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The only one at fault here are the governments that allow this. The government is the one trying to collect money, they are the ones who make the rules about collection, and they are the ones with the power to enforce said rules.

If governments are allowing this, it's because they want to, not because of some accidental goof.



It's surprisingly hard to get this right when companies can hire teams of people who's only job is to find these kinds of tax avoidance schemes.


Well, I surely don't know all of the subtleties involved. In fact, I'm quite sure nobody does. Again, I'm being US centric here, but our tax code is pretty absurd.

You can download a copy here: http://www.gpo.gov/fdsys/pkg/USCODE-2011-title26/pdf/USCODE-.... I've read in many places that the US taxcode is > 70,000 pages. Maybe that includes state taxes. This pdf is a little over 3000 pages.

Still pretty complicated, and makes plenty of room for maneuvering in tax avoidance efforts.




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