Tax Reduction as a Moral Tool

Tuesday 5 March 2013, 12:33PM
By Andersen Accountants Limited

Some liken taxation to theft. For these people trying their utmost to remove earnings and assets from the tax net is a no brainer. People with this view point can justify their actions as they believe they are keeping what is theirs and to which the state has no right.

Most people accept the need to pay some tax in exchange for the general benefits they receive personally, and as a society. However, those people may harbour strong disagreements in regard to the use that the state puts some of their taxes to. For example, a Catholic taxpayer may strongly object to paying tax to the state if the state allows abortion on demand. A member of the 99% Occupy movement may strongly object to paying tax if some of that tax money is used to bail out wealthy bankers. A business owner may object to his or her taxes being used to subsidise people who don’t want to work or who are otherwise economically unproductive.

One solution to this ethical dilemma is tax and asset planning that enables the taxpayer to minimise the tax they pay to the state. Any tax saving could be donated to a charity in line with the taxpayer’s ethical beliefs. As long as the taxpayer acts carefully, such a solution provides a means for the taxpayer to do what is right while not placing themselves legally in harms way.

Kristina Andersen
Andersen Accountants Limited
Telephone: 09 3695198
Email: Kristina@andersen.co.nz
Website: www.andersen.co.nz