More from Vern Krishna in the National Post – Why we hate the tax collector.
Quite an interesting article highlighting the “tax collector” throughout history.
Some interesting highlights:
1. On taxation as persecution and the an acknowledgement of the role of the “exit tax“
Taxation has long been the instrument of persecution. In England, for example, Jews were forbidden from joining any of the artisan guilds and could not own land. Thus, confined to money lending and finance, they were taxed on their goods, chattels, debts, gifts, and through licences, fines and ransoms. The penalties for non-compliance with the tax laws were severe: imprisonment, property confiscation, seizing of women and children, gouging out eyes, extracting teeth and other cruelties. Indeed, Jews were considered such a valuable economic resource that they were even forbidden from emigrating for fear of undermining the tax base of the country.
2. The relationship between unjust taxation and the end of empires – “Obama”ites, Levins and Geithners take note!
The British, equally creative and shortsighted in their colonies, imposed a tax on salt [Salt Act] in India claiming a monopoly on all of its production and distribution. Tax collection was subcontracted to oppressive salt agents. On March 12, 1930, Mahatma Gandhi began his now famous 241-mile march to Dandi [on the west coast of India] to protest the tax on an essential ingredient of food. Thousands of his followers on the march were beaten, arrested and thrown in jail.
A year later the tax was reduced, but the damage was done. The nonviolent political struggle against the salt tax was a significant step on the road to Indian independence, which became the first step in the eventual dismantling of the British Empire.
(Didn’t the American Revolution have something to do with this too? I have suggested that all countries of the world emulate Gandhi’s peaceful resistance in relation to FATCA.)
3. Proof that what matters is the character of the government and not what is written into law – Get this one!
Thus, unlike Americans – who have their Taxpayer Bill of Rights codified in their Internal Revenue Code – Canadian taxpayers do not have equivalent legal protection.
Yes, there apparently really is an IRS Bill of Rights (at least on paper).
In any case, a very interesting article.
*Under the US Taxpayer Rights apparently you are denied the right to freely leave and return to your own country as described in the United Nations Declaration of Human Rights. You have to pay to leave, and if your income and/or assets are above a certain level you have to pay very dearly.
And if you leave and renounce your citizenship for tax reasons there is the possibility under the Reed Amendment that you may be blacklisted and never be permitted to visit the US again as long as you live.
Apparently this Amendment has never been applied, but like FBAR it is the law and remains as a real threat. FBAR reporting was mandaded by law back in 1970 but this obligation was never even mentioned in the information provided for either domestic or overseas tax filers until 2009, when suddenly it was resurrected and applied with a vengeance to US persons living abroad who had never been told of its existence by the IRS or anyone else.
The Taxpayer’s bill of rights was somewhat of a worthless document with respect to FBAR.
*Thanks for this, the history and perspective is quite interesting. I am especially grateful that I don’t have to worry about having my eyes gouged out. Yikes!
After all that has happened with regard to FBAR, FATCA, OVDI, et al, I am unable to relate to the depiction of the CRA as being the bad guy and almost amused at the idea that the US has a Taxpayer Bill of Rights. I don’t recall anyone suggesting that we try to deal with the expatriate issues via this way. Has anyone ever read this? Or investigated any possibilities?