[HN Gopher] Tax System in the Faroe Islands
       ___________________________________________________________________
        
       Tax System in the Faroe Islands
        
       Author : programLyrique
       Score  : 77 points
       Date   : 2023-01-08 11:34 UTC (11 hours ago)
        
 (HTM) web link (prospect.org)
 (TXT) w3m dump (prospect.org)
        
       | cm_silva wrote:
       | In Portugal, if you are an employee or pensioner and have no
       | other sources of income, the tax form is filled in automatically
       | for you. Just confirm if you want, and hit 'send'.
        
         | pavlov wrote:
         | This is the case in almost all European countries nowadays.
         | 
         | The US tax and banking systems are so bad that it's genuinely
         | hard to understand from the Euro perspective.
        
           | paulryanrogers wrote:
           | US system is difficult by design. Automation would make
           | filing less painful, and one party dislikes taxes so prefers
           | people feel the pain.
        
             | lokar wrote:
             | The IRS could do a simple automatic return for the vast
             | majority of Americans. Lobbying from intuit prevents it.
        
               | Turing_Machine wrote:
               | While Intuit and their friends do lobby, the US tax code
               | was fiendishly complex long before Intuit was even a
               | thing.
               | 
               | "The income tax has made more liars out of the American
               | people than golf has. Even when you make a tax form out
               | on the level, you don't know when it's through, if you
               | are a crook or a martyr." -- Will Rogers
               | 
               | Will Rogers died in 1935.
        
               | lokar wrote:
               | But the majority of Americans have only w2 income and no
               | deductions
        
               | 1123581321 wrote:
               | Their taxes are easy, too. Just a handful of clicks
               | through a free e-filing system. Most can also use a free
               | in-person filing service (VITA.)
               | 
               | Most of the thousands of hours you hear about comes from
               | working through legitimate complexity (complicated
               | assets, stock splits, self-employment, etc.)
               | 
               | That's not to say it wouldn't be good to have more
               | computing thrown at automating the rules for that
               | complexity.
        
               | Turing_Machine wrote:
               | Right. Even a paper 1040EZ doesn't take more than a few
               | minutes... probably even less online.
        
               | ghaff wrote:
               | The 1040EZ was eliminated I believe. But the same applies
               | to the 1040 if you're just basically entering W2 info.
        
               | ratg13 wrote:
               | They already do your taxes for you. This is how they know
               | if your returns are off or not.
               | 
               | The only difference is that in the rest of the world,
               | they show you the calculation the government came up with
               | first.
        
               | Turing_Machine wrote:
               | > They already do your taxes for you.
               | 
               | They have no way of knowing what all your business
               | expenses are (especially ones that don't require sending
               | the recipient one of the various Form 1099s). They can
               | look at what you _claim_ as business expenses and
               | retroactively require you to show proof of those expenses
               | (i.e., audit you) if they seem unreasonable, but that 's
               | an entirely different thing.
        
         | LatteLazy wrote:
         | In the UK, less than 10% of the population even file a tax
         | return. For 90% of people tax is just taken at source. Unless
         | you have a small business, rent out properties or work abroad,
         | HMRC already knows what you needed to pay and get's it right
         | 99% of the time and your employer/pension provider just
         | withholds as required. It's always baffled me that so many rich
         | countries don't operate like this...
        
           | gpderetta wrote:
           | I do my own taxes on the UK, it is not complicated, but it
           | would be everything a billion time easier if all brokerage
           | accounts [1]and banks had a simple way to get all
           | transactions in a tax year in a single csv file instead if
           | having to do a billion clicks and having to parse dozens of
           | pdf files!
           | 
           | Also can I have everything in a single unified gui?
           | 
           | [1] especially those barebone accounts used for employee
           | stock grants.
        
             | LatteLazy wrote:
             | That would be perfect. It would be so much better if they
             | just sent you a form with a few numbers on. And the maths
             | and format were the same irrespective of the firm. One from
             | each of your brokers, add the numbers together, put onto
             | tax return, submit and sleep soundly.
        
