The newspapers recently reported on a dentist who faces 27 months in jail for failing to file tax returns. His failure was apparently due to the belief that filing tax returns and paying tax is voluntary. First, is the desire to avoid tax, and a willingness to believe anything that helps pay less tax. Second, and more insidious, is the apparent inaction of tax authorities. Being large bureaucracies, the tax services of the world do not move quickly.
Field agents do what they are told, and what they are trained to do.
When an illegal tax scheme comes along it takes a considerable amount of time before authorities mobilize to do anything about it. The major steps involved in addressing a new tax issue include Recognize the problem, Figure out the correct tax rules, Decide to do something about the problem, Get a budget authorized, Train and deploy personnel, Select companies or individuals to audit, Conduct audits, Assess tax, Combat taxpayer legal defenses, and Collect tax. Most of these activities take place secretly. The public is unaware of the activities of the tax authorities until far into the process. Both of these assumptions may be incorrect.