Misplaced Pages

#229770

67-480: The main concept is that a unique and central institution will pay for all medical costs and pensions so as to provide an equal level of coverage to the whole population. All incomes are taxed to fund this system. The main advantage is that its negotiating power lowers very significantly the price of medicine and the system covers systematically all expenses without limit (100% coverage for any long term or critical problem such as diabetes or cancer). The main drawback being

134-628: A constitutional state obligation to provide financial assistance to those deemed most socially vulnerable, most notably women, children, and retired workers. Nonetheless, social security was not entirely universal. The program of the National Resistance Council had envisioned universal social security, but the régime général , or unified social security program, actually created excluded miners, sailors, farmers, and government employees, all of whom were covered by régimes particuliers , or special administrative bodies. Finally,

201-639: A dependent child or children living in France under 20 (or 21 years for housing allowances to family). All the schemes of basic and supplementary pensions in France work on the method of distribution. The schemes redistribute every year, in the form of pensions paid to retirees, contributions received that year from the assets. If the rules of the various pension plans in France correspond to different concepts, they are based on common principles. All schemes incorporate mechanisms of solidarity: solidarity between generations (principle of distribution) and solidarity within

268-519: A fundamental problem with inhibiting evasion of local sales taxes is that liberal democracies, by their very nature, have few (if any) border controls between their internal jurisdictions. Therefore, it is not generally cost-effective to enforce tax collection on low-value goods carried in private vehicles from one jurisdiction to another with a different tax rate. However, sub-national governments will normally seek to collect sales tax on high-value items such as cars. One reason for taxpayers to evade taxes

335-399: A government department would, and some governments have adopted this approach. In Bangladesh , customs administration was partly privatized in 1991. Abuse by private tax collectors (see tax farming below) has on occasion led to revolutionary overthrow of governments who have outsourced tax administration. Tax farming is an historical means of collection of revenue. Governments received

402-503: A huge scale. In August 2005, Bangladesh had hired four PSI companies – Cotecna Inspection SA, SGS (Bangladesh) Limited, Bureau Veritas BIVAC (Bangladesh) Limited and INtertek Testing Limited – for three years to certify price, quality and quantity of imported goods. In March 2008, the Bangladeshi National Board of Revenue cancelled Cotecna's certificate for serious irregularities, while importers' complaints about

469-422: A list indicating any occupational diseases, their causes and the duration of incubation. In the cases of industrial accident, travel from home, or occupational disease, medical care and vocational rehabilitation are totally taken in charge by social security. In case of permanent reduction of working capacity, the victim is entitled a capital (if the rate of permanent disability is less than 10%), and an annuity (if

536-399: A lump sum in advance from a private entity, which then collects and retains the revenue and bears the risk of evasion by the taxpayers. It has been suggested that tax farming may reduce tax evasion in less developed countries. This system may be liable to abuse by the "tax-farmers" seeking to make a profit, if they are not subject to political constraints. Abuses by tax farmers (together with

603-415: A professional basis but residing in France for at least three months in a regular situation, there is universal coverage. The insured entitlement to benefits in kind of health insurance and maternity his spouse or partner when it does not have a system of social protection, dependent children and any person taken in charge by the insured and who does not benefit from a system of social protection. Since 2000,

670-400: A single generation (large redistributions between different occupational groups and gender). These principles of solidarity occurs both in the regimes, between the regimes and beyond regimes at the national level. There are transfers between the schemes, and therefore solidarity between the basic schemes, as well as mechanisms for schemes coordination. Solidarity at the national level consists of

737-583: A tax system that exempted the aristocracy) were a primary reason for the French Revolution that toppled Louis XVI. Pre-shipment inspection agencies like Société Générale De Surveillance S. A. and its subsidiary Cotecna are in business to prevent evasion of customs duty through under-invoicing and misdeclaration. However, PSI agencies have cooperated with importers in evading customs duties. Bangladeshi authorities found Cotecna guilty of complicity with importers for evasion of customs duties on