       | nsteel wrote:
       | They could send that journalist to almost any country and
       | experience a better tax system than the US. Although it sounds
       | like a nice trip and he got some hikes in.
       | 
       | > Filing taxes takes up an estimated 6.5 billion hours each year
       | --as the right-leaning Tax Foundation points out, the equivalent
       | of 3.1 million people working full-time for the whole year.
       | 
       | It's just a staggering level of waste. But hey, keep shuffling
       | stuff around until that "obnoxious paperwork" is technically only
       | one piece of paper (except for all the schedules you need to also
       | include). It's beyond dumb. Sort yourselves out, America.
        
         | BariumBlue wrote:
         | Turbo tax and H&R Block, companies that produce software for
         | filling taxes, lobby to keep taxes complex and non-easy (unless
         | you pay for their software)
        
           | beej71 wrote:
           | This is why I still do taxes myself, including itemization
           | and SE. Free fillable forms gets me e-file.
           | 
           | If there's ever anything in unsure of, I hire an independent
           | tax person to do it. Then if I have to do it again, I use
           | that as a template.
           | 
           | Another option is a lot of these places allow you to compute
           | the results without paying, and you can use that to check
           | your work.
           | 
           | Overall, a royal pain in the ass, but at least those fuckers
           | don't get a dime out of me.
        
             | ausbah wrote:
             | in most cases it's pointless for people to file their own
             | taxes. governments already n ke their income streams and
             | can tax appropriately at the source. just the idea of
             | people having to do their own taxes represents those
             | "fuckers" taking your time away
        
           | AlexTWithBeard wrote:
           | Well, the easy part of tax filing is easy: yes, it's a bit
           | tedious in a sense that you have to copy some stuff from your
           | W2 to 1040, but that's it.
           | 
           | Calculating part time rental property depreciation is
           | complicated, but that's because it IS complicated.
        
             | sokoloff wrote:
             | Exactly. The ordinary earned income portion of our income
             | is 80% or more of our income and 1-2% of the tax filing
             | burden/complexity.
        
               | LikesPwsh wrote:
               | The imbalance is that it's more like 2% of tax complexity
               | but 80% (made up numbers) of time spent.
               | 
               | Assuming no submission is equivalent to a submission with
               | earned income only (standard in Europe) would save an
               | incredible amount of time.
        
               | sokoloff wrote:
               | I think ordinary income is < 5% of the burden (not just
               | complexity). Think about where the time is spent on your
               | own return: it's not copying 10 numbers from your W-2 or
               | counting your kids, but rather figuring your investment
               | gains/losses, K-1s, Schedule C for your side work or app.
               | 
               | People with only earned income already have a very easy
               | time of it here as well.
        
               | ghaff wrote:
               | The W-2 case with maybe a 1099 and standard deduction is
               | pretty simple. And should probably be even simpler by
               | autofilling a "Here's what we think you owe/are owed"
               | return. But you get into complex returns pretty quickly
               | for the reasons you describe. I don't even have that
               | complex a return and what I got from my accountant was
               | probably a 1/2 inch thick last year.
        
               | lazyasciiart wrote:
               | This isn't true. Lower income people are more likely to
               | work more than one job simultaneously, or to do casual
               | work or a string of jobs, or be 'contractors' than have a
               | single W2 with accurate numbers. Only 20% of taxpayers
               | who qualify for free direct filing use it - mostly
               | because they don't even know it exists. Many Americans
               | are challenged by even the process of completing the
               | form.
        
           | dan-robertson wrote:
           | I read theory a lot and I can see it as an argument that the
           | filing process for Americans with reasonably simple
           | situations are painful and difficult (ie that there's no
           | government website[1] to file for free, or that the IRS can't
           | fill in details for you). But I would think tax companies are
           | not hugely important in the grand scheme of things and that
           | the actual reason that tax is so complicated is more broad,
           | eg:
           | 
           | - many layers of taxation due to the political structure of
           | the US - federal, state, city, county, maybe also
           | school/water board?
           | 
           | - lots of different deductions exist, and probably for any
           | deduction there are politicians who want it to stay. Each
           | individual deduction may be well meaning (or the result of
           | fraught negotiations) but the whole is undesirably
           | complicated and hard to fix. The rich also have an advantage
           | in a more complicated system but AMT was created so
           | presumably this advantage has limits.
           | 
           | While the first point seems to somewhat naturally fall out of
           | the US political system, I don't have a great explanation for
           | why the second should apply in the US but not other
           | countries? E.g the U.K. tax system has a few special cases
           | (something to do with child care, some married couples
           | things, some ability for farmers to carry losses forward,
           | maybe some special rules for reverends or Lloyds
           | underwriters?) but nowhere near as many as the US. I think
           | both tax systems are quite old but maybe some U.K. government
           | in the 20th century decided to simplify it a bunch? Certainly
           | a bunch of old taxes like rates don't really exist for
           | individuals anymore.
           | 
           | [1] presumably the US government have been terrified of
           | launching big websites since healthcare.gov too.
        
