In most tax regimes, only expenses which are solely and
wholly for the purposes of business are tax deductible.
An individual claiming what
are clearly personal comforts as business expenses may well find himself the centre
of the living nightmare that is a tax investigation. An organisation that
permits such abuse on a large scale will be practically closed down by tax-men
crawling all over it.
So when a large organisation in the United Kingdom got very
stupid and very greedy, allowing its people to make the most ridiculous expense
claims, and deducting them from taxable income for the purposes of Britain’s
increasingly draconian revenue laws, one might expect squads of tax inspectors
to be turning the place over at dawn.
Not when the organisation in question is the House of
Commons – Britain’s parliament and the organisation responsible for those
increasingly Draconian revenue laws.
Entrepreneurs imagining this is a signal that we peasants
can be as lax in our expense claims as our self-indulgent rulers needs to be
warned that the complete opposite will soon come to pass.
Although there could be no better punishment of our avaricious
politicians than letting the tax-men loose on them – let them feel how the rest
of us live – that is very unlikely to happen. Instead the tax-men will use the
scandal as a pretext to clamp down on the expenses of some more vulnerable
group – entrepreneurs.
So always do what the Members of Parliament did not do:
ensure all expense claims are legitimate and, even if morally justified, don’t
push your luck.
Never be so foolish as to imagine for a second that rulers
and ruled are equal before the law.