SECTION 10

#1732790838230

804-468: A universal health coverage has been in place, providing two fundamental rights for access to care: a right to health insurance for anyone in stable and regular residence in the territory and a right for the most disadvantaged, submitted to resources, to a free coverage, with exemption from fee. The first component, for basic coverage, improves access to care for people suffering from extreme exclusion, but also many people temporarily or permanently deprived of

871-400: Is ad valorem import duty, the tax base can be reduced through under-invoicing. Misdeclaration of quantity is more relevant for products with specific duty. Production description is changed to match a H. S. Code commensurate with a lower rate of duty. Smuggling is import or export of products by illegal means. Smuggling is resorted to for total evasion of customs duties, as well as for

938-427: Is a serious problem for the tax administration in many countries. Tax evasion is a crime in almost all developed countries, and the guilty party is liable to fines and/or imprisonment . In Switzerland , many acts that would amount to criminal tax evasion in other countries are treated as civil matters. Dishonestly misreporting income in a tax return is not necessarily considered a crime. Such matters are handled in

1005-413: Is disputable since avoidance is lawful in self-creating systems. Both tax evasion and tax avoidance can be practiced by corporations, trusts, or individuals. In 1968, Nobel laureate economist Gary Becker first theorized the economics of crime , on the basis of which authors M.G. Allingham and A. Sandmo produced, in 1972, an economic model of tax evasion. This model deals with the evasion of income tax,

1072-413: Is financed largely by contributions based on the wages of employees. However, new funding policies have sought to broaden the base by taking into account all the household income, and policies to promote employment led to lighten the burden of contributions on low wages. The income of social security schemes are traditionally divided along the following categories: The budget of the social security system

1139-483: Is often mandatory, and optional arrangements. The Allocation de Solidarité aux Personnes Agées (solidarity allowance for the elderly) (ASPA) is a French state pension for elderly people, whether or not they are former employees, on low incomes. It replaced the multiple components of the minimum pension ( Minimum Vieillesse ) from 1 January 2006. To qualify for ASPA, the recipient must live in France and meet age and financial need criteria. The system of social security

1206-404: Is separate from the budget of the state and is subject to a separate vote and an act of parliament (Loi de finances de la sécurité sociale). The 2010 budget amounted to 428 Bn € . Although the social security system achieved surplus between 1999 and 2001 thanks to the late 1990s economic recovery, it has since been repeatedly achieved important deficits, especially in 2009-2011 in the aftermath of

1273-423: Is stored in tax havens stays undetected in random audits. Even though there is high diversity among people who evade taxes, there is a higher probability among the highest wealth group. According to Alstadsæter, Johannesen and Zucman 2019 the extent of taxes evaded is substantially higher with higher income, and exceptionally higher among people of the top wealth group. In line with this, the probability to appear in

1340-417: Is the difference between the amount of income that the tax authority requests be reported and the actual amount reported. In contrast, tax avoidance is the legal use of tax laws to reduce one's tax burden. Both tax evasion and tax avoidance can be viewed as forms of tax noncompliance , as they describe a range of activities that intend to subvert a state's tax system, but such classification of tax avoidance

1407-402: Is the personal benefits that come with it, thus the individual problems that lead to that decision Additionally, Wallschutzky's exchange relationship hypothesis presents as a sufficient motive for many. The exchange relationship hypothesis states that tax payers believe that the exchange between their taxes and the public good/social services as unbalanced. Furthermore, the little capability of

SECTION 20

#1732790838230

1474-521: The Great Recession . The 2013 budget was forecast to reach 469 billion € and a deficit of 12.6 billion € . Marisol Touraine , Minister of Social Affairs and Health, announced in September 2016 that the social security budget would be balanced in 2017 for the first time in 16 years. In addition to the three main regimes there are numerous special regimes dating from prior to the creation of

1541-619: The Middle Ages , certain professional organizations provided limited assistance to their members. However, the abolition of corporations by the Allarde decree, in 1791, put an end to this early system of private professional collective security. It was nevertheless replaced by the sociétés de secours mutuels , or societies for mutual support, recognized and strictly regulated by the 1835 Humann law. These sociétés would thereafter be free from administrative control, and were encouraged by

