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Who are the most aggressive and least aggresive tax authorities?

- **Germany** - Even if you're a celebrity, if you play hide and seek with taxes here, you're on the spotlight (and not the glamorous kind).
Can agree on this one. Basically if they find you cheating, let's say over 1MM$, you can't avoid jail time. This is a bit insane, if you compare it to other crimes. Because for all other crimes, there is basically always the social aspect, like what is best for society. So for example if someone did 10MM$ revenue, paid 5MM$ taxes and somehow cheated for 1MM$ he basically can't avoid jail...On the other hand if someone rapes a girl, he might come without jail time.
 
This shocked me and at the same time depressed the fvck out of me! :oops:cry&¤
It indeed feels cynical how the severity of punishments for certain crimes has been determined, but if you look at citizens as assets/cattle of the mafia, then it suddenly starts to make more sense:
A raped girl can still pay taxes, so the authority doesn't consider it as such a big deal, compared to stealing from the authority, which is a more severe matter from that angle.

Even historically or in certain cultures, raping has not been regarded so much as a crime against the person who was raped.
In many cultures raping a girl is more of a crime against the father/family of the girl rather than against the girl herself since, after rape, the girl is rendered unfit for marriage and remains a liability to the family, and its a violation of honour.

I feel empathy for the rape victims. The system is not fair.
 
I've checked a lot of countries...

-Dubai, it's a city in the middle of the desert, few months out of the year it's extremely hot, it's expensive. No thanks, and it's quite fake for my taste.
-Cyprus, Malta, small islands, no thanks.
-South of Italy, just as bad as Spain, and too touristic. Plus Expensive!
-Thailand, too much of a culture change, far away, and the new Elite Visas are too expensive .
-There are other places that don't fit my criteria, not worth mentioning (Costa Rica, Belize, Uruguay, Paraguay, Caribbean islands, Eastern European countries...)

So I'll be living between Panama (territorial tax system) and Mexico, both close to the US, cheap, great quality of life, more freedom, not much of a culture change (speaking Spanish should make life easier,) great flight connections, good schools...
Tequila here I come!

As Martin Luther King famously said...

“Free at last, free at last. Thank God almighty we are free at last.”
Lol Martin Everson is better than King guy. @Martin Everson said security is more valuable than freedom
 
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So for example if someone did 10MM$ revenue, paid 5MM$ taxes and somehow cheated for 1MM$ he basically can't avoid jail...On the other hand if someone rapes a girl, he might come without jail time.
It's the way our society is structured in many European countries, at least, where murder, rapes, and violence against other people are not considered as severe crimes as, for example, stealing or cheating taxes for 1 million euros. As incredible as it sounds, money is valued more than human life, which puts the meaning of the phrase - money doesn't make you happy - in a completely different light. It might be true that money doesn't bring happiness, but you survive if you have it.
 
It indeed feels cynical how the severity of punishments for certain crimes has been determined, but if you look at citizens as assets/cattle of the mafia, then it suddenly starts to make more sense:
A raped girl can still pay taxes, so the authority doesn't consider it as such a big deal, compared to stealing from the authority, which is a more severe matter from that angle.
To be honest, I think it just doesn't make sense, how the German are handling this. If I'm paying over 1MM$ every year and once got into dispute maybe even not intentional, getting jail time is just crazy. Would leave the country and never come back. Also this would prevent the person producing more revenue. I think the government should treat its best costumers, as good as possible. Like I called them and politely asked to prioritize my tax declaration, because the amounts were high and the uncertainty - they basically answered f*ck off. If you look to Singapore, I think the mindset is completely different - at least that is what people told me.
 
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To be honest, I think it just doesn't make sense, how the German are handling this. If I'm paying over 1MM$ every year and once got into dispute maybe even not intentional, getting jail time is just crazy. Would leave the country and never come back. Also this would prevent the person producing more revenue. I think the government should treat its best costumers, as good as possible. Like I called them and politely asked to prioritize my tax declaration, because the amounts were high and the uncertainty - they basically answered f*ck off. If you look to Singapore, I think the mindset is completely different - at least that is what people told me.
That's not too bad.

In Bulgaria, anyone who fails to declare or pay taxes in excess of 3000 BGN (€ 1534) is punished with imprisonment from one to six years and a fine of up to two thousand BGN. When the tax obligations are more than 12000 BGN (€ 6135), the penalty is imprisonment from three to eight years and partial or full confiscation of the property of the perpetrator.

