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I am familiar with this scandal (but not a finance expert or anything). The problem with loopholes is that it's up to interpretation. Is it intentional? Is it
by Gunax 6y ago
I am familiar with this scandal (but not a finance expert or anything).
The problem with loopholes is that it's up to interpretation. Is it intentional? Is it legal? These are hard problems to determine.
America famously offered a tax benefit for 'manufacturing'. But what constitutes manufacturing? If I have a restaurant, am I manufacturing food? It's hard to say.
I don't think what Shah did was criminal. But I do think the governments should be able to demand that he return the money if a court rules that their interpretation of the law was wrong,
- therealx 6y agoI think it's very unfair to give someone money and then demand it back. It puts people in awful situations financially. I know people that have been ruined via this when it happened with their taxes (and they weren't doing anything illegial) or unemployment.
- guitarbill 6y agoThis isn't a small, poor individual; or even a small local business - so I'm not convinced the analogy holds, or at least I'm much less sympathetic. Going from half a mil to 700 mil has to raise a few red flags. Even if they were forced to give back 80%, they would hardly be left desolate.
- Gunax 6y agoBut it's also unfair to fraudulently receive money from someone. If you accidentally gain because someone gives you money (say they sent it to the wrong bank account) it isn't fair to keep it.