1608-743: The Second World War , the National Council of the French Resistance adopted plans to create a universal social security program to cover all citizens, regardless of class, in the event that sickness or injury made them unable to work. In the UK, the first report of the British economist William Beveridge outlined the general principles that would govern the integration and evolution of social security in post-war France. Indeed,

1675-536: The ordonnances of 4 and 19 April 1945, created a generalized, national social security system similar to that described in Beveridge's plan. The Social Security is financed by payments from both employers and their employees and is administered and managed by all social partners, typically employee unions and/or companies. The Constitution of the Fourth Republic , adopted by referendum in 1946, created

1742-581: The 2008 tax gap found a range of $ 450–$ 500 billion, and unreported income to be about $ 2 trillion, concluding that 18 to 19 percent of total reportable income was not being properly reported to the IRS. Generally, individuals tend to evade taxes, while companies rather avoid taxes. There is a great heterogenic among people who evade people as it is a substantial issue in society, that is creating an excessive tax gap. Studies suggest that 8% of global financial wealth lies in offshore accounts. Often, offshore wealth that

1809-452: The CTA seeks to mitigate the misuse of shell companies for tax evasion purposes and bolster efforts to combat financial crimes within the U.S. jurisdiction. As of 2007 the most common means of tax evasion was overstatement of charitable contributions, particularly church donations. The IRS estimates that the 2001 tax gap was $ 345 billion and that the 2006 tax gap was $ 450 billion. A study of

1876-984: The European treasuries through suspected fraud and speculation with dividend tax. The five hardest hit countries have lost together at least $ 62.9 billion. Germany is the hardest hit country, with around €31 billion withdrawn from the German treasury. Estimated losses for other countries include at least €17 billion for France, €4.5 billion in Italy, €1.7 billion in Denmark and €201 million for Belgium. A paper by economists Annette Alstadsæter, Niels Johannesen and Gabriel Zucman, which used data from HSBC Switzerland (" Swiss leaks ") and Mossack Fonseca (" Panama Papers "), found that "on average about 3% of personal taxes are evaded in Scandinavia, but this figure rises to about 30% in

1943-541: The Exchequer George Osborne promised to collect £5 billion by "waging war" on tax evaders by announcing new powers for HMRC to target people with offshore bank accounts. The number of people prosecuted for tax evasion doubled in 2014/15 from the year before to 1,258. In the United States of America, Federal tax evasion is defined as the purposeful, illegal attempt to evade the assessment or

2010-563: The Pandora Papers also cites that the former Managing Director of IMF and French finance minister, Dominique Strauss-Kahn was permitted to create a consulting firm in the United Arab Emirates in 2018 after the expiry of tax exemptions of his Moroccan company, which he used for receiving millions of dollars worth of tax free consulting fees. A network of banks, stock traders and top lawyers has obtained billions from

2077-501: The Swiss tax courts, not the criminal courts. In Switzerland, however, some tax misconduct (such as the deliberate falsification of records) is criminal. Moreover, civil tax transgressions may give rise to penalties. It is often considered that the extent of evasion depends on the severity of punishment for evasion. Professor Christopher Hood first suggested privatization of tax enforcement to control tax evasion more efficiently than

Social security in France - Misplaced Pages Continue

2144-475: The UK tax collection agency stated that it would continue to crack down on tax evasion, with the goal of collecting £18 billion in revenue before 2015. In 2010, HMRC began a voluntary amnesty program that targeted middle-class professionals and raised £500 million. Corrupt tax officials co-operate with the taxpayers who intend to evade taxes. When they detect an instance of evasion, they refrain from reporting it in return for bribes . Corruption by tax officials

2211-412: The United States. In a 2017 study Alstadsæter et al. concluded based on random stratified audits and leaked data that occurrence of tax evasion rises sharply as amount of wealth rises and that the very richest are about 10 times more likely than average people to engage in tax evasion. The tax gap describes how much tax should have been raised in relation to much tax is actually raised. The IRS defines

2278-410: The accident assurance health insurance. The accident at work is the accident, whatever the cause, occurring because of or in connection with a job, to any person employed by one or more employers or entrepreneurs. Travel accident is an accident occurring on a route between work and home or during a mission on behalf of the employer. A professional disease is a disease of occupational origin and included in

