Congratulations! If you are reading this it means you survived April 15! Yet, there is often a lingering sense that no matter what you did, you might have done it wrong. Here are a few tax laws that scream THE GOVERNMENT GOT IT WRONG, but still… they were enacted. From the Cow-Fart Tax to from a former hostage greeted by tax authorities, this post highlights some of the most absurd real-world tax situations, where logic takes a backseat to compliance. If frustration is the price of civic duty, at least we are all paying it together.
Example 1: (The worst one in my opinion): From Iranian Captivity to French Bureaucracy: The Taxman was Waiting
A recent CNN article recounts the surreal intersections of tax law and kidnapping misfortune: the case of Benjamin Brière, a French national who, after enduring more than three years of imprisonment in Iran, returned home only to face an unexpected adversary – the French tax authority.
Brière was travelling through Iran alone in 2020 when he was detained by security forces and later accused of espionage and propaganda against the regime. He was detained in Iran for approximately 1,079 days before his release in 2023.
Upon returning to France, Brière was questioned by tax officials as to why he had failed to file income tax returns for four consecutive years. His explanation – that he had been incarcerated in a foreign prison with minimal to no contact with the outside world – was met with a response from France’s tax authority (DGFiP), “But why sir have you not payed your taxes? Even in prison you can do it.” “Not in Iran,” Brière retorted.
During his detention, Brière had no contact with his family during the first year; in the second year he was granted 15 minutes by phone every month. Filing tax returns on his behalf was, understandably, not top of mind for his family.
His difficulties extended beyond taxes. He temporarily lost healthcare coverage and encountered obstacles accessing unemployment benefits, leading to financial strain and reliance on family support for basic needs and psychological care.
The DGFiP ultimately posted an apology on X, resolved Briere’s situation by a tax official in another region, and put measures in place to prevent this situation from occurring again. Brière has since advocated for formal legal recognition and transitional protections for individuals in similar circumstances. In short, while death and taxes may be inevitable, one might reasonably argue that foreign captivity should, at minimum, qualify for an extension.
Example 2: United Kingdom: The “Illegal Income Is Still Taxable”
Under UK tax law, the position of HM Revenue and Customs is refreshingly consistent: income is taxable whether it comes from a lawful salary or an unlawful side hustle. In tax terms, money is money – even if the circumstances surrounding it came from drug trafficking at your dinner parties.
Proceeds from fraud, drug trafficking, and other criminal activity are still treated as taxable income in principle. The legal basis for this approach is found in the Income Tax (Trading and Other Income) Act 2005, which broadly taxes profits without pausing to ask whether those profits arose from a morally approved business model. Courts have reinforced this view, ensuring that illegality is not a valid tax planning strategy.
The most common types of illegal activities that get taxed are:
- Drug trafficking and distribution
- Investment fraud
- Ponzi schemes
- Identity theft
- Credit card or banking fraud (these generate “income” in the form of stolen or misappropriated funds, which tax authorities often treat as taxable receipts.)
- Illegal gambling operations
- Unlicensed prostitution enterprises (in jurisdictions where it remains illegal)
- Underground loansharking or extortion rackets
- Corruption and bribery (or kickbacks) are often treated as taxable income to the recipient
In practice, enforcement usually follows investigation or conviction, but the principle remains: “Please include receipts where possible.”
Example 3: The Ancient Roman “Urine Tax”
The famous “urine tax” dates back to ancient Rome under Emperor Vespasian, introduced around 70–72 AD as part of his efforts to refill the imperial treasury after a costly civil war. The tax was not on people directly using public toilets, but on the collection and sale of urine gathered from public urinals. At the time, urine was surprisingly valuable – it was used in tanning leather and cleaning clothes because of its ammonia content. So, Rome essentially monetized public bathroom recycling.
The idea was mocked, including by Vespasian’s own son, Titus. In response, Vespasian famously held up a coin and asked whether it smelled, giving rise to the phrase “money does not stink.”
The tax itself did not last forever in its original form and was eventually phased out during the early Roman Empire, around 96–98 AD.
In short: Rome managed to turn public bathrooms into a revenue stream – and defended it with one of history’s most iconic “it’s just business” arguments. Hey, if it brings in money, it is clean enough.
Example 4: The Cow Fart Tax (Sort Of)
In recent years, some governments (not to mention names but New Zealand and the U.S), have seriously floated the idea of taxing cow methane emissions. While not exactly a full-on “cow fart or burp tax,” the idea was to regulate greenhouse gases – including emissions from livestock.
New Zealand led the way with proposals under its climate laws to include livestock emissions in its climate pricing system. Naturally, the idea sparked a fair amount of pushback from farmers and the public, and the plan to directly price emissions at the farm level was eventually shelved around 2024 in favor of broader, less cow-focused climate funding approaches.
In the U.S., similar ideas have been discussed but never actually turned into law. Funny or not, it is a reminder of how taxes continue to evolve with science and climate change.
Example 5: In Texas, You Are Taxed Differently for Sliced Bagels
Under Texas sales tax rules, basic grocery items are generally exempt from tax, but prepared foods are taxable. This distinction, set out in the Texas Tax Code and administered by the Texas Comptroller of Public Accounts, has led to the famously quirky “bagel rule.”
A whole, unprepared bagel sold without modification is treated as a grocery item and is tax-exempt. However, once a shop slices it, toasts it, or adds toppings, it is reclassified as “prepared food” and becomes subject to sales tax. The rule is still in effect today and has never been repealed, despite occasional updates to administrative guidance. The result is a legal line so fine it can be drawn with a bread knife (sorry I had to).
Example 6: (My Personal Favorite): In New Mexico, the “You’ve Paid Enough” Senior Tax Waiver
In New Mexico, residents who reach the admirable age of 100 may qualify for a complete exemption from state income tax under the New Mexico Income Tax Act, as administered by the New Mexico Taxation and Revenue Department. This senior exemption was introduced in 2007 as part of broader retirement-friendly tax reforms and remains in effect today.
Eligible centenarians must be New Mexico residents for at least six months of the taxable year and must be residents on the final day of the tax year. However, the benefit is not universal – individuals claimed as dependents are excluded, and married taxpayers may face filing complexities if only one spouse meets the age requirement. The policy effectively recognizes that anyone who has reached 100 has likely contributed more than enough to the state’s tax base, offering a final bureaucratic “thank you for your service” in the form of permanent tax relief.
Parting Words: Although Natasha Chipiga and Fernando Orrego, Co-Founders of OC Estate and Elder Law, are not tax professionals, and do not give tax advice, they operate in a neighboring world where taxes are never far away – whether it involves estate tax exposure or filing your deceased loved one’s last income tax return, Natasha and Fernando are here to help. A proper consultation now can save you from expensive lessons later. Our knowledgeable estate attorneys speak English, Spanish, and Russian. Contact OC Estate and Elder Law at (954) 251-0332 or info@ocestatelawyers.com to get started. Our law firm conducts consultations over the phone or by Zoom.
TAX DISCLOSURE: Our clients are advised to obtain independent and competent tax advice regarding legal and business matters since legal and business transactions can give rise to tax consequences. Our law office and attorneys are not responsible for and have not agreed to render any tax advice regarding tax matters or preparation of tax returns or other filings, including, but not limited to, state and federal income and inheritance tax returns.
