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EDITORIAL
June 23, 2003   VNN8157  

Tax Evasion Or Tax Avoidance

BY NITYA SIDDHA DASA

EDITORIAL, Jun 23 (VNN) — In response to th article "Tax Evasion Tactics Bad For Movement" about tax evasion tactics bad for the Iskcon movement. Firstly I think we should draw up a distinction between tax evasion and what can be termed tax avoidance. One is illegal the other is not. Certainly there is nothing wrong with tax avoidance, many directors of companies all over the world practice it quite legitimately.

When you think that in the U. K. for example £68 of every £100 that is spent goes to the government in taxes it's hardly surprising that anyone would look for legal loopholes in the tax system. What does the government do with all of this revenue?No one precisely knows, although it is supposed to be used for improving the health and education system, the transport system etc. , Yet recently we have heard in the press that they are laying teachers off due to lack of government funding and that the transportation system is getting worse?In a democratic society the way things are supposed to work is that the leaders get elected by vox populi and they presumably are supposed to offer thier electors a better standard of living and sense gratification. In order to do this they have to confiscate a large proportion of the populations incomes in the form of taxes.

Therefore it is said In the Srimad Bhagavatam that in the Kali-yuga the general population will be overburdened by over taxation. In our temples in Iskcon we have endeavoured to achieve registered charity status in order to be exempt from taxation wherever possible. A full time member of Iskcon living within the community is therefore classified as a monk or if you like a nun. That is, by definition one who does not claim any benefits from the government and one who does not have any other means of personal taxable income. This is of course perfectly legitimate and as long as our members follow these legal guidelines there can be no fault or legal breaches on thier part.

This is very important in order to properly preserve the hard won charity status that a temple or community may have. Where this system may break down is when members claim unemployment benefit and gain an income at the same time (generally called moonlighting) and when a temple pays an individual a wage and that is not declared to the government for taxation. Both of these activities are illegal and as a general principle our members should not engage in these illegal activities, that if discovered by the government authorities could lead to prosecution, loss of charity status and bad publicity for the movement. We may not agree with the system of government that we a part of and certainly we are overtaxed.

But still we should follow the rules of that system in order to gain integrity and respectability and to avoid legal entanglements. As stated by the Gosvamis in The Nectar of Devotion, a vaishnava should always be straightforward and honest in his business dealings. All devotees as a general principle should follow this instruction. And in this way we can be seen as good examples for others to follow as stated in the Bhagavad Gita:Yad Yad acarati sresthas tad tad evataro janah sa yat pramanam kurute Lokas tad anuvartate. "Whatever action a great man performs, common men follow. And whatever standards he sets by exemplary acts, all the world pursues". Let all of us start doing this. Hare Krishna.

Your servant,

Nitya Siddha dasa (U. K.)


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