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Never ever short the tax man. They get very angry, and then seize your bank accounts. All of them. Even the secret one you didn't think anyone would know. Even
by gregpilling 11y ago
Never ever short the tax man. They get very angry, and then seize your bank accounts. All of them. Even the secret one you didn't think anyone would know. Even the bank accounts that are for your kids, or anything that is remotely attached to you.
Better to drag out terms with a supplier than the tax man. Suppliers have to go to court, get a judgement, hire a sherrif - the tax man just decides on his own to take the bank account (don't make him angry, you wouldn't like him if he was angry)
Source: I know 3 business people (in last 25 years) that shorted tax man, got caught, bank seizures and then almost immediately go out of business. Scary how quick it happens too.
- jacquesm 11y agoAnd if you do ever find yourself in a position where you really can't pay the taxman go to them before they come to you and try to make some kind of deal. If they do come to you they will seize everything.
- swombat 11y agoIn the UK, they won't - at least not if you're a relatively small business. I've found HMRC surprisingly accommodating. Which I guess is why some people consider it a valid way to extend themselves some extra cash flow funding. It's still a very bad sign and generally correlated with the business remaining small, failing, defaulting on other debts, etc. But it's the CEO themselves who's sinking their business there, not HMRC (at least I've never observed HMRC going after a small business in this way and "seizing everything" - even though I've frequently observed entrepreneurs who were chronically late with their taxes for years.