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Friday, April 20, 2012

Final take on PI tax increase - CPP gave us malarkey.

This has been sitting in my drafts folder for over a week and it's time I got it finished. At the bottom (no, I won't make you scroll through it if you don't want to) are the 1st quarter financials for Mabrick Mining and Manufacturing.

In last quarter's financial post, the higher PI taxes due to the Crucible changes were just kicking in. It was hard to get an idea of their overall impact on profit margin.  This quarter I think I can. However, I had to run numbers for the three months pre-Crucible for a proper comparison.

For the faux-quarter September 4, 2011 (first day I still have data) through November 28, 2011, my Planetary Import and Export taxes combined were 52,881,015.79 ISK. Compare that with the combined 323,797,494.25 ISK I paid this last quarter and I think that sums up the impact fairly well. That's more than a six fold increase - over 600%.

Back in December, I stated that CCP's portrayal of a simple doubling of taxes was misleading in the extreme. I predicted that it would be more like a six fold increase. I was right. To be fair, the price of Wetware Mainframes, my PI product, did go up over 80% for a few months. Now prices are down again to a more normal 1.1 to 1.2 million ISK apiece. The higher prices account for some of the percentages in that increase since the tax is now value based. However, backing the price increase out does not drop it down to a mere doubling. That was pure malarkey. Bottom line though, I still made plenty of ISK.

Income & Expenditure Report
from Sunday, January 01, 2012 to Saturday, March 31, 2012


INCOME
Insurance
1,191,300.00
Market Transaction
1,281,037,972.48
Agent Mission Collateral Refunded
100,030.85
Agent Mission Reward
3,586,000.00
Agent Mission Time Bonus Reward
4,635,400.00
Market Escrow
36,847,817.59
Bounty Prizes
30,535,568.00
Corporate Reward Payout
250,000.00
INCOME TOTAL
1,358,184,088.92


EXPENDITURE
Player Donation
-1,000,000.00
Repair Bill
-3,893,446.00
Insurance
-20,827,487.40
Agent Mission Collateral Paid
-100,030.85
CSPA
-5,900.00
Market Escrow
-541,189,548.84
Brokers Fee
-9,791,385.29
Transaction Tax
-6,405,189.94
Manufacturing
-28,227.18
Researching Technology
-842,010.66
Researching Material Productivity
-9,207,627.02
Copying
-107,055.30
Contract Brokers Fee
-20,000.00
Bounty Prize Corporation Tax
-1,513,097.15
Agent Mission Reward Corporation Tax
-160,750.00
Agent Mission Time Bonus Reward Corporation Tax
-208,550.00
Planetary Import Tax
-72,964,967.25
Planetary Export Tax
-250,832,527.00
Planetary Construction
-23,745,000.00
EXPENDITURE TOTAL
-942,842,799.88


CASH FLOW
Income Total
1,358,184,088.92
Expenditure Total
-942,842,799.88
NET CASH INFLOW
415,341,289.04


OWNER MOVEMENTS
Start Balance
End Balance
Movement
Mabrick
2,833,374,944.02
3,248,716,233.07
415,341,289.05
TOTAL MOVEMENT
415,341,289.05

Fly careful.

3 comments:

  1. You keep quite a high balance. I generally prefer to have much less liquid isk on hand. I generally hope that things like Guidance Systems are going to inflate faster than the isk.

    Also your biggest item of expenditure is Market Escrow. I don't know whether that should be an expenditure as you get it back don't you, either when the order eventually expires or as value when the order is filled.

    ReplyDelete
    Replies
    1. I agree, I have far to much cash on hand. I actually mentioned in last December's report that I needed to get more of it working for me. I've done that a little this quarter where the opportunities for profit are looking quite good. Volatility almost always means a sharp investor can score really good margins. My problem is I haven't has the time to be a sharp investor. I quite like what Warp to Zero has been doing with his 30-day market challenge (http://warpto0.blogspot.com/p/30-day-market-challenge.html) and am paying close attention to it.

      As for the escrow, all I can say is it's a canned report. It is money I've paid to place buy orders. I will get it back or make the purchase. I look at it like inventory of the shelf. In any business, unsold inventory is a liability, not an asset. The company spent hard cash to purchase it. The longer it sits on the shelf the less valuable it becomes. That money might have been better used elsewhere.

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  2. Had made a comment post a few days ago, apparently a hamster must have eaten it somewhere. However though it was pretty cool you take the time to put together a Summary somewhat of economic activity. What had gotten my attention in your report the first time when i commented and the hamster apparently ate it was how much you pay in PI which was allot and so figured you had to do allot of PI to pay that much in taxes.

    I haven't done all that much PI in last few weeks/months as normally do. So i went back to check just how much PI Taxes i paid on main character. Total was 16262750.00 on one character of which I have 3 that actually does PI on at least 5 planets each. Since my main does most PI that can be no more than X3 that for Taxes. And only one character ever does Importing to Factory Planet of which haven't done any P4 making in months so no taxes there. But that's allot of taxes there you paid.

    The only thing i happen to notice while check the Wallet Journal doing the search was there was no actual reference type search for checking how much non Brokerage Taxes one pays to the market on transaction to the SCC (Secure Commerce Commission). I thought that was odd, I sure would like to know exactly how much Taxes I've paid over last few weeks to the SCC out of curiosity.

    ReplyDelete

Be civil, be responsible and most of all be kind. I will not tolerate poor form. There will be no James Hooks here. We are all better than that.