Interesting. From what I read of larkenrose's book, he couldn't find any law that specified income deriving from within the US by ordinary citizens to be taxable, and they couldn't find him guilty of wilfully not paying tax, but he went to jail anyway. Unfortunately no such loopholes seem to exist in the Australian Tax Laws, so people have to exploit it in other ways :p
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It isn’t what current legislation actually states, but how that legislation is interpreted by the courts, who will be the ones banging the gavel before they find you guilty. They know who butters their bread.