Depending on the size of your operations, it's not overly difficult to end up like this:

Indeed a different mindset :)
 
In Romania,

if you are in their system even if you do not work, the tax agent will estimate how much you earned and try to bill you ... yeah ... sometimes you work, but you don't want to force yourself (taxi driver, etc.) and they will compare your income to others who work full time, and tax your accordingly .
It often happens that someone worked as a taxi driver, then he quit his job, immediately the following year the state calculated how much tax he had to pay. even if he is not working ... . If you go to close a Sole Propeship or LLC, the state will ask you why, how much money will you live on... and if you plan to steal the state and that's why you want to work without a company...

they are also well know to like to come back 5 years later in accounting, and tell you that you don't have to renovate your store because it's rented and it was the job of someone else, or to say that you also use the company car personally and that you should to deduct only 50%. change a window? why didn't you make 50/50 with the one you rented the building from.

then we have our girls caught for earning a certain amount of money from adult video chat. If a girl did it only once in her life... like 3 years ago The state will "estimate" them how much they earned 4 years ago, and 5 years ago, and 1.2 years ago ... even if they did video chat only 3 years ago.
Do you have a bank account elsewhere, like in the UK where you work to change windows?, you will be harassed in Romania, they will call you like crazy to lie to you to alert the bank there that you have made income that you have not paid. They will ask you for bank account statements. The most stupid thing you can do as a Romanian is to open a bank account with the Romanian certificate when you go to Italy, UK, etc., you have to get a resident card and open it there.

all this time others steal from the state without problems. the vast majority of millionaires in Romania did business with the state. they bought a $1000 a piece of land on which a highway was to be built, and the state compensated them with 20 million euros for that land. forests, parks were stolen, with false documents of retrocession. it was said that in the 1800s the land belonged to a nobleman X, and Y's successor sold you the debt rights. obviously, the followers had no idea about it.
sometimes they get compensations for lands that are not even theirs.

Did you earn 50,000 euros last year for selling bitcoin or some forex positions ? wait ...and see how next year they will estimate that you won all 50,000, or 55,000 :))) if you said NO, they will ask you how you afforded to put food on table...

Do you buy goods from China on aliiexpress to sell them with a profit of 30-50% on olx.ro? They will come and say that they don't recognize your invoices from China and they will estimate the profit at the value of the items sold. As if you could manufacture a laptop at home for free, to be taxed at 16% of the price.....also a nice VAT of 19%
 
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In Romania,

if you are in their system even if you do not work, the tax agent will estimate how much you earned and try to bill you ... yeah ... sometimes you work, but you don't want to force yourself (taxi driver, etc.) and they will compare your income to others who work full time, and tax your accordingly .
It often happens that someone worked as a taxi driver, then he quit his job, immediately the following year the state calculated how much tax he had to pay. even if he is not working ... . If you go to close a Sole Propeship or LLC, the state will ask you why, how much money will you live on... and if you plan to steal the state and that's why you want to work without a company...

they are also well know to like to come back 5 years later in accounting, and tell you that you don't have to renovate your store because it's rented and it was the job of someone else, or to say that you also use the company car personally and that you should to deduct only 50%. change a window? why didn't you make 50/50 with the one you rented the building from.

then we have our girls caught for earning a certain amount of money from adult video chat. If a girl did it only once in her life... like 3 years ago The state will "estimate" them how much they earned 4 years ago, and 5 years ago, and 1.2 years ago ... even if they did video chat only 3 years ago.
Do you have a bank account elsewhere, like in the UK where you work to change windows?, you will be harassed in Romania, they will call you like crazy to lie to you to alert the bank there that you have made income that you have not paid. They will ask you for bank account statements. The most stupid thing you can do as a Romanian is to open a bank account with the Romanian certificate when you go to Italy, UK, etc., you have to get a resident card and open it there.

all this time others steal from the state without problems. the vast majority of millionaires in Romania did business with the state. they bought a $1000 a piece of land on which a highway was to be built, and the state compensated them with 20 million euros for that land. forests, parks were stolen, with false documents of retrocession. it was said that in the 1800s the land belonged to a nobleman X, and Y's successor sold you the debt rights. obviously, the followers had no idea about it.
sometimes they get compensations for lands that are not even theirs.

