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Dual-Monetary System in Ireland?

  • 18-10-2009 8:39pm
    #1
    MeatProduct
    Registered Users, Registered Users 2 Posts: 1,005 ✭✭✭


    I recently came across this court case in the USA.

    In summary it is about an employer paying his staff in gold based on the face value of the gold coins he was giving them. So per week he paid them a gold coin with the face value of $50 but that has a value of $806 in FRNs. This meant his staff received an annual salary with a face value of $2,600 which is below the taxable threshold. However in FRNs it has a value of $41,912 for which the IRS saw as taxable income.

    The case ended with zero guilty verdicts as it was shown that it was not illegal to pay staff on the face value of gold coins.

    So what I am asking here is is there a mechanism to pay employees in gold or some other commodity. Not as a means of evading tax but as a means of paying them in a commodity that has a fixed value?

    Thank you!

    Nick


Comments

  • #2
    silverharp
    Registered Users, Registered Users 2 Posts: 18,854 ✭✭✭✭silverharp


    I'm sure you can pay your employees in chickens , the point is that at that point in time they have a value in Euros. It makes no difference to the employee if he gets a gold coin or $1000. Most tax rules are based on value and have anti avoidence rules.

    A belief in gender identity involves a level of faith as there is nothing tangible to prove its existence which, as something divorced from the physical body, is similar to the idea of a soul. - Colette Colfer



  • #3
    thebman
    Closed Accounts Posts: 10,012 ✭✭✭✭thebman


    I think it matters to some employees what they are paid in, I don't want to get paid in chickens :P

    Imagine trying to use the automated checkouts in Tesco :(


  • #4
    MeatProduct
    Registered Users, Registered Users 2 Posts: 1,005 ✭✭✭MeatProduct


    silverharp wrote: »
    I'm sure you can pay your employees in chickens , the point is that at that point in time they have a value in Euros. It makes no difference to the employee if he gets a gold coin or $1000. Most tax rules are based on value and have anti avoidence rules.
    Well that's the thing Silverharp, in the US the gold coin has two values, the face value and it's FDR value.

    What I'm asking is if there is such a valuing of gold in the Irish economy?

    Interesting that it is possible to pay staff in whatever way I see fit. So, following your example, there is presumably a fixed value on what a chicken is worth that does not change over time?

    Nick


  • #5
    silverharp
    Registered Users, Registered Users 2 Posts: 18,854 ✭✭✭✭silverharp


    MeatProduct wrote: »
    Well that's the thing Silverharp, in the US the gold coin has two values, the face value and it's FDR value.

    What I'm asking is if there is such a valuing of gold in the Irish economy?

    Interesting that it is possible to pay staff in whatever way I see fit. So, following your example, there is presumably a fixed value on what a chicken is worth that does not change over time?

    Nick

    As far as I know the Fed and IMF etc value their gold at a much lower official value, but when it comes to transactions the market price is used. In ireland only the market price would be used, there is no other value.
    As for fixed value , the concept cant really exist , once you relate one item of value to another you always have a ratio that changes over time. If you could manage to get paid in gold or anything else , it would still buy a different basket of good in the supermarket.
    Or say for example there was a gold standard the purchasing power of the money would generally go up over time as the natural price movement of goods is down due to productivity improvements. In such a situation as one would have confidence in the money one would be happy to save without worrying about interest rates etc. and possibly leave the savings outside the banking system, so value would be maintained and then some.

    A belief in gender identity involves a level of faith as there is nothing tangible to prove its existence which, as something divorced from the physical body, is similar to the idea of a soul. - Colette Colfer



  • #6
    MeatProduct
    Registered Users, Registered Users 2 Posts: 1,005 ✭✭✭MeatProduct


    silverharp wrote: »
    As far as I know the Fed and IMF etc value their gold at a much lower official value, but when it comes to transactions the market price is used. In ireland only the market price would be used, there is no other value.
    As for fixed value , the concept cant really exist , once you relate one item of value to another you always have a ratio that changes over time. If you could manage to get paid in gold or anything else , it would still buy a different basket of good in the supermarket.
    Or say for example there was a gold standard the purchasing power of the money would generally go up over time as the natural price movement of goods is down due to productivity improvements. In such a situation as one would have confidence in the money one would be happy to save without worrying about interest rates etc. and possibly leave the savings outside the banking system, so value would be maintained and then some.
    Thank you for all that SilverHarp, cleared things up for me nicely.

    Appreciated,
    Nick


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