Book Review: Rich Law, Poor Law: Different Responses to Tax and Supplementary Benefit Fraud
| Author | Brendan Pentony |
| Published date | 01 September 1990 |
| Date | 01 September 1990 |
| DOI | 10.1177/000486589002300305 |
| Subject Matter | Book Reviews |
206
BOOK
REVIEWS
(1990) 23 ANZT Crim
Rich Law,Poor Law: Different Responses to Tax
and
Supplementary Benefit Fraud,
Dee
Cook,
Open
University Press, Milton Keynes (1989) 193pp, $29.95 soft cover.
This book is based on the author's doctoral research into the treatment of "tax
fraudsters"
and
"supplementary benefit fraudsters" in England.
The
author spoke
to actors in each category and to regulatory officials, and in doing so gave the report
depth. She also helped the
reader
by refraining from a boring account of
methodology.
The title of the book is a shade tabloid. What the book clearly shows is that the
administration of the law in England in each of these areas is different. Whereas tax
evaders are dealt with respectfully and with concern for their rights, welfare
offenders are treated in exactly the opposite way and the book relates several stories
which exhibit a puritanical approach to welfare recipients.
The
"tax fraudster"
discussed in
the
book is the black economy operator, examples of whom also abound
in Australia. Tax fraud has a wider dimension in Australia, for example, the
paper
schemes of
the
1970s and the type of person discussed in the book is at the bottom
end of the market. Nobody can accurately say how much money is lost to the
Revenue from either type - the simply dishonest or the cleverly constructed
dishonest scheme.
It is salutary for Australian readers to recall that
our
recent history in relation to
"welfare fraud" is not impressive. Indeed, it was in the late 1970s, at a time when
payment of tax was optional,
that
Ministers of the Crown excoriated social benefit
recipients to such a degree
that
"dole
bludger" became an everyday term. There is
certainly nothing that Australians could feel smug about in reading this book. In
1978we had
the
spectacle of 181 people being arrested in dawn raids and charged
with conspiracy to defraud the Commonwealth.
The
social security conspiracy case
resulted in no convictions - due mainly to the charges being withdrawn - and the
establishment of a Royal Commission to determine the appropriate compensation
to be paid to former defendants. In more recent times, especially in Western
Australia, there has been a rash of cases resulting in the imprisonment of female
welfare recipients (see "Criminalisation of the Poor?" 15 Legal Service Bulletin 22).
Doctor Cook has painted apicture of an almost benign taxation administration
which seeks, in its own words,
"to
spare the taxpayers' feelings". On the other hand,
the benefit officials spare no pity for the welfare beneficiaries. She provided
examples of how the judicial system often mirrored the attitude of the officials.
Whether the Australian taxation ·system is as considerate for the feelings of
taxpayers is extremely doubtful.
The
drive for compliance has spawned attitudes and
laws which reflect a view that most Australians will cheat the tax system if they are
not sufficiently regulated. It appears
that
the Australian courts have a similar view to
that recorded in the book.
It is, perhaps, not too cynical to say that what the book discusses is what we as a
community already know - those who depend on the state for support are losers
who need to be kept in check by zealous officials and courts. They take money from
us in much the same way as unjust governments take hard earned cash from small
business.
The
book provides a useful model for a comparative study but, at the end of the
day, do the explanations for the different treatment of tax and welfare offenders add
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