       | alkonaut wrote:
       | Most of the benefits listed, apart from the extremely simple tax
       | code, exists in all modern countries country (here I use the
       | tautological definition of "modern" as meaning somewhere where
       | everyone has a bank account and "doing your taxes" is typically
       | less cumbersome than accepting a cookie banner).
        
         | AwaAwa wrote:
         | Always useful when you can define 'modern' to preclude the
         | major economies of america. Which is beside the point the
         | article is making.
        
       | digvalley wrote:
       | Well,
       | 
       | 1. the tax rate is high (50%)
       | 
       | 2. resources (fish) is widely corrupt and just a few billioners
       | reap the benefits (proportionally)
       | 
       | 3. there are loopholes. Shippers who work for a faroe islands
       | company, work abroad, has their residence in an other country pay
       | 0% tax (something like that)
       | 
       | 4. the tax code has not much less complexity than say norway.
        
       | jmyeet wrote:
       | Let's list out a partial list of major US tax problems:
       | 
       | 1. As we all know, tax preparation is intentionally complicated
       | and hard thanks to lobbying by the tax preparation industry;
       | 
       | 2. Access to the financial system should be a right. This article
       | correctly points out there are ~6 million "unbanked" individuals.
       | I haven't actually seen this problem in other developed
       | countries. People will quite literally take their paycheck and
       | cash it;
       | 
       | 3. Also noted here: decades of Republicans starving the IRS (and
       | pretty much everything else the government does bar the military
       | of course). This creates a cycle where a starved government is
       | then used as an argument to further starve the government. It's
       | not surprising the Republicans are so incensed at last year's
       | bill to fund the IRS and paint it as armed IRS officers coming
       | and seizing your mobile home to try and rally support for it.
       | It's the same reason the 15% minimum corporate tax was opposed
       | even though the nominal corporate tax rate is 21%: to benefit the
       | ultra-wealthy and corporations;
       | 
       | 4. Deductions. Honestly pretty much everything should be gotten
       | rid of for personal income other than _maybe_ retirement saving.
       | But there are simply way too many vested interests here for this
       | to ever happen;
       | 
       | 5. We need to annually tax unrealized capital gains;
       | 
       | 6. Stop double taxing dividends. This leads to a lot of
       | unnecessary complexity (eg passthrough corporation tax benefits).
       | Dividend tax imputation is not hard;
       | 
       | 7. Tax trusts as we do estates;
       | 
       | 8. Tax land use based on assessed value, particularly for single-
       | family houses. A $1 million house should pay higher property tax
       | than a $1 million apartment.
       | 
       | The US really is a dystopian hellscape.
        
         | PopAlongKid wrote:
         | >As we all know, tax preparation is intentionally complicated
         | and hard thanks to lobbying by the tax preparation industry;
         | 
         | That ignores the lobbying by other industries for their
         | favorite loopholes: mortgage interest, like kind exchanges,
         | carried interest, R&D credits, and so on. Much of the
         | complexity in the tax code is actually to close the loopholes
         | that taxpayers are always finding, which has nothing to do with
         | the tax prep industry.
         | 
         | > Deductions. Honestly pretty much everything should be gotten
         | rid of for personal income other than maybe retirement saving.
         | 
         | This ignores the sizable impact of tax credits -- are you
         | proposing those all eliminated also? Currently there is only a
         | _deferral_ of tax on qualified retirement savings, except for
         | Roth IRA earnings (not contributions). There should also be tax
         | free /deferred savings allowed for health care, so that it is
         | not tied only to employment.
         | 
         | >We need to annually tax unrealized capital gains;
         | 
         | Even on someone's primary residence or other personal-use
         | property? How do you determine fair market value? And it would
         | only make sense if paired with annual deduction of unrealized
         | capital losses.
         | 
         | >Tax trusts as we do estates;
         | 
         | This makes little sense. For income tax, trusts and estates are
         | already taxed essentially the same. If you are referring to the
         | estate/gift tax, the assets in a trust after death already go
         | through the estate tax regime, why would you do it twice?
        
