Former Formula 1 CEO Bernie Ecclestone has been ordered to pay $800 million after pleading guilty to tax fraud in court in the United Kingdom. Ecclestone had previously entered a not guilty plea to…
You’re not wrong, but jail time and justice is not what motivates HMRC, or any other revenue department. They want one thing, and one thing only: The money. Putting people in jail costs money, letting rich people 'fess up and pay up is much more lucrative.
Putting people in jail is a deterrent. You do that and rich people start thinking very hard about breaking the law like that because suddenly it’s very much not worth it. They are already rich, losing a few mil is annoying but going to jail is devastating, especially when it’s so easily avoidable.
And now the rich are paying more taxes and so you make more money. Catching and convicting people of fraud isn’t exactly cheap either, and don’t forget that not everyone will be convicted.
Well, other than the fact that we don’t live in a perfect society (have you noticed yet?), because a rich, famous, influential 92 yo is probably the last person the authorities want in jail.
You’re not wrong, but jail time and justice is not what motivates HMRC, or any other revenue department. They want one thing, and one thing only: The money. Putting people in jail costs money, letting rich people 'fess up and pay up is much more lucrative.
Putting people in jail is a deterrent. You do that and rich people start thinking very hard about breaking the law like that because suddenly it’s very much not worth it. They are already rich, losing a few mil is annoying but going to jail is devastating, especially when it’s so easily avoidable.
And now the rich are paying more taxes and so you make more money. Catching and convicting people of fraud isn’t exactly cheap either, and don’t forget that not everyone will be convicted.
Why not both? Pay back 400 million, plus interest and jail time?
I think that interest is added, specifically you pay https://www.irs.gov/payments/quarterly-interest-rates based on the quarters you were missing taxes.
Not sure if the numbers quoted here include that already
Well, other than the fact that we don’t live in a perfect society (have you noticed yet?), because a rich, famous, influential 92 yo is probably the last person the authorities want in jail.