2345-460: The accommodation and treatment of children or adolescents with disabilities. In case of sickness, health insurance provides daily allowances to the insured who is in physical disability and unable to continue or resume work. The daily allowance depends on the daily earning and on the number of dependent children. Health insurance also manages maternity (expenses for examinations and daily allowance during maternity leave), disability (pension granted when

2412-456: The amount of money a person or a corporation possesses. Efforts to evade income tax decline when the amounts involved are lower. The level of evasion also depends on the efficiency of the tax administration. Corruption by tax officials makes it difficult to control evasion. Tax administrations use various means to reduce evasion and increase the level of enforcement: for example, privatization of tax enforcement or tax farming. In 2011 HMRC ,

2479-478: The criteria of resources and residence. The accident insurance and occupational diseases is a branch of social security often managed by the same agencies that the health branch. It is the oldest branch of social security. The legislation go back to 1898 and were included in the 31 December 1946 law creating the Social Security. There are three social accidents for which the risk is better covered than by

2546-424: The expenses within the rates used to calculate benefits. In principle, the insured is required to advance the expenses, and social security then reimburses the insured. However, there are some conventions of "third-party payer" providing direct payment for the body to the service. Health insurance depends on the professional past or present of a person. However, for those not fulfilling the conditions of membership on

2613-474: The federal level, and no state currently collects VAT; the overwhelming majority of states instead collect sales taxes . Canada uses both a VAT at the federal level (the Goods and Services Tax ) and sales taxes at the provincial level ; some provinces have a single tax combining both forms . In addition, most jurisdictions which levy a VAT or sales tax also legally require their residents to report and pay

2680-401: The gross tax gap as the difference between the true tax liability for a given year and the taxes actually remitted on time. It comprises the nonfiling gap, the underreporting gap, and the underpayment (or remittance) gap. Voluntary tax compliance in the U.S. is approximately 85% of taxes actually due, leaving a gross tax gap of about 15%. The tax gap is growing mainly because of two factors,

2747-524: The import and export of contraband . Smugglers do not pay duty since the transport is covert, so no customs declaration is made. During the second half of the 20th century, value-added tax (VAT) emerged as a modern form of consumption tax throughout the world, with the notable exception of the United States . Producers who collect VAT from consumers may evade tax by under-reporting the amount of sales. The US has no broad-based consumption tax at

Social security in France - Misplaced Pages Continue

2814-573: The lack of enforcement on the one hand and the lack of compliance on the other hand. The former is mainly rooted in the costly enforcement of the taxation law. The latter is based on the foundation that tax compliance is costly for individuals as well as firms (tax filling, bureaucracy ), hence not paying taxes would be more economical in their opinion. Customs duties are an important source of revenue in developing countries. Importers attempt to evade customs duty by (a) under-invoicing and (b) misdeclaration of quantity and product-description. When there

2881-505: The law of 1 April 1898, referred to as the Charte de la mutualité , or Charter of mutuality. The 1898 law establishes the principles of mutualisme , as they are found today in French law; mutuelles , organizations for collective social insurance, were permitted to offer loans to any French person even if at the beginning, interest rates were too high for the average person. Alongside

2948-556: The law of 22 May 1946, limited coverage under the unified social security program to employees of the industrial and commercial sectors. In the following decades, the unified social security program would gradually be extended by various laws: The sickness insurance covers the cost of general medicine and special care and dentures, Pharmaceutical expenses and equipment, analysis and laboratory tests; hospitalization and treatment heavy care facilities, rehabilitation, prenuptial examination vaccinations, tests done in public health programs, and

3015-515: The main source of tax revenue in developed countries. According to the authors, the level of evasion of income tax depends on the detection probability and the level of punishment provided by law. Later studies, however, pointed limitations of the model, highlighting that individuals are also more likely to comply with taxes when they believe that tax money is appropriately used and when they can take part on public decisions. The literature's theoretical models are elegant in their effort to identify

3082-408: The minimum old-age pension assigned to all seniors who have limited resources, paid by the solidarity fund retirement (which also pay some family benefits), but also of state subsidies granted to certain regimes (farmers, SNCF, RATP, mining, marine, etc.), and finally of various taxes allocated to pensions. The retirement system in France is organized into three levels: a compulsory system, a scheme that