       | cs702 wrote:
       | Without a doubt, the US tax system is broken in mumerous ways. To
       | a close approximation, _everyone_ agrees on that.
       | 
       | But the OP's notion makes about as much sense as asking if Amazon
       | can somehow draw lessons for improving the efficiency and
       | simplicity of its global software and hardware infrastructure by
       | studying the super-simple software and hardware infrastructure of
       | some tiny company. It strikes me as... highly unlikely.
       | 
       | The economy of the Faroe Islands is both very, very small (annual
       | GDP is 166x smaller than Amazon's annual revenues) and very, very
       | simple (45% of exports are salmon fish), making it much easier to
       | find a really simple system that works reasonably well for
       | everyone. A quick comparison is instructive:
       | Population         GDP
       | --------------------------------------       United States
       | 333,287,000  $25,035.0B              Faroe Islands       54,000
       | $3.1B       --------------------------------------
       | 
       | That said, by all accounts the islands are incredibly beautiful
       | and their people are remarkably nice.
        
         | dr_petes wrote:
         | I don't think bigger always needs to be more complex.
         | 
         | For simplicity sake, a 10% tax on income would scale
         | infinitely, no matter how big an economy grows (I'm not arguing
         | in favor of this tax).
         | 
         | But the point of the article, in my opinion, is that US has a
         | large problem, costing tax payers an estimated 40 billion in
         | labor figuring out their taxes, where other countries have
         | almost automated the entire process.
         | 
         | I think there is something to be learned from there, as most
         | people would agree that the US tax system is a mess.
        
           | cs702 wrote:
           | > I don't think bigger always needs to be more complex.
           | 
           | And yet, the bigger a software company gets, the more
           | labyrinthine its systems get. Ask any software or IT engineer
           | who was at, say, Amazon, Facebook, or Google, as the company
           | grew from serving a few hundred thousand customers to
           | hundreds of millions of customers.
           | 
           | Similarly, the bigger a country is, the more labyrinthine its
           | systems are (tax, legal, regulatory, etc.). Large distributed
           | systems tend to become very complex, even though _no one_
           | wants them to be. There are always many competing interests
           | negotiating with each other and reaching compromises that no
           | one likes.
        
             | naasking wrote:
             | > Ask any software or IT engineer who was at, say, Amazon,
             | Facebook, or Google, as the company grew from serving a few
             | hundred thousand customers to hundreds of millions of
             | customers.
             | 
             | It's not the number of customers so much as the number of
             | diverse things they do. Ditto for a country's taxes. I
             | expect the Faroe islands' industry is fairly limited
             | compared to the US, so they may not need as many
             | exemptions, tax credits, deductions, etc. No doubt there's
             | still considerable room for streamlining though.
        
           | sokoloff wrote:
           | What percent of that $40B is relating to "taxes other than
           | ordinary earned income" (the part that the Faroes have
           | simplified)?
           | 
           | I suspect it's very high 90s of percent.
        
       | twawaaay wrote:
       | If I was a government body responsible for setting tax rules
       | after reading the article I still haven't learned anything.
       | 
       | First of all, tax systems are typically result of huge forces
       | within the country and represent history of negotiating between
       | parties or other groups of people that each tries to get
       | something for themselves while the government needs to deal with
       | finite budget and groups of people dissatisfied that somebody
       | else got something but not them.
       | 
       | Second, Faroe Island is a tiny, tiny country. With any kind of
       | organisation, as the organisation grows things get more and more
       | complicated.
       | 
       | And third, they point out Faroe Island has a huge GDP that comes
       | from a fortunate resource. Countries that are in this position
       | tend to have simpler tax systems because they do not need to rely
       | on their citizens. Citizens rightly assume that if the country
       | has a national resource they are entitled to have the resource
       | pay for the infrastructure and government and not them. There is
       | no need to fight to figure out where the money will come for this
       | or that project -- the answer is always pretty much the same and
       | it is not to put a levy on citizens but rather on the resource
       | the country has.
        
         | monkeycantype wrote:
         | ...Australia looks on confused... what you're saying mass
         | resource extractors should pay tax for that...
        
