Question about government debt vs private debt

[ChrisPontius]

I've recently moved from one EU country to another because of a job opportunity. The one I've moved to is not in OECD. I'm supposed to pay 9k EUR to my government because of crypto profits now in November, but I really don't want to pay at all. I was questioning if it would be better to take a bank or credit loan and pay the 9k EUR with that, so I keep my hard-earned money fair and square, or is it better to have government debt? I do know that after five years government debt is prescribed and also the interest rate is way lower. Although, I don't know the downsides of having government debt.

 

[sonato]

or is it better to have government debt?

if you ever want to come back to that country and you have that debt, it is bad business. If you never want to come back, just give a s**t and take the government debt!

 

[ChrisPontius]

if you ever want to come back to that country and you have that debt, it is bad business. If you never want to come back, just give a **** and take the government debt!

I have no plans to come back. But can you elaborate a bit further?

 

[Martin Everson]

You should always pay whats owed especially if you have the means to. However if your mind is set on doing a deliberate action of taking out a loan with no intention to pay it back then you better not come back any time soon. It's totally wrong and in fact can in some countries be considered the obtaining of a fraudulent loan.

P.S It wouldn't be my choice to do such a thing but each to their own I guess.

 

[Sols]

Owing money to the government is not a good position to be in. Most jurisdictions have ways for debt periods to be extended if the creditor continues to take action to claim the debt. There are limits even on that the five year limit mentioned may not be the real end of it.

If they get creative, the tax debt can be construed as tax evasion and money laundering. That's extremely unlikely for such a small debt, though.

I'd just pay the 9,000 and take it as a lesson for the future.

Some countries put restrictions on renewing passports in case of tax debts. I think US is the only major country to do this. AFAIK, no EU country is currently doing it.At least not yet.

 

[ChrisPontius]

You should always pay whats owed especially if you have the means to. However if your mind is set on doing a deliberate action of taking out a loan with no intention to pay it back then you better not come back any time soon. It's totally wrong and in fact can in some countries be considered the obtaining of a fraudulent loan.

P.S It wouldn't be my choice to do such a thing but each to their own I guess.

Pay what's "owed" This is theft, pure and simple. I have no intentions to take out a bigger loan than the 9k USD if it is better to have private debt than tax or government debt.

Owing money to the government is not a good position to be in. Most jurisdictions have ways for debt periods to be extended if the creditor continues to take action to claim the debt. There are limits even on that the five year limit mentioned may not be the real end of it.

If they get creative, the tax debt can be construed as tax evasion and money laundering. That's extremely unlikely for such a small debt, though.

I'd just pay the 9,000 and take it as a lesson for the future.

Some countries put restrictions on renewing passports in case of tax debts. I think US is the only major country to do this. AFAIK, no EU country is currently doing it.At least not yet.

So you would say it's better to have a private debt or debt to the bank?

 

[Sols]

So you would say it's better to have a private debt or debt to the bank?

Tax debt and loan debts are different things. It's hard to compare them.

It also depends on who the lender is. Some people are worse than governments to owe money to.

As Martin mentioned, if you take out a loan with no intention of paying it back, you're just substituting one crime for another. If the lender is an international bank, they might come after you wherever you are for as long as they legally can. It costs them next to nothing.