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196 points RapperWhoMadeIt | 7 comments | | HN request time: 0s | source | bottom
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arghwhat ◴[] No.43493412[source]
Black Swan was a big deal, but this article massively overstates the average Dane's faith in the system. The welfare state is certainly not reverred as a religion, and the current state of it is always a hot discussion topic with pulls in either direction.

Unlike what this article suggests, tax fraud is also relatively common (one would have to be rather daft to assume that a country with such absurdly high taxation did not have tax evasion as a key pastime - although probably not as aggressively as in places like the US), and while heavily frowned upon certainly not seen as the highest form of crime as this article suggests. Well, maybe if you ask the tax agency and the political parties pushing for ever more welfare, both of which push heavily for a cashless society where all financial transactions are fully trackable by them, but I think most would place tax evasion quite far down on the list of significant crimes.

I would instead say that the average Dane is carefree about these issues, not because they are trusting or believe their system is worth religious following, but because the issues experienced there feels quite minor compared to what seems to happen elsewhere in the world. When your concept of a significant natural disaster is a flooded basement, you tend to not worry that much about what happens locally.

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matwood ◴[] No.43494860[source]
> one would have to be rather daft to assume that a country with such absurdly high taxation did not have tax evasion as a key pastime - although probably not as aggressively as in places like the US

I think there is a distinction between avoidance (typically considered legal) and evasion (fraud and illegal). Everyone should practice avoidance, using the system as designed. IME, evasion is much higher in countries with say a VAT than the US. Paying cash for transactions, even rather large ones, is common in order to avoid 10-20%+ VAT.

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1. rambambram ◴[] No.43495599[source]
Money that is not required to be paid cannot be called a tax. Taxes are not voluntary. Things like tax avoidance don't even exist, by definition of the word.
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2. jsutter909 ◴[] No.43495761[source]
What would you call going out of your way to buy cigarettes in a lower tax jurisdiction? The word avoidance seems pretty fitting here. Taxes are as voluntary as the activity being taxed
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3. milesrout ◴[] No.43496724[source]
Presumanly is tax evasion if you buy them elsewhere then import them into your country without paying the required import duties.
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4. amadeuspagel ◴[] No.43497380{3}[source]
How about vacationing in a country that has a lower VAT because hotels and everything are cheaper?
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5. milesrout ◴[] No.43497898{4}[source]
VAT is a consumption tax. If you consume goods in a place with lower consumption taxes then the tax is doing exactly what it is meant to do.

If you buy consumer goods in a low-VAT place but transport them to a high-VAT place and consume them, then that is clearly illegitimate for the same reason that it is legitimate for VAT to be applied to imports and refunded to exporters.

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6. rambambram ◴[] No.43497974[source]
I would call that an economic decision, or an opportunistic one. How can you avoid something that's not even there?
7. arghwhat ◴[] No.43498641{5}[source]
Within EU, you have free movement of goods, and the VAT is generally paid in the country of sale, not in the country of of the consumer. There are a few exceptions to this, and other regions might have other trade agreements.

Within the EU definition, VAT taxes the company making the sale for the increase in value of a product through the processes the companies and distributors applied to it, and is not a taxation of the receipt of said value.

There is nothing illegitimate about then consuming the product in a different country. It just doesn't happen to send money to your own country's treasury.