> In Europe, states may be unhappy that work has been done without tax payment.
Well, it's a good thing we have (now domestic only) banking secrecy in Switzerland, for exactly these reasons. You only get into trouble when your livelihood doesn't make sense from what you earn and own - as long as you pay what's generally considered a 'fair' amount of tax, no-one will blink an eye and come after your documentation. And even if for some reason the government finds out, all that will happen is a penalty tax ranging from 20 to 300% of the missed revenue, usually 100%. There is an explicit difference between tax fraud (document forgery, which could mean jail) and tax evasion (when you 'forgot' to declare something, which leads to above penalty.
Overall, the system is set up so that the government can't abuse its asymmetric power over individuals, instead keeping it as close as possible to an 'employee' of the people.
Well, it's a good thing we have (now domestic only) banking secrecy in Switzerland, for exactly these reasons. You only get into trouble when your livelihood doesn't make sense from what you earn and own - as long as you pay what's generally considered a 'fair' amount of tax, no-one will blink an eye and come after your documentation. And even if for some reason the government finds out, all that will happen is a penalty tax ranging from 20 to 300% of the missed revenue, usually 100%. There is an explicit difference between tax fraud (document forgery, which could mean jail) and tax evasion (when you 'forgot' to declare something, which leads to above penalty.
Overall, the system is set up so that the government can't abuse its asymmetric power over individuals, instead keeping it as close as possible to an 'employee' of the people.