Global financial markets recently had seen significant hyperventilation by Federal Reserve policy makers as to U.S. inflation having to rise to a certain target-rate level, before the Fed could reverse its post-2008 banking-panic Quantitative Easing (QE) programs. predicament.
The undersigned has almost 40 years of experience as a chartered global tax advisor, professor of international taxation, head of global tax, and he has unfortunately experienced ‘reverse tax evasion’ throughout the world over several decades, where taxpayers have unfairly been ordered to pay vast amounts of incorrect tax.
There are many reasons why taxpayers are subjected to ‘reverse tax evasion’:
a) A country’s tax authorities might want to impose as much tax as possible at any cost, even though they do not have the authority to do so, and consequently demand that taxpayers should pay unfair and incorrect taxes.
b) The attitude of the tax authorities might be that taxpayers are scoundrels who will avoid paying tax at every opportunity. Such negative attitudes quickly result in taxpayers being subjected to ‘reverse tax evasion.’
c) The authorities draw up ingenious rules so that taxpayers are deprived of their rights and thus have to pay more tax.
d) The tax authorities fail to comply with procedures and guidelines.
e) Decisions are not quality secured.
f) Tax authorities deliberately ignore the EU Agreement which gives taxpayers certain rights.
g) The international tax legislation in particular, are extremely complicated, and not all tax officers possess the expertise necessary for working on such cases.
h) The main rule is that someone is innocent until proven otherwise, but taxpayers are often guilty until proven otherwise.
i) If the tax authorities have doubts about whether a transaction should be subject to tax, they may claim that it is indeed subject to tax and leave it up to the taxpayer to provide proof or hire an adviser to investigate the matter at the expense of the taxpayer.
j) The tax authorities make threats, e.g.: ”if you do not accept our adjustments we will make problems for your company for the next 5 years” - something which should obviously be regarded as constituting serious, illegal abuse of power.
k) Appeals cases in which the tax authorities refuse to admit that they have made a mistake are a matter of prestige.
l) The legislative authorities change the facts which relate to being able to engage in ‘reverse tax evasion.’
Taxpayers should adopt a critical attitude towards decisions and tax audits, made by the tax authorities, since the main aim of the tax authorities does not appear to involve safeguarding the taxpayers’ rights.
It is hard to say how much tax has been collected by the tax authorities on a global scale as a result of ‘reverse tax evasion,’ but we are talking about significant figures.
The question is: why haven’t the OCED, EU, UN, G20 and national authorities placed focus on ‘reverse tax evasion’? We need to focus far more on such dubious practices - and these need to be stopped. EG