       | messe wrote:
       | > "When the year is over, almost everybody ends up with 'Oh, it's
       | correct. I don't have to pay any more, and I don't get any money
       | back,'" said Morkore. Continuous collection also eliminates the
       | time risk of the government losing out on tax payments if
       | companies go bankrupt before TAKS could cash their checks.
       | 
       | Is this not normal in most of Europe? In Ireland, I've found it's
       | usually only off by a few cent at most, which is then adjusted
       | for in the next calendar year by automatically reducing tax
       | credits appropriately.
        
         | rmnwski wrote:
         | In Germany it's a complicated bureaucratic mess and people
         | often get can get a lot back but of course not always.
        
         | jakub_jo wrote:
         | Yeah I think so. Often time it's invalid if you have periods
         | without a job. So you paid too much in advance. Then you get it
         | back.
        
       | dxs wrote:
       | For several years now I've been wondering about a couple of
       | things.
       | 
       | One would be to come up with a simple taxation formula for
       | individual income.
       | 
       | (1) No deductions.
       | 
       | (2) Peg the tax rate to a formula, something like tax = 1% per
       | $10,000 of income. (These specific numbers would not work very
       | well.)
       | 
       | This would be simple, absolutely predictable, and would set a
       | maximum income at whatever the culture decided was right.
       | 
       | And/Or: eliminate inheritance.
       | 
       | This could replace a maximum income because no one could pass
       | along a fortune to heirs, and wealth would be automatically
       | recycled on death.
       | 
       | (1) Set up a citizen's commission that selects members at random
       | for a three-year term, 1/3 of members to be replaced each year.
       | 
       | (2) The commission decides what entities are worthwhile.
       | (Charitable, non-profit, humanitarian, research, whatever.)
       | 
       | (3) At death, any remaining funds belonging to a person are
       | disbursed.
       | 
       | (4) Disbursed funds go to eligible entities selected by the
       | deceased, or to the U.S. Treasury as a default.
       | 
       | (5) Wealthy individuals can support their children through
       | college up to age 25 or so, after which the kids are on their
       | own.
       | 
       | (6) Not necessarily any limit on how much wealth a person could
       | accumulate because it would be impossible to develop a hereditary
       | plutocratic class.
        
         | dogma1138 wrote:
         | That sounds like a dystopian nightmare that is incompatible
         | with private ownership of anything.
        
       | WeylandYutani wrote:
       | Faroe Islands is a tiny speck. Countries are a cross between oil
       | tankers and nuclear power plants.
       | 
       | There's nothing to learn politicians have debated every single
       | tax system known to human civilization. But even small changes
       | are Herculean tasks.
        
         | soneil wrote:
         | I always find "but they're small" to be a lazy argument for
         | things like this - I heard it recently in regards to Estonia's
         | digital services also.
         | 
         | "It's easy for them to do, but we're a huge country with near-
         | infinite resources, we couldn't possibly". I mean sure, it
         | means you have to scale the operation to match, which is why
         | the IRS has more staff than the Faroes have population. But "we
         | can't take on these projects, we're too big" makes it sound
         | like we should have expected Belgium to land on the moon
         | instead of the US.
        
           | pigsty wrote:
           | I think there's a difference though when a country has a
           | population less than a typical large corporation and no major
           | industry whatsoever. It's at a scale where everyone knows
           | somebody who can help you get things done.
        
             | soneil wrote:
             | What I'm not convinced of is that complexity is actually a
             | necessity.
             | 
             | For example, what's the real difference between operating a
             | fire department in a town on the Faroes, vs a town in the
             | Mid-west? It seems like a fairly cookie-cutter operation
             | where requiring more of them in total does not add
             | complexity to each operation.
             | 
             | Possibly even the opposite, where the scale of the US turns
             | into a net benefit, so you can support your own industries
             | building and providing tenders/appliances - where the
             | Faroes are (I assume) more likely to ship one from Germany.
             | 
             | So I'm not clear why taxation within a single state has to
             | be more complex than taxation within a small nation. I'm
             | not going to deny that it probably is, and probably will
             | be, but I'm less comfortable with the assumption that it
             | must be.
        
