Crim Just Soc Recon Ils 203 by Hermann Mannheim

Author:Hermann Mannheim [Mannheim, Hermann]
Language: eng
Format: epub
Tags: Social Science, Sociology, General
ISBN: 9781136265884
Google: vdGAAAAAQBAJ
Publisher: Routledge
Published: 2013-08-21T04:49:10+00:00

(b) Taxation Fraud.

For several reasons, taxation frauds are of considerable interest to us: First, they are, for all practical purposes, among the most important white-collar crimes. Second, the well-known phenomenon of a nucleus of downright criminal behaviour surrounded by a much larger area of anti-social but not illegal, or illegal but not criminal, actions can be studied here perhaps more clearly than anywhere else. And, thirdly, a crisis in values has recently become apparent in this field which may be symptomatic of a general change in socio-legal attitudes.

The criminal law of taxation is based upon the distinction between tax evasion and tax avoidance. In theory, this distinction is simple and straightforward: evasion constitutes a violation of the criminal law with all its consequences, whereas mere avoidance means some more or less artful juggling which, though in all probability very anti-social, still manages to keep within the letter of the law. Sometimes, the distinction is made between evasion and the “ minimizing ” of taxes, which latter is defined as “ the reduction of legal tax liability to the lowest possible amount through the skilful utilization of every legitimate method ”.1 We do not intend here to deal with tax evasion proper. Its legal problems present no particular difficulties, except such of evidence, and in Criminal Statistics offences of this type appear as an inconspicuous appendix to the much more impressive figures of motor-car and dog licence offences. The really dangerous tax offender does not evade; he avoids. Unfortunately, it is very difficult in practice to discover the right line of demarcation, and, as Judge Ferdinand Pecora has pointed out in his remarkable study of American conditions,2 it is often only the outcome of legal proceedings which makes it retrospectively clear whether in an individual case the accused has been guilty of the offence of tax evasion or whether he has merely made use of his solemn right as a citizen to “ avoid ” the unnecessary payment of taxes. This state of uncertainty is no doubt undesirable and should be remedied. The task before the legislator, however, is not solely one of clarification and definition. He has, above all, to consider whether the domain of mere tax “ avoidance ” has not in recent times been too much extended at the expense of “ evasion ”. The drawing of the right line of demarcation is, of course, largely dependent upon the spirit of social philosophy in which the task is approached. Only recently, we have been provided with a public re-statement of the old philosophy, formulated more pithily and uncompromisingly than one might have expected in these days: “ Taxation ”, writes Lord Quickswood,3

is prima facie a wrong, for it consists in taking from the taxpayer what belongs to him; and that is prima facie wrong. Taxation is justified only by the authority of the State, which is expressed in the law. The taxpayer is morally bound to obey the law, but is not bound beyond the law; for apart from the law taxation would be blackmail or racketeering.

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