3149-499: The movement for mutual, private social insurance, legislators pushed state-sponsored social aid, which tended to nurture the principle of national solidarity. The law of 15 July 1893, instituted free medical assistance; the law of 9 April 1898, considerably facilitated the worker compensation claims; the law of 27 June 1904, created the service départemental d'aide sociale à l'enfance , a childbirth assistance program; and on 14 July 1905, an elderly and disabled persons assistance program

3216-560: The other three PSI companies mounted. Bangladesh planned to have its customs department train its officials in " WTO valuation , trade policy, ASYCUDA system, risk management" to take over the inspections. Cotecna was also found to have bribed Pakistan's prime minister Benazir Bhutto to secure a PSI contract by Pakistani importers. She and her husband were sentenced both in Pakistan and Switzerland. In early October 2021, 11.9 million leaked financial records in addition to 2.9 TB of data

3283-446: The payment of a tax imposed by federal law. Conviction of tax evasion may result in fines and imprisonment, such as five years in prison on each count of tax evasion. The Internal Revenue Service (IRS) has identified small businesses and sole proprietors as the largest contributors to the tax gap between what Americans owe in federal taxes and what the federal government receives. Small businesses and sole proprietorships contribute to

3350-405: The person is unable to work), and deaths. In order to be taken in charge by health insurance, care and products must meet two conditions: being provided by a public or private practitioner duly authorized to exercise and being included on the list of reimbursable drugs and products. Health insurance operate on the basis of tariffs set by convention or authority. Health insurance does not support all

3417-621: The rate is more than 10%). In case of the death of the insured, the beneficiaries (spouse, children and descendants dependents) receive a pension. A Caisse d'allocations familiales (‘Caf’ or ‘CAF’, and in English: Family Allocations Office) is a private-sector body with departmental responsibility for paying family and social benefits to individuals (statutory benefits) under conditions laid down by law. Family benefits consist of: Family benefits are granted to any French or foreign person residing in France with

SECTION 50

#1732790838230

3484-431: The right to health insurance. It also introduced the principle of continuity of rights: a caisse can stop paying benefits only if another caisse takes over or if the insured person leaves the country. The second component, the creation of an additional free coverage on the behalf of national solidarity, is included in the management of care by health insurance. This reform affects 10% of the most disadvantaged people meeting

3551-563: The same time, tax avoidance was estimated at £1.7 billion (this does not include international tax arrangements that cannot be challenged under the UK law, including some forms of base erosion and profit shifting (BEPS)). In 2013, the Coalition government announced a crackdown on economic crime . It created a new criminal offence for aiding tax evasion and removed the requirement for tax investigation authorities to prove "intent to evade tax" to prosecute offenders. In 2015, Chancellor of

3618-610: The significant cost (albeit lower than that in the US). In 2018, Social security paid out €470 billion in social benefits, equivalent to 20% of France's GDP of €2,353 billion. Its main expenditure is on benefits for the sickness branch of the general scheme (€198.3 billion) and benefits for the old-age branch of the general scheme (€126.3 billion). Social security benefit fraud is relatively low (€2.3 billion), lower than social security contribution fraud by companies (€6.8 to €8.4 billion), and much lower than tax fraud (€80 to €100 billion). From

3685-422: The state system which refused to be merged into the general system when it was created. The main special regimes are: On the funding of Social Security Tax fraud Tax evasion is an illegal attempt to defeat the imposition of taxes by individuals, corporations , trusts , and others. Tax evasion often entails the deliberate misrepresentation of the taxpayer's affairs to the tax authorities to reduce

3752-422: The system to catch the tax evaders reduces associated risk. Most often, it is more economical to evade taxes, being caught and paying a fine as a consequence, than paying the accumulated tax burden over the years. Thus, evasion numbers should be even higher than they are, hence for many people there seem to be moral objective countering this practice. The level of evasion depends on a number of factors, including

