Saturday, March 1, 2008

Fear to scare us into submission

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Has anyone noticed that the tax authorities are playing a psychological war against tax evaders and its based on guilt, fear and now even crime. The last story discusses how tax authorities have resorted to buying stolen information from private citizens prepared to expose arrangements that protect the financial interests of people that dont believe in tax.

There are a number of elements to this strategy:
1. Guilt: Continue to propagate the myth that tax evasion is illegal or immoral to make people feel guilty for acting in their own best interested, and those of their family.
2. Fear: Continue to announce initiatives that make people feel like the tax office is on top of things. The reality is they are actually a pathetic group of cowards, but they are only emboldened by cowardice and unthinking character in the general populous, starting with individuals and business that relies on government hand-outs.
3. Crime: Well the previous example highlights how desperate tax authorities have become. Germany is of course one of those EU countries with very high tax rates, and you can imagine that a great many of them are not happy paying so much, if any.

So what of the strategies they use:
1. Polite: The tax office are actually very friendly people. Research has no doubt told them that people are more likely to pay income tax if you solicit funds with a happy disposition. They are more inclined to 'backdown'.
2. Divide & conqueror: The tax authorities like to perpetuate the idea that they are targeting certain sectors of the economy. They find a tax evasion scheme and they make that industry or aspect of the tax code the basis for 'added vigilance'. The intent is to scare you into submission.
3. Target high profile examples: There is a tendency to take high profile people and target them for tax auditing. No doubt they made a slip. The reality is they will pay alot of penalties, they might even be disallowed from making any public comments as part of their 'out of court' settlements. This is just another example of the divide & rule principle used by dictators so well. They dont care that they wreak people's lives. They want people to see that everyone is under threat.

Examples are Steve Vizard, the Australian comic, the high-flying Australian stockbroker Rene Rivkin and Paul Hogan, another comic cum director.
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Andrew Sheldon www.sheldonthinks.com

2 comments:

Anonymous said...

thing that I think is really funny is that at school (australian) we were never taught that we had to pay tax, nor were we ever taught how to. Yet when we leave school and get a job we are somehow majically meant to know how the taxation system works.

And if you choose to learn how to pay their taxes you have to learn it at your own time and expense.
Its like having to take an expensive course for the priveledge of learning how to give your money to another.

Whats more even though you were never taught how to pay tax you can still be jailed for not doing so.

imagine tomorrow that the government decided that not picking up your free newpaper on your driveway was a crime but chose not to tell anyone that except for those that have access to a state libraies legal books. we would all be slowing getting put in jail and only after we had all seen someone jailed would we know that it was a crime.

If you want people to pay tax then teach them how to do it. But I suppose if people actually understood the taxation system then everyone would know how to minimise what they pay. and the government wouldnt be happy with that.

I say calculate how much tax you would have been required to pay then donate that tax dirrectly to the institutions that you would require service from (like your hospital, school etc) then deduct that donation from your tax bill. then you can cut out the middle man and directly benifit from your own money.

money generated from an area should stay in that area. its stupid that someone who lives in a small country town may be contributing to a highway in an area that they will never go to. and if those people work hard why should they subsidise others

Andrew Sheldon said...

Thanks Funky. Its a good point. I guess if they had courses now, I wouldn't attend. I dont want to know how to be a better slave to a worse system.

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