Learning from wise, rich, great Shri L.N.Mittal- forgo penny to gain millions... billions....

[CA DEV KUMAR KOTHARI]

Advertisement and publicity adds to goodwill:

We know that any advertisement and publicity is generally designed to add to goodwill. Some exceptions can be in case of adverse publicity. The efficacy of advertisement and publicity depends on its design, mode, media, and depth and breadth in which it spreads.

News items which have positive value adds highly to goodwill and reputation.

Proverb:

Public at large refers popular proverb “penny wise pound foolish”. However, recently I learn “Forgo or pay penny and gains millions , billions, ... ”.

Really wise Indian richest LNM:

LNM forgoes discount of few hundred pounds in his council tax on his property (property tax like municipal tax in Indian cities) and gain publicity worth at least few millions of pound with news only in one news paper- The Financial Express (FE) (the source used herein) and The Sunday Times, the source of FE.

This news is likely to spread in other news papers, and e-media via discussion forums, blogs, twitter, face book, articles in magazines and e-magazines etc. then the value of publicity which LNM can gain can see geometrical progression and may reach billions of pound.

So we can say "penny paid for billions gains",  or “forgo penny to gain billions” and new formulae can be called "pay penny to gain billions" and “forgo penny to gain billions” – these are the formulae wise businessman apply to become richer day by day.

About discount forgone by LNM:

In London a discount on property tax (like municipal tax) is allowed in range of 10-50% for second house or long unused residential houses. It seems that LNM was also entitled for such discounts. Though the amount of discount forgone by LNM is not ascertainable, yet we can guess the same in range of few hundred pounds or at best few thousand pounds considering that the Sultan of Brunei enjoyed a second home discount of 10 per cent on his mansion in 2012, reducing his annual bill from 2,158 pounds to 1,942 pounds that is saving of 216 Pounds.

Best Investment:

Perhaps the discount on property tax, forgone by LNM is his best investment or may be many such investments in past. That is why he is Britain’s richest man – hats off to LNM.

The news report is analyzed below with highlights:

Source:

http://www.financialexpress.com/news/mittal-pays-full-property-tax-in-uk-not-availing-discounts/1055339/0

Mittal pays full property tax in UK not availing discounts

London:Britain's richest man L N Mittal is among the few billionaires based here not to seek benefits on his property tax for his palatial house even as wealthy homeowners like the Sultan of Brunei avail discounts on their tax bills.

The 62 year-old NRI steel magnate, with a personal wealth estimated at around 12.7 billion pounds, stood out from a list of other residents of the posh Kensington Palace Gardens in the heart of London by paying the council tax on his property in full.

According to The Sunday Times, many of his neighbours are avoiding complete payment by using discounts on their council tax bills.

Some of the world's richest, who are least likely to need help with their bills, are receiving council tax discounts of 216 pounds on properties worth tens of millions of pounds.

Mittal had acquired the property in what is dubbed as billionaires' row from Formula One boss Bernie Ecclestone for 57-million pounds back in 2004, when it was believed to be the most expensive home in Britain.

The house is known for its extravagance with 12 bedrooms, an indoor pool, Turkish baths and parking for 20 cars.

The newspaper report claims that one in five such homes on the street qualified for a tax discount last year as "second homes" or long-term empty properties.

Figures show that the Sultan of Brunei enjoyed a second home discount of 10 per cent on his mansion in 2012, reducing his annual bill from 2,158 pounds to 1,942 pounds.

The Saudi royal family's home, opposite the Sultan's house on the same street, was among those which received a similar discount.

The revelation that some of the UK's richest homeowners qualify for council tax discounts will add to growing calls for the system to be overhauled, especially in view of the harsh economic conditions faced by the country.

From April, councils in Britain will have the power to remove the discount, which ranged between 10 and 50 per cent depending on the local authority.

The expected savings will go towards helping those on low income with their council tax bills.