Lowtax Network

Back To Top

Your Lowtax Account

Country as a company - taxes as a service fee. What do these "companies" look like today?

Contributed by Sanemto
28 September, 2017


In this open world almost every single day we hear about changes in tax policies, introduction or abolition of taxes in one or another country, which for the average person may seem incomprehensible and complicated.

BUT, what if we take a look at a country as a company that uses tax money to provide services for its customers, sorry, citizens?

By paying taxes, everyone expects services like education, infrastructure, medicine, health care, etc., in return from the country. Thus we can safely talk about a company-customer relationship.

And today, when migration between countries is no longer a problem, and the new generation is looking for the best place to live already during their school years, even beyond the borders of their own country, we can talk about countries as global companies that attract employees, i.e. residents, and probably also potential citizens (read: "loyal employees").

So what do we get? A country (company) that loses its customers (residents) but does not reduce spending is forced to increase service fees, meaning taxes. But, as we know, when a price increase is not justified and the quality of the goods or services does not improve, customers start looking for a different "store".

And here we can see that many countries, which lose their customers, start to raise taxes. Because services must be provided, but income is falling. And it is a vicious circle, because only by a price reduction and increasing the quality of the service will the customers return. Well, if not by a price reduction, then at least by increasing the quality of the service, for sure.

The other side of the coin is much brighter. Those countries, or in our case companies, that can offer high quality services, get new, paying customers. And as the number of customers increases, prices can drop. That is, taxes may be reduced.

Today we must look at taxes as a service fee that is paid to one or another entrepreneur. And only when countries begin to fight for residents among themselves, as entrepreneurs do by trying to attract new customers, may we expect tax rates that are appropriate for the services provided. Today it is a fight for customers, but unfortunately State officials still do not think so. It is globalisation...





 

 


« Go Back to Articles

Articles Archive

Event Listings

Listings for the leading worldwide conferences and events in accounting, investment, banking and finance, transfer pricing, corporate taxation and more...
See Event Listings »