Did you earn 50,000 euros last year for selling bitcoin or some forex positions ? wait ...and see how next year they will estimate that you won all 50,000, or 55,000 :))) if you said NO, they will ask you how you afforded to put food on table...

Do you buy goods from China on aliiexpress to sell them with a profit of 30-50% on olx.ro? They will come and say that they don't recognize your invoices from China and they will estimate the profit at the value of the items sold. As if you could manufacture a laptop at home for free, to be taxed at 16% of the price.....also a nice VAT of 19%
Cool story.
What's your opinion on the micro company regime in Romania.

It seems not so bad to pay 3% on turnover and 8% WHT with certain high margin business models.

Or better yet set up a holding in e.g., Estonia and get residency there so overall tax will be 3% of turnover.
 
That's not too bad.

In Bulgaria, anyone who fails to declare or pay taxes in excess of 3000 BGN (€ 1534) is punished with imprisonment from one to six years and a fine of up to two thousand BGN. When the tax obligations are more than 12000 BGN (€ 6135), the penalty is imprisonment from three to eight years and partial or full confiscation of the property of the perpetrator.

Depending on the size of your operations, it's not overly difficult to end up like this:

Indeed a different mindset :)
Now I know for sure that I should never live in Bulgaria, they are not really wise there! It is probably also the law that if you rape a girl or kill a man, you get a medal from the authorities and great praise for the tremendous effort.
 
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Cool story.
What's your opinion on the micro company regime in Romania.

It seems not so bad to pay 3% on turnover and 8% WHT with certain high margin business models.

Or better yet set up a holding in e.g., Estonia and get residency there so overall tax will be 3% of turnover.

it was 1% for the company and 5% for dividends, they rise the tax now. also there is a limit. Max turnover went from 500k to 250k , if you pass over the 250k you will pay 16% of profit. Also if you earn more than 100k , remember you also need to pay a 19% VAT. Basically Romania wish to get ride all of this, and not be a "fiscal paradise" anymore. they want "a modern tax of 20% to 60% , like in others European countries."

The only problem in Romania is that if you haven't paid your taxes, you will be taxe 70% now fined approximately 30% per year. The taxable rate for unpaid taxes was 16% before. So in the past for 100 euros it was 916% of 100E ) + 30%*5. they like to come back 5 years ago to check or get confused sometimes. Now for the undeclared taxes you will be paid 70% not 16%. Another problem is that if someone abuses you, even by mistake, Romanians have a mentality not to interfere, to stay away. So you run the risk of going to jail because of a prank, without evidence, because no one will want to attack their colleague in the system.

The CRS system does not work for everyone, I think because most Romanians are away. If you have never been to pay taxes, I think that somehow you are not registered in their database. There were many video chat models who went to ANAF (Romanian IRS) to pay tax so that they could have papers at the bank to get a loan to buy an apartment. ANAF immediately asked for his papers, not for the last year, but for the last 5 years, and you ended up paying almost everything you earned, not just that 10%. Now instead of 16% it will be taxed at 70%, so it will be even worse. 4 times worse. and if those girls quit video chat, the state would still call them to tell them how they earn money for food... and that they are suspicious of getting their money out in other ways.
 
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Most of high tax countries are aggressive towards their own citizens.
The only solution is to live in tax free countries or have some non-dom regime like in Cyprus, Malta
100% this! Doing all kinds of structures and setups will ONLY aggravate the tax monkeys even more.
The USA in the '80s, as many of you know, was overflowing with crimes and violence, especially in NYC. When I first arrived in the USA in the '80s, I asked my academic advisor, "How can I avoid these crimes and violence?". His answer resonates to this day:
"Jafo, do NOT live, walk, or drive through the ghetto, and do NOT interact or even say 'hello' to people in these crime-ridden neighborhoods." smi(&%

Same with the Taxman. Don't live, walk, or drive through their "ghetto" and do NOT interact with them at all. ;)

It can't be any simpler. :cool:
 
Netherlands. The tax authorities there have a team that is kind of above the law. They go above and beyond to chase everyone for whom they think the correct amount of taxes wasn't paid. This team also does bend the rules here and there. Most cases they try to settle out of court as to avoid creating case law. It also helps them in continuing their (borderline?) criminal behaviour.