The state – taxpayer, the everlasting opposition
If to wonder why people pay taxes, one can find only one logical answer – because it is an obligatory procedure, which is established by a government, and people have to pay them. Concealment of the taxes or tax evasion is fraught with a variety of sanctions from the state fiscal authorities for tax resident of the country.
Wrong psychology, or stealing is bad
Peculiarities of the human mentality often force to consider various decisions to reduce the taxable base as something illegal. And for many people, tax evasion or reduction of the taxable base are associated with violations. Surely, for state it is profitably that the situation remains unchanged, and the payment of taxes looks like a civilized and noble process as a result of the free will of the citizen.
But this problem is not so simple, if to contravene is bad, and it is risky not to pay the tax levied by the state.
Motivation of the taxpayer
For clarity, some examples of motivation of citizens to pay the levied taxes can be given. Let’s consider how does the governmental scheme work and what are the possible consequences of non-paying the taxes.
For example you don't have enough time to pay the property or another tax. What is waiting for the tax defaulter? First of all, the authorities will try to notify you in written form about the appeared debt, in other words, you will receive a notification from the appropriate fiscal body. Then, if the reaction is not followed, you will have to meet with the representatives of the authorities, with all the ensuing consequences, up to the imprisonment and confiscation of the property.
Of course, it is a very superficial schematic description of work of the state fiscal authorities, and there can be a number of intermediate stages between the main stages of levying the taxes. But, the key one is the first contact of the state and the taxpayer, namely the written notice.
The purpose of the written notice is to make it clear to the taxpayer that it is better to fulfill this requirement on a voluntary basis, and to identify clearly the risks of non-payment of the taxes. For the majority of the potential taxpayers it is enough to send a written notice to motivate them for payment.
Your motivation when paying taxes
For example you pay taxes purely for civil motives. For you such an act is an action that characterizes you as an active and responsible citizen. When you pay taxes you remain honest and show the public consciousness. You realize that your taxes will be spent on building roads, hospitals, wages for public employees and etc.
Now, imagine that paying taxes is no longer compulsory, the government made it voluntary. You will also be receiving notifications, but you can ignore them without any negative consequences and sanctions from the state. The state has no longer the levers of influencing and taxes are paid at a will. What will you say, are you still willing to pay monthly tax payments?
If the answer is negative, it means that the primary statement with reference to the civic stand and voluntary payment of the taxes will be false. Dare to admit that you pay taxes only because of the fear of liability to the state. And it is normal.
Let’s presuppose that you are willing to pay taxes even on a voluntary basis, when the state gives the right for a choice. For example, the submission of the tax returns is implemented in usual way, one time at the end of the tax period. You are reported that your filed declaration does not match the stated form, and you need to come again to add and to correct the information. In addition, you are liable for a fine for the expired days, are you still willing to pay taxes voluntarily?
A negative answer to this question is a clear indication that you pay taxes, just because of the fear of the liability provided by the legislation.
Now let’s suppose that in order to reduce the tax burden, you are actively engaged in charity. But, under the current rules, it does not affect the taxable base, and you have to pay taxes on a common basis. Are you ready to do charity work and, in parallel, to pay a percent to the state treasury for it?
If «Not», then your motivation to pay the taxes is the fear of the liability provided by the legislation.
You continue to pay taxes, in spite of everything. There is a coup d'etat in the country and change of the ruling echelons of power. Now the activity of the previous tax service deemed illegal, and the competing market participants come on the stage. The state values are rethought, but the taxes remain voluntary.
Are you ready to continue to pay the taxes voluntarily?
The main motive of the taxpayer was and still is a fear of occurrence of the certain legal consequences. We pay taxes, only because tax evasion or failure to pay, the state can bring us to justice with all the ensuing consequences. In fact, the state tax system is the ideal mechanism for levying taxes from the citizens.
Once you understand this idea and get a feel of its content, you will start searching for the mechanisms and tools for protection and prevention. It is obviously, if one understands that he is systematically looted, he creates the appropriate protection, namely optimizes taxes.
And the fact, that in a civilized society, the taxpayers voluntarily part with their earnings, should be viewed as a deficiency in the state system. Consider the optimization of the taxable base, not as a way to reduce the payments to the budget, but as an opportunity to earn more, and then you will get the understanding.