Therefore, as long as one is following the law and not engaging in illegal activities to avoid taxes, it is acceptable to utilize legal methods to reduce tax obligations. This is not considered a loophole in the ethical sense, but rather a responsible approach to managing one’s financial resources within the framework of the law.
It is important to remember that while there may be opportunities to minimize tax liabilities through legitimate means, ultimately, paying taxes is a civic duty and a necessary contribution to the functioning of society. By balancing financial responsibilities with ethical and religious values, individuals can fulfill their obligations while also making use of available tax incentives to retain resources for personal and communal needs.
Overall, the key is to act in accordance with the law, fulfill civic duties, and responsibly manage financial resources while upholding religious and ethical values. This approach allows individuals to navigate the complex tax system while maintaining integrity and contributing to the well-being of society as a whole.
Regenerate Therefore, if one is obligated to pay taxes, he is obligated to pay taxes; if he is not obligated to pay taxes, he is not obligated to pay taxes. There is certainly no concept of going lifnei mishuras hadin or beyond the letter or even the spirit of the law. One is obligated to follow what the law is.
My rebbe, Rabbi Henoch Leibowitz, ztâl, would often use this as an analogy: if you were standing in front of a judge and you explain to him what your logic was for taking this as a tax break, what would the judgeâs reaction be? If the judgeâs reaction would be âclever, we never thought of that, but it is within the letter of the law,â then absolutely it is proper and can be done. However, if the judge would make a face and say, âYou scoundrel, thatâs not what the law says and you are just devious,â then do not do it.
Point being, there is very exact letter of the law, and one is obligated to follow it. If there is a legal loophole which would stand up in court, and can be explained as fitting in the law, then 100% a person should take it, and anyone who doesnât is paying taxes out of his own pocket and has no guarantee he is going to get that money back; he is throwing money away. However, if that loophole is not legal, then it would constitute going well beyond what you should do; you should pay those taxes, and not paying would be wrong and improper.
â Rabbi Ben Zion Shafier is founder of The Shmuz and author of 10 Really Dumb Mistakes That Very Smart Couples Make (available at theshmuz.com).