We have seen the stage where governments all over the world started the wave of ‘Tax the rich’. The stage is wrong on two settings. In the first, we are a nation of laws, most nations are that and taxation is part of law. This results in two groups of people, the criminally inclined people who rely on Tax evasion, not paying the tax and the people relying on accountants and lawyers to set the stage of tax avoidance, which is paying the minimum they have to pay. One is criminal one is not. The tax avoidance people rely on black letter law, not the spirit of the law, but on what the lawmakers wrote down as the playing rules of a game. The rich use tax avoidance, it is not semantics, it is a state where they use the law as they can, as they are ALLOWED to do.
So what happened to bring this to the surface?
Well, the BBC gives us a long story and a decent recap (at https://www.bbc.com/news/stories-59062959) where we see ‘The Cryptoqueen’s £13.5m London penthouse’. Here we are introduced to the works of cryptocurrency scammer Dr Ruja Ignatova.
We are given a lot of emotion, but some of the facts sipe through. There is “facing charges connected to the siphoning of millions of euros from Dr Ruja’s €4bn scam – which consisted of selling something that didn’t exist, a fake cryptocurrency she called OneCoin”, a seemingly clear case, or is it? We add “the lease was signed in August 2016, financial regulators in at least one European country had already issued a warning about OneCoin. A few months earlier, Dr Ruja had pleaded guilty to fraud and other charges in a German court, after bankrupting a metal factory she’d bought and leaving 150 people jobless in 2011”, so we see a stage that tarted in 2011, 11 years earlier. A lease was extended 5 years ago with at least one warning out in the open. Then we get “According to the property deed its owner is Abbots House Penthouse Limited. An anonymous Guernsey shell company – one of 12,000 such companies that own properties in England and Wales – meaning that Dr Ruja’s name would not have to appear on the UK deed, or in public records in the Channel Island.”
Apart from the stage of Fraud and scamming, she broke no laws, she was extremely careful not to break any. Then on 25 October that year she boarded a Ryanair flight from Sofia to Athens, and vanished off the face of the Earth.
So we have an Oxford educated woman who knew hat strides to walk and she vanished with up to 4 billions and the existence of the current laws allows her to remain unfound until she is old, grey and still worth millions at that point. She won’t care what they call her. She will not care as she lives in her private golden cage, surrounded by walls of anonymous stages and staff (mostly lawyers). Consider if the law is useless to capture a criminal who knows the laws, what do you think will happen to a lawful obedient citizen with equal if not more wealth? What I stated again and again for 11 years is that tax laws need an overhaul. All these emotional people shouting ‘tax the rich’ is fun for TV, but useless in the stage of the law, until they are correctly adjusted.
And the deceived investors? The ‘OneCoin Investors Entirely Dismiss Class Actions Lawsuit’ headline shows it. They no longer stand a decent chance of getting their money back. Het getting found and serving 90 years in prison is the best they can hope for. And those chances do not look good at present. Consider a wanted person named Ghislaine Maxwell. It took forever to arrest her in Bradford, New Hampshire by the FBI on 2 July 2020. It took them years to get a handle on her and she was wanted in plenty of places. The ultra rich are not breaking laws, the are not wanted and they are allowed to move what THEY own. The stage is laughable, the FBI and other parties required years to make a case, in case of one convicted fraudster 11 years and nothing was gained, not even an arrest. So do you still think I was blowing some horn? The flaccid politicians who claim and not deliver, they are part of the problem and them not overhauling the tax laws for well over a decade is a first sign of evidence. Inaction surpassing a decade, consider that evidence and see where that takes you.
The BBC article (beside the added emotions) is quite the revelation, you should take notice, because this helplessness will continue for at least another decade and I do understand it is too early to say, but when deforestation does not end in 8 years, you’ll know I am right and we both get to take that knowledge to our graves, that is where we are all heading anyway.
The model citizen in a citizen model is a joke, because if the law decides what a model citizen is, we also hold the first clear legal evidence that it pays to be a criminal, did you realise that when you read the BBC article?
One response to “The citizen model”
Pingback: Crimes pay better | Lawrence van Rijn - Law Lord to be