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Solving Tax Evasion

Posted: Thu Jan 21, 2010 11:40 pm
by Bill3000
I've noticed that it's trivially easy to evade taxes in the bank system. If you're going to get taxed soon, simply move one's money to an account in a country where you're not going to get taxed. This should be rectified, preferably by a pan-nation treaty to avoid this, to enforce taxes of citizens if they move their income to another nation, and minimize tax shelters.

Re: Solving Tax Evasion

Posted: Fri Jan 22, 2010 12:20 am
by Andreas the Wise
It is solved, largely. It's solved by not taxing (or, if you are taxing, taxing all your citizens per head, rather than as a proportion of their bank income in the account you can see).

Re: Solving Tax Evasion

Posted: Fri Jan 22, 2010 12:29 am
by Bill3000
...that's hardly a fix, more like conceding defeat. :D

Re: Solving Tax Evasion

Posted: Fri Jan 22, 2010 1:25 am
by Harvey Steffke
To be fair, it's the best option. It's not like our economy is really strong enough to need being taxed directly.

But if you or any other concerned party would like to write up a treaty that somehow prevents this, of course we would be happy to add it to the repository.

Re: Solving Tax Evasion

Posted: Fri Jan 22, 2010 5:24 am
by Malliki Tosha
Any jurisdiction could also make it illegal to transfer money out of country to evade taxes. I don't see a problem at the moment tho, so there is no need for a fix.

Re: Solving Tax Evasion

Posted: Fri Jan 22, 2010 7:53 am
by Kaiser Leto III
Andreas the Wise wrote:It is solved, largely. It's solved by not taxing (or, if you are taxing, taxing all your citizens per head, rather than as a proportion of their bank income in the account you can see).
But Batavia has taxes (the State doesn't have much money, most is circulating).

Re: Solving Tax Evasion

Posted: Fri Jan 22, 2010 8:32 am
by Maximilian
Yep, Batavia has taxes. Gustaaf Vermeylen is in charge of making up a system that covers the expenses and is compatible with the SCUE. He's going to have a hard time doing so, since the Batavian system is somewhat complicated. We are however trying to make it less complicated :)

Re: Solving Tax Evasion

Posted: Fri Jan 22, 2010 1:50 pm
by Andreas the Wise
It's the difference between auto taxing and citizens actually paying their taxes. If you're happy for citizens to pay their taxes, head taxes are a very easy solution.