Tax Evasion

How prevalent is tax evasion now? The changes in the budget weigh heavily on the PAYE sector. Certainly the PAYE sector cannot avoid the increased levies. How common is underreporting of income in the non PAYE sector?
There’s a real fairness issue here.

laffer curve+ireland=evasion

The PAYE sector can evade taxes, its more commonly called under the counter work. It can also include non disclosed benefits in kind etc.

The suggestion that self employed people are all on the take is unfair. There are more opportunities for them to evade taxes, but there are also a lot more opportunities to get caught, so most of them don’t evade taxes. Those that do, tend to be audited and/or investigated by the Criminal Assets Bureau.

Some in Finance don’t buy laffer curves. They are hardcore fundamentalist exponentialists :imp:

It’s turns out yer wan who was on the RTE News because she told Lenihan on Kenny’s Radio show that she wasn’t going to pay taxes anymore because she was under so much stress is a teacher on 63k a year. :laughing:

I think CAB confiscate the proceeds of crime from known criminals. The Revenue are the ones concerned with investigating tax evasion.

IIRC from a lecture (quite a while ago) I was at about 1500 to 2000 new tax cases are brought into the tax net every year. Usually by neighbours telling on them.

If you look at the defaulters list, there would seem to be much better compliance in Dublin.

I think the revenue are actually pretty good at collection. But the extect of the black economy? Must be fugging massive with the smuggling and the drugs and stuff never mind cash businesses.

Milton Freeman invented P A Y E in 1940.

Lets be fair and dismantle it.

Let the government do its own work ?

Hardly worthy of a lol smilie - if you heard her you’d know she was extremely distressed and made it clear from the outset that she was a teacher on 63k. It would have been quite clear to you that her stress - whether you think it’s justified or not, was not put on.

She also made it clear that she’d foolishly bought into the bubble, remortgaged her house to buy a property (in Bulgaria I think) and is now financially crucified.

Surely the measure of someone’s financial ‘stress’ is not their income but their ability to meet their outgoings and the impact that the budget and other cuts will have on them.

She also pointed out that at the root of her terror was the fact that she didn’t know where it was going to stop, that the takings from her salary will increase next year and the year after and already she’s not sleeping at night.

Not a bit funny at all, actually.

Who the hell is “Milton Freeman”? Did you mean Milton Friedman?

He didnt invent income tax either.

No, but her stress is due to her own foolish actions, so she should blame no-one but herself. And she should pay her taxes like the rest of us.

I think I made it quite clear that she accepts her responsibility.

Her tax is deducted at source - there’s no question of her not paying it if she’s a teacher. The comment was clearly made out of frustration, fear and upset - not with any realistic intention of following through.

I’ll be the first person to beat the ‘personal responsibility’ drum. It hasn’t been heard nearly enough. However, as the extent of the government’s wilful and wanton mishandling of the country’s finances becomes ever clearer, despite having their fingers in their ears as if not hearing the country crumble means it’s not happening, it’s not fair to say that she or anyone in trouble has no-one else to blame.

This is more Tax avoidance than evasion.

In the UK parents are gifting their children their inheritance now to avoid hefty CGT and inheritance tax. Twas in the FT .
Equities have fallen so much many parents have taken the decision to pass on their holding to their children, as they have taken a loss in the last 18 months, it limits the CGT and inheritance tax to be paid.
Obviuosly the expectation is that the holdings will grow in the coming years.

I assume the same could happen in Ireland. Another unexpected blip in the end of year exchequer figures, sure those things are always wrong.

Any pinsters out there , nows they time to by the old one and the old fella some flowers and a new set of golf balls and then ask them about whats in that will… nows the time to pass it on.
I say that in jest, never ever let yourself think that way.

Dear Euribore, I said P A Y E not income tax.

Why should employers endure employees annoyance.

As before 1940, let the government collect its own taxes.

Let entrepreneurs produce wealth, and not have to administer with expense, tax collection.

de cult of de entreprenuer…

so let me get this straight…
you want the government to collect and calculate it’s own tax so that entrepreneurs don’t

so who’s going to do these calculations? should the government hire more people to do them?
should they hire more people to chase non compliant people in a self administered system?

PAYE works pretty well
fair play to milton friedman

Obviously with PAYE tax evasion is somewhat more difficult than it is for everyone else.

So abolishing PAYE is on the libertarian wishlist because if there isn’t a juicy wedge of of people who cannot fiddle their taxes to squeeze, the government will find that increases in tax just increase evasion and won’t try to do it.

There’s many a true word spoken in jest BoB - the family that pays together stays together :smiley: