THE RIGHT AMOUNT OF TAX (October 22, 2007)

I got a funny circular letter in today’s mail. It came from an office of Her Majesty’s Revenue and Customs in Nottingham. The letter opens with comforting words: “We want to help you pay the right amount of tax—neither too much, nor too little.” It proceeds by offering a lot of useful hints concerning the right amount of tax, but none of them seem to apply in my case. As I am a resident of Croatia, of which I am also a citizen, I have long received a letter from another office of Her Majesty’s Revenue and Customs—most likely in Nottingham, as well—saying that I am not liable to pay any tax in Britain, of which I am also a citizen. Why today’s letter, though? Am I doing anything wrong? Have I been targeted because of anything I have done or not done concerning my tax obligations? Although I still receive only my pensions from Britain and America, which are not taxable in Britain, am I not in breach of some new law that has escaped my attention? Having grown up in Yugoslavia of old, I quickly understood my anxiety, though. In my country of birth, as well as much of the former Soviet orbit, such letters were indeed used to flush out the usual suspects: “Some comrades believe that such and such is the case, but…” The only difference is that the old technique is now used in Britain, of all places. And so I decided to do nothing, but the old anxiety nonetheless lingers. I can feel it in my bones. Am I doing anything wrong? What is the right amount of tax, after all?