- Joined
- Dec 27, 2017
I don't disagree that Phil stretches the truth (to an extent that is impossible to prove without paperwork) however the difficulty in casting judgement doesn't come from wanting to stay neutral but rather the way in which the laws are written. There's been a lot of speculation about stuff like "he's an entertainer, so he should pay the entertainer tax" which is incorrect (disclaimer: not a tax specialist)
The audit situation probably isn't similar to situations in which someone has underpaid their taxes, where a figure would be easy to arrive at. In this situation a "business" which never existed has come to the attention of the taxman 4 years later, so there probably are not immediate figures available.
The tax codes are written with the intention of taxing revenue/sales generated from businesses that are reliant on Washington. So even if you're a company operating in another US state, you still have to pay the Washington sales tax for customers originating from there.
Depending on how you interpret what Phil does, his business is not reliant on Washington as a place of business because his "customers" are largely not from Washington. The only way to get more clarification is for the tax codes to be updated to include what is applicable to people that generate income from YouTube and Twitch, by which time both websites will probably be ancient relics of the internet.
If you think anyone has a clear answer about any of this then take a look at this thread:
https://sellercentral.amazon.com/forums/t/sales-tax-approach-for-large-fba-sellers/290040/12
If you're any of those people, even out of state, Washington's taxman can theoretically knock on your door after several years and say you owe money.
If you're a normal business or you actually sell physical products, then its very easy to get a clear picture of things. But this is not a physical goods business and the closest thing in the tax code (income via royalty payments) says that the taxes aren't applicable unless the royalties originate from being "Washington famous". Phil is not Washington famous therefore its extremely difficult to know what the fuck the taxman will make him pay.
(none of this changes Phil still choosing to live in a hugely oversized/overpriced property and his spending habits)
Okay I see your point, but just wanted to add a thing:
He has stated more than once that he made more than last year. So he's already calculated how much he made. The washington state taxes rely on the income generated in the state, meaning how much he earned while operating from washington.
You could argue him trying to turn in every little receipt to his tax attorney recently is him figuring out his federal taxes for last year, except the washington state taxes are not based on what you made, minus deductions. It's gross, not net.
It's the other way around, State wants the cut first, and you then take your write offs to the federal level. So he most definitely would have to have his state taxes already done for his federal to be calculated, and he just turned in "everything" on his "day off".