3819-509: The tax gap because there are few ways for the government to know about skimming or non-reporting of income without mounting significant investigations. Shell companies have historically been utilized as vehicles for tax evasion and other illicit financial activities due to their opaque ownership structures. These entities, often devoid of substantial operations or assets, allow individuals to conceal their true identities and assets, thereby evading taxes and facilitating money laundering. Recognizing

3886-514: The tax havens of Bahamas and British Virgin Islands through an Emirati company, partially owned by an investment conglomerate, Dubai Holding and Axiom Limited, major shares of which were owned by the ruler. As per the leaked records, the Dubai ruler owned a massive number of upmarket and luxurious real estate across Europe via the cited offshore entities registered in tax havens. Additionally,

3953-454: The tax on items purchased in another jurisdiction. This means that consumers who purchase something in a lower-taxed or untaxed jurisdiction with the intention of avoiding VAT or sales tax in their home jurisdiction are technically breaking the law in most cases. This is especially prevalent in federal countries like the United States and Canada where sub-national jurisdictions charge varying rates of VAT or sales tax. In liberal democracies,

4020-404: The taxpayer's tax liability, and it includes dishonest tax reporting, declaring less income, profits or gains than the amounts actually earned, overstating deductions, bribing authorities and hiding money in secret locations. Tax evasion is an activity commonly associated with the informal economy . One measure of the extent of tax evasion (the "tax gap") is the amount of unreported income, which

4087-513: The top 0.01% of the wealth distribution... Taking tax evasion into account increases the rise in inequality seen in tax data since the 1970s markedly, highlighting the need to move beyond tax data to capture income and wealth at the top, even in countries where tax compliance is generally high. We also find that after reducing tax evasion—by using tax amnesties—tax evaders do not legally avoid taxes more. This result suggests that fighting tax evasion can be an effective way to collect more tax revenue from

SECTION 60

#1732790838230

4154-461: The ultra-wealthy." HMRC , the UK tax collection agency, estimated that in the tax year 2016–17, pure tax evasion (i.e. not including things like hidden economy or criminal activity) cost the government £5.3 billion. This compared to a wider tax gap (the difference between the amount of tax that should, in theory, be collected by HMRC, against what is actually collected) of £33 billion in the same year, an amount that represented 5.7% of liabilities. At

4221-492: The variables likely to affect non-compliance. Alternative specifications, however, yield conflicting results concerning both the signs and magnitudes of variables believed to affect tax evasion. Empirical work is required to resolve the theoretical ambiguities. Income tax evasion appears to be positively influenced by the tax rate , the unemployment rate , the level of income and dissatisfaction with government. The U.S. Tax Reform Act of 1986 appears to have reduced tax evasion in

4288-589: The vulnerabilities posed by such practices, the United States enacted the Corporate Transparency Act (CTA). The CTA mandates that companies disclose their beneficial owners to the Financial Crimes Enforcement Network (FinCEN) , aiming to dismantle the anonymity of shell corporations and increase transparency in corporate ownership. By requiring comprehensive reporting of beneficial ownership information (BOI),

4355-524: Was extended to cover illness, maternity, and death. On 30 April 1930, the law was again extended to apply to jobs in the agricultural sector. The bill was supported by Pierre Laval , who went on to serve as the French Prime Minister from 1942 to 1944, in the Vichy government . As a result, the French historian Fred Kupferman has called Laval "the father of social security" in France. During

4422-505: Was initiated. France also had, by the 1900s, the most extensive network of child welfare clinics and free or subsidized milk supplies in the world. The development of insurance companies, at the beginning of the 20th century, was also encouraged by legislation. (Note that insurance companies are profit driven, and mutuelles are cooperatives .) On 9 April 1898, legislators required that employers purchase insurance for indemnity payments to injured employees. Then, on 5 April 1928, insurance

4489-580: Was released in the name of Pandora Papers by the International Consortium of Investigative Journalists (ICIJ), exposing the secret offshore accounts of around 35 world leaders in tax havens to evade taxes. One of the many leaders to be exposed was the ruler of Dubai and prime minister of the United Arab Emirates, Sheikh Mohammed bin Rashid al-Maktoum . Sheikh Mohammed was identified as the shareholder of three firms that were registered in

#229770