Comment by K0balt

It works well enough so that little people have a hard time dodging taxes. It creates some friction for criminals, but only in ludicrous concentrations of wealth like pablo Escobar managed.

Other than that it is largely ineffectual, it’s just not that hard to work around, for a percentage of course.

Its main function is to protect existing power structures from usurpment by potential up and comers. Oligarchs have no significant issues if they hire the right people, but small organizations can face cash crisis and limited maneuvering room.