The taxpayer’s deep pockets

Last weekend a former senior official with the tax-authorities told the nation how the environment the government has created makes it only too easy to cheat on taxes, hide real ownership and limit personal responsibility to the point where none is ever really assumed.

It is easy. The owners can bankrupt a company, register a new social security number and continue business as it was with a clean slate.

In the last two days several hundreds of workers have registred with the unemployment office.

Hafsteinn Valsson an employee of  R. Sigmundsson was informed a few days ago that his company had a new social security number and he would not be required in the new company.

This way the owners don’t have to pay his severance package but he has to apply for it from a government fund. Yet another way bankrupt management can move their liabilities to the taxpayers.

The same thing happened when Apple’s Icelandic reseller was moved to a new social security number in December. Those who were not offered a job in the new company on a significantly lower wage, had to apply to the government fund.

The taxpayer’s pockets are indeed deep.

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1 Response to “The taxpayer’s deep pockets”


  1. 1 Roy January 6, 2009 at 8:03 pm

    I spent a year in Ecuador many moons ago and I thought that you just coudn´t get any more corrupt than that. Surprise, surprise!


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