           | NoboruWataya wrote:
           | Landing a man on the moon is not a problem that increases in
           | complexity with population size, taxation is. "Things like
           | this" are exactly where "but they're small" is a perfectly
           | legitimate response. To say "oh just scale the operation"
           | ignores the fact that scaling is just about one of the
           | hardest problems we face in human organisations.
        
       | kybernetyk wrote:
       | [flagged]
        
       | expazl wrote:
       | > THE FAROES ARE ONE OF THE RICHEST COUNTRIES in the world by per
       | capita GDP--even slightly richer than Denmark itself.
       | 
       | The Faroe Islands are a strange place. There aren't many people,
       | yet you'll see huge infrastructure projects to literally drill
       | tunnels through mountains to connect at 2-3 families with the
       | main roads. A gigantic amount of public money gets pumped into
       | every part of their industry and infrastructure, funded by
       | Denmark.
       | 
       | On a completely unrelated note, the the wife of the previous
       | prime minister is from the Faroe Islands, and he has been known
       | for being bad at separating private and public interests, and for
       | cases of pumping money into specific monopolistic fishermens
       | pockets while taking huge donations from the same to his own
       | funds. The two of them also own a company that plans tours from
       | Denmark to the Faroe Islands.
       | 
       | He's no longer prime minister but managed to create a central
       | party that was key in establishing the current government. I'm
       | sure we'll see a continuation of pumping money into the Faroe
       | Islands.
       | 
       | All that said, it's a lovely place to visit, especially for
       | people who enjoy hiking and don't mind damp weather, and there's
       | some cool places to see puffins.
        
         | tokai wrote:
         | I think I read that they are planning to start lowering the
         | financial support from Denmark this year. But only by a small
         | bit. With no concrete plan of weaning fully of it. So the end
         | of the union still is far off it seems. As long as Greenland
         | wants support they should get it, as they really need it, but
         | the Faroe Islands should have been on-track for independence a
         | long time ago imo.
        
         | notahacker wrote:
         | I think the Faroes being a country with high levels of evenly-
         | distributed wealth and a profitable but not-very-diverse
         | business sector is why they get the luxury of having a simple
         | tax system with limited pressure to add deductions (that and
         | taxes not actually needing to be high enough to cover
         | government spending). Certainly the wealth is more a cause of
         | the tax simplicity than the other way round.
         | 
         | Back of the math envelope suggests the overheads of running
         | their system aren't _that_ low either (the 70m krone budget
         | serves a population of just 54000 people). The IRS budget is
         | closer to $14bn a year, but it serves around 330m people, and
         | nobody accuses the US of being a model of efficiency.
        
       | sokoloff wrote:
       | Taxing businesses on gross revenues (what "no deductions" means)
       | is a huge bias in favor of vertical integration and large
       | conglomerates.
       | 
       | If I'm a small company and participate in a chain of 8 companies
       | providing a good or service, there is a large multiple of tax
       | paid on that good as compared to a competitor who manages to do
       | all 8 things in a single company. (This is why VAT taxation works
       | better and is more common than a gross receipts tax.)
        
         | chadash wrote:
         | i guess that in a very strict sense "no deductions" might mean
         | you can't deduct business expenses, but I doubt that the tax
         | code ACTUALLY works that way. I think the article is talking
         | about individual, not business deductions.
         | 
         | If you taxed revenues, some businesses would just be impossible
         | to run. I have to imagine that there are grocery stores and
         | pharmacies in the Faroe Islands.
        
           | lokar wrote:
           | I think the article was talking about tax incentives and
           | social spending when they say deductions
        
         | analog31 wrote:
         | I wonder if the article perpetuates the confusion about
         | "deductions." I run a small business and use Schedule C on my
         | tax return. Basically, Schedule C has you write down your
         | revenues, and subtract your costs. The difference is what ends
         | up in the income section of your main form. "Deductions" come
         | later in the form.
        
         | [deleted]
        
         | Symbiote wrote:
         | Here's the English part of the Faroese government's website on
         | tax: https://www.taks.fo/en/individuals/tax/
         | 
         | And for businesses: https://www.taks.fo/en/business/starting-a-
         | business/starting...
         | 
         | I think "no deductions" means there aren't hundreds of
         | complicated rules like the USA has. The page says "Operational
         | costs should be deducted from the taxable income. Operational
         | costs are the expenses that are necessary for the business to
         | operate, such as rent, electricity, maintenance, furniture,
         | equipment, transportation, insurance, bookkeeping, telephone
         | expenses etc."
         | 
         | VAT is 25%.
        
