Taxonomy for Tax Fraud

April 14, 2012

As the buzzword craziness shifts from taxonomy to big data, there is an interesting spin on a taxonomy. Navigate to “Book Cooking Guide”. (The headline alone will alert the MBAs that this is a write up from the Economist newspaper which sure looks like a magazine to me.) The write up presents some tips on fudging the books for the purpose of tax fraud, snookering stakeholders, and other MBA style activities. Here’s the passage I noted:

The IMF has a helpful laundry list of ways to keep sneaky politicians in check. Accounting measures should follow the movement of economic value, not cash, so that delaying pay packets until next year (or retirement) has no effect. Governments should publish net worth, which encompasses assets and liabilities, so taking over pension schemes is less appealing. Budgets should forecast up to 50 years out, so the full effects of policy are clearly seen.

Are economic methods satisfying, even reassuring?

Stephen E Arnold, April 14, 2012

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