When it comes to tax law, governments have two main arrows in
their quiver: governments require taxpayers to pay
taxes that are assessed on the basis of income or other factors
(such as specific transactions, use of certain resources, etc.) and
also require that taxpayers file a number of forms
and documents. The primary purpose of these documents is, at least
theoretically, to ensure that a taxpayer is complying with all
payment obligations, not to independently generate revenue.
But sometimes the reporting horse comes unhitched from the
revenue cart. Consider the recent US court proceedings and jury
verdict against Carl R. Zwerner, a resident of Coral Gables,
Florida (you can read the US Department of Justice's press
release on the decision here). Mr. Zwerner had maintained a secret bank
account in Switzerland since the 1960s. He maintained the account
in the name of two different foundations (i.e. not in his name and
arguably in a manner designed to mask his access