         | 2Gkashmiri wrote:
         | VAT is called indirect TAx. Income tax is called direct tax.
         | 
         | The author means to say income tax deductions for employees on
         | their earned wages during the year.
         | 
         | They did not explain if they charge any sales tax (vat) on
         | export of fish or locally or any import duty on imported goods
         | so this is very specific about its explanation
        
       | 2Gkashmiri wrote:
       | As someone who does Indian direct and indirect taxes as my day
       | job, I can comfortably say it is "fucked up".
       | 
       | The problem starts small. They introduced a new indirect tax act
       | in 2017 (gst) and it was fine for a couple of weeks but suddenly
       | every business user was supposed to get registered at a
       | centralized portal. Cool but there was penalty for delay and
       | penalty for filing returns late. Cool. So they got an amendment.
       | Fine. Next day a notification. Next day a circular.
       | 
       | In the last 5-6 years, they have changed the act in like
       | 1200-1300 times by way of various amendments, rules,
       | notifications, orders, not to talk about court judgments.
       | 
       | You are NEVER sure if you know something to be a fact when in
       | fact 2 years ago a particular notification amended the act to be
       | read in a certain way. Then another amended it further. Then
       | again.
       | 
       | All the while the govt accepts the fact that all taxpayers are
       | not paying govt their dues so they treat them as such, Financial
       | criminals so there is jail provisions even.
       | 
       | Direct tax is no different. You annual " income tax return" is to
       | be prepared in 1 our of 7 forms. Cool. Then you have to see
       | various schedules and time limits and audits and compliances and
       | other stuff. A lot of stuff DOES MAKE SENSE but you have to have
       | practiced for 5-12 years before saying that. Then it kinda makes
       | sense on an overall level. For everyone else, go fuck yourself.
        
       | theonlybutlet wrote:
       | It's completely irrational but any mention of this place is
       | tainted by their dolphin hunts. How about learn about their taxes
       | and they learn about PR.
        
         | metacritic12 wrote:
         | The article has a good point from a few Faroese guys about how
         | the mass inhumane US harvesting of beef, chicken, and pigs, is
         | probably very similar in aggregate.
         | 
         | But when the food item is something Americans culturally eat,
         | it becomes difficult for animal rights activists to push on
         | because they get labeled as crazy immediately. Whereas food
         | items Americans are not used to eating like whale or snake gets
         | a round of applause from Americans and justifies a bit of
         | underlying racism about how that other culture is simply an
         | inhuman culture.
        
           | tokai wrote:
           | Its a bad comparison. Breeding or harvesting an animal is not
           | the same. They provide different suffering for the animals
           | and different pressures on different biotopes. Its very much
           | like the old soviet whataboutism when pressured on their
           | domestic suppression: "well in the US they lynch people".
           | Meat production in US might be bad, but its not a defense for
           | overfishing the Atlantic.
        
           | theonlybutlet wrote:
           | It's the intelligence of the animal that's the issue. Not
           | some cultural bias.
        
             | metacritic12 wrote:
             | Pigs are widely considered pretty intelligent, but I don't
             | think the median American thinks of then as more wrong to
             | eat than say chicken.
        
         | Symbiote wrote:
         | > Please don't pick the most provocative thing in an article or
         | post to complain about in the thread. Find something
         | interesting to respond to instead.
         | 
         | https://news.ycombinator.com/newsguidelines.html
        
       | bigpeopleareold wrote:
       | I was just thinking while reading this that with a country with a
       | small population like the Faroe Islands, it is a bit harder to do
       | regulatory capture. The impact is far greater and the established
       | legacy is one towards simplicity than complexity. Changes are
       | just felt more.
       | 
       | In my case, I think my taxes in Norway are easier to deal with as
       | compared to filing US taxes just because there isn't much
       | incentive to take advantage of the bureaucracy and procedures
       | around it like in the US. It's a little complex in Norway, but I
       | can and have guessed correctly what my tax burden would be
       | outside what was directly reported to Skattetaten. I imagine it
       | is even easier for tiny countries (or semi-autonomous regions)
       | like what the Faroese have.
        
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