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Cashier 2 tax evasion, over- down- and off-accounting

by José Eduardo R Moretzsohn Friday, Nov. 18, 2005 at 8:55 PM
josedumoretzsohn@gmail.com

A simple analysis of the origins and operation of the Cashier 2 (tax evasion, over- down- and off-accounting) in capitalist countries

(1) Who circulates inside the Power of a capitalist country — politicians also — knows the Cashier 2 is always in force in such a ratio as high as 1:1 — for every of official currency there is another unofficial .

(2) Sales down-accounting and purchase over-accounting, non-accounting of part of manufactured and sold goods, interest earned by money brokers and accrual of broken funds, money strayed from public treasury, the fictional writing of balance statements and filling of tax paying forms, and direct evasion diminish businesses’ taxable income. And also when an activity is illegal itself, disabling all official accounting. The total remainings of such resource is the Cashier 2, a literal translation into English from Brazilian_Portuguese ‘Caixa 2’.

Corporations use part of Cashier 2 to bribe politicians and public officials, and to pay for unpublicizable servicing, in exchange of favored biddings and other service provisions for the Federal, State and City Administration, and of the maintenance of secrecy in certain actions.

(3) Important: All these amounts are available for any group that reaches Power in a country, state and city, either rightist or leftist… No need to ask, they are there, awaiting to be handed out.



(4) Rightist or leftist, every Government knows Cashier 2. Businessmen know Cashier 2. Political parties use it because, as parties that need to invest in election campaigns here and there, they work as corporations and as such they relate themselves with others.

No Government can fail to know Cashier 2, because previously, whenever it was opposition, it always denunciated and accused the ‘corruptions’ of the then current Administration.



(5) The civil society without access to Power does not know the Cashier 2, it has only a passive participation when it is paid its wages and other compensation, and reads in the media such shocking events as some tax evasion scandal, evasive bank accounts abroad, corrupting bribes to extorsioning Government assessors, former public-funds-sweeper Mayors, etc.

If a Government might recognize that (a) it knows about Cashier 2 and takes no correcting and punishing measure and (b) it uses it, will accuse itself of corruption, therefore shocking the society which will therefore execrate it and impeach it, and the Public Prosecutor will be forced to sue the guilty-pleaders.

(6) The Opposition, also surreptitiously, for the same reasons use the Cashier 2. For the same reasons it may not bring such use to the open.

Knowing that the simple civil society regards the Cashier 2 as a matter of ‘corruption, theft and crime’, and knowing the Situation cannot exempt itself from using it, because Cashier 2 is an institution, even a parallel power, the Opposition openly accuses the Situation and feigns to be shocked in the vain attempt to acquit itself. Such accusation obviously aims at incriminating the Government, at showing him like a criminal to the public opinion, and therefore at impeaching it.

(7) A poor political party with no intimacy with a country’s nobility and bourgeoisie must install a ‘bribe management system’ to account for (a) how much to ask for (b) how much it was paid (c) by whom (to reciprocate) (d) how much and to which party sections and individuals to allocate it, and (d) return on investment.

(8) The political Right also receives and distributes such bribes, however this, being itself the country’s very nobility and bourgeoisie, or its attorney, having with it strong bonds of intimacy and dependence, needs to engender no system. Agreements continue to develop in whispering chambers and living-rooms.

A high CBO [Chief Bribe Officer] of a rightwing party deals alone with his sponsor. Conversation addresses ‘confidence’, ‘perpetuation of an old friendship’, of ‘good old deeds’, ‘the expectation of reciprocation’. After being bribed, the CBO deposits the amount in some account preferably abroad and distributes it for himself and the sections and individuals of his party. Upon receiving their quotas through disguised ways, these individuals, aware of the social influence of their CBO, of the illegality of the operation and of the need of secrecy so as not to disclose the criminal action of their sponsor, do not ask who this is and who else received any money. Everything runs under the “blind justice”.

(9) Every Right, in view of any consistent and cohesive amount given to a Leftist government, becomes startled as it sees that amount change hands and flow away in the other direction, the Left, which is widely known in History as an oft investor in infrastructure and labor, therefore opposing the interests of capital, chiefly of speculative capital, therefore of those whom the Right represent in Parliament.

(10) Parliamentary Inquiry Committees only exist because Government officials, politicians, public officials, businessmen and corporation executives may not disclose their knowing the Cashier 2 and its origins, because Criminal Law disposes it as a crime liable even of imprisonment. This is a crime of ‘undue appropriation of public money’.

(11) Therefore, society is yet to understand and disclose this hidden face of its dominant caste; it is yet to understand that good, for that caste, is but the misleading interface between reality and the people of a country.

(12) Now and last, a deeper contradiction: Many people prefer not to pay all their due taxes because they allegedly will go bankrupt. This allegation, as far-fetched as it may appear, may make sense. After all, if the willful or unwillful bad management and the undue appropriation of public money is a general habit of governments, why channel taxes all into the hands of a closed, sectarian group instead of widely spreading them among employees, suppliers and the general public… In the next-to-last instance, why not to loosely waste it into the civil society, feeding store attendants, pantry attendants, restaurant waiters, street peddlers, dressmakers, tailors, seamsters, housemaids, electricians, plumbers, mechanics, movie-theater ushers, jack-of-all-traders, prostitutes and such? In the last instance, if the paid tax is to be stolen from the social purpose it is meant to meet and to be entreasured by any other person as common as himself, why not the taxpayer keep it to himself?

(13) While collectivities do not manage themselves their own resources, the Cashier 2 goes on swelling.

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