Sentenced to jail terms of between three years and six years, the three are appealing to the High Court.
In the first conviction, the three had at a meeting at the Hyatt Regency Hotel here between June 28, 1995 and July 25, 1995 told Ding that the said land in Jalan Skudai could be acquired for RM7.5mil plus a land premium of RM15 psf.
They received a Hongkong and Shanghai Bank cashier’s order for S$3.45mil (RM6.14mil), which they cashed by using a false identity card bearing the name of the Johor Mentri Besar – Abdul Ghani Othman.
Md Jhomi and Johari were also convicted of a second charge of cheating Ding – at Hotel Tanahmas in Sibu, Sarawak on Sept 10, 1995 – into believing that they had got the state executive council to cancel the payment of the premium.
On Sept 23, they obtained a payment of RM2mil from Ding at Hotel Hyatt Regency in Johor Baru for that service.
Md Jhomi, who had posed as the Mentri Besar’s private secretary, was also convicted of cheating Ding into believing he had obtained approval to extend the lease of the two plots of land from 99 years to 999 years. He received a payment of RM1.3mil for the services.
http://thestar.com.my/news/story.asp?file=/2010/4/25/courts/6129101&sec=courts
these men decided to sell land which did not belong to them, and thus the result in this case seems fair. The crime that they committed goes against the rule of Nemo dat quod non habet, which simply states that no one can give what he does not have.
since the property did not belong to them in the first place, they should not have had any transactions involving it.
Lease of Contract
One of the common contracts that people enter into is the contract of lease. Most people, especially in towns, are renting some property. It is therefore apt that there is some level of understanding of the relevant rights and obligations that arise as a result of this nature of contract. Many things can be leased, both movables and immovables.
You can rent a house or a car, for example. A lease is a contract between two parties giving rise to reciprocal obligations, the lessor (landlord) on the one hand, having to avail to the lessee (tenant) the property or thing to be leased for a particular period of time in exchange for rent or payment instances. Rent does not necessarily have to be paid in cash it could be in exchange for counter performance. A lease must be distinguished from sale. In a sale the seller intends to transfer every right the seller has in the thing to the buyer, whereas, in a lease it is a conferment of a temporary enjoyment of the property.
The parties to a lease need to reach consensus on the property to be leased, it must be in existence and be identifiable, to the use and enjoyment of the property and the amount of rent payable. Considering that the contract is for the use and enjoyment of the property (which is the substance of the contract), the contract will not be a lease if the parties intend that the lessee is to have the property permanently or deplete or consume it. The parties normally agree on the duration of the lease, this may vary; it may be a short period or an indefinite period terminable by giving notice. In the event that it is a long lease, usually described to be 10 years and more, they maybe a need to register the lease against the property with the Deeds Registry to be enforceable against third parties like buyers. The principle is that lease comes before sale. The lease may be renewal. This gives the tenant the option to renew it on its expiry. There may be formalities that are required for the renewal to be effective. So, it is important that the tenant must comply fully with the option clause. This may require giving a month’s notice before termination. This may be necessary to forewarn the landlord that the house will be vacant and he must look for another tenant or that you are going to continue staying in the house and a new contract must be drawn.
The parties usually agree on the amount for rent and maybe an escalation after the first anniversary of the lease. The parties may fix the rent amount or agree on a formula by which rent can be calculated. In other jurisdictions, such as the United Kingdom (UK), tenants pay council tax and the landlord must deposit a copy of the lease with the local council to enable the council to know from whom to collect tax.
To enable the tenant to take up occupancy of the house, the landlord must deliver free and undisturbed possession of the property to the tenant. If the property requires a right of passage through another’s property, the landlord must arrange and secure servitude in favour of his property. The property must also be delivered in a reasonable state of repair under the circumstances. If there is somebody else in occupancy of the rented property, the landlord may find himself/herself in a legal squabble, either being sued for specific performance or for breach of contract. It is therefore critical that the landlord should guarantee delivery of the use and occupation of the leased property at the time agreed upon.
Written by Batsho nthoi
http://www.gazettebw.com/index.php?option=com_content&view=article&id=6174:contract-of-lease&catid=21:columns&Itemid=2
This is a basic explanation on the requirement of lease of contract which I have spoken about earlier on. It basically tells what is expected of them when they do enter into contract, what the tenant and landlord's responsibility is in each case.
You can rent a house or a car, for example. A lease is a contract between two parties giving rise to reciprocal obligations, the lessor (landlord) on the one hand, having to avail to the lessee (tenant) the property or thing to be leased for a particular period of time in exchange for rent or payment instances. Rent does not necessarily have to be paid in cash it could be in exchange for counter performance. A lease must be distinguished from sale. In a sale the seller intends to transfer every right the seller has in the thing to the buyer, whereas, in a lease it is a conferment of a temporary enjoyment of the property.
The parties to a lease need to reach consensus on the property to be leased, it must be in existence and be identifiable, to the use and enjoyment of the property and the amount of rent payable. Considering that the contract is for the use and enjoyment of the property (which is the substance of the contract), the contract will not be a lease if the parties intend that the lessee is to have the property permanently or deplete or consume it. The parties normally agree on the duration of the lease, this may vary; it may be a short period or an indefinite period terminable by giving notice. In the event that it is a long lease, usually described to be 10 years and more, they maybe a need to register the lease against the property with the Deeds Registry to be enforceable against third parties like buyers. The principle is that lease comes before sale. The lease may be renewal. This gives the tenant the option to renew it on its expiry. There may be formalities that are required for the renewal to be effective. So, it is important that the tenant must comply fully with the option clause. This may require giving a month’s notice before termination. This may be necessary to forewarn the landlord that the house will be vacant and he must look for another tenant or that you are going to continue staying in the house and a new contract must be drawn.
The parties usually agree on the amount for rent and maybe an escalation after the first anniversary of the lease. The parties may fix the rent amount or agree on a formula by which rent can be calculated. In other jurisdictions, such as the United Kingdom (UK), tenants pay council tax and the landlord must deposit a copy of the lease with the local council to enable the council to know from whom to collect tax.
To enable the tenant to take up occupancy of the house, the landlord must deliver free and undisturbed possession of the property to the tenant. If the property requires a right of passage through another’s property, the landlord must arrange and secure servitude in favour of his property. The property must also be delivered in a reasonable state of repair under the circumstances. If there is somebody else in occupancy of the rented property, the landlord may find himself/herself in a legal squabble, either being sued for specific performance or for breach of contract. It is therefore critical that the landlord should guarantee delivery of the use and occupation of the leased property at the time agreed upon.
Written by Batsho nthoi
http://www.gazettebw.com/index.php?option=com_content&view=article&id=6174:contract-of-lease&catid=21:columns&Itemid=2
This is a basic explanation on the requirement of lease of contract which I have spoken about earlier on. It basically tells what is expected of them when they do enter into contract, what the tenant and landlord's responsibility is in each case.
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