How should you pay taxes as a Christian business owner? Like it was God’s money.
Even Jesus paid taxes. He even paid for Peter’s tax.
There’s a great story for this in Matthew 17: 24-27 when a group of tax collectors asked Peter if Jesus pays the taxes. “Of course he does,” Peter said without hesitation.
When Peter came into the house, Jesus told him to “… go to the lake and throw out your line. Take the first fish you catch; open its mouth and you will find a four-drachma coin. Take it and give it to them for my tax and yours.”
This is Jesus, our Lord and Savior, paying the taxes. It couldn’t be any clearer that we should pay taxes.
Luke 20:24 “Show me a coin. Whose image and name are on it?”, asked Jesus.
Why we should pay taxes.
Paul explained why in Romans 13:6-7 “This is also why you pay taxes, for the authorities are God’s servants, who give their full time to governing. Give to everyone what you owe them: If you owe taxes, pay taxes; if revenue, then revenue; if respect, then respect; if honor, then honor.”
Even if government officials do not believe in Jesus, they are still serving God’s purpose. The government does this by using taxes to govern. It is the government that ensures there is law and order so that Christians and everyone else can live in society.
We’ll what if it’s a bad government that allows abortion and same-sex marriage? Yeah, even those kinds of governments. The Roman Empire was very brutal but yet Paul wrote in Romans 13:1 “Let everyone be subject to the governing authorities, for there is no authority except that which God has established. The authorities that exist have been established by God.”
Respect and honor those in authority.
Not only that, Paul adds above that we should respect the government, tax collectors included.
Tax collectors were regulars in Jesus’ ministry. Remember that Matthew, one of the twelve disciples, was a tax collector.
So let’s try to avoid shaking our fists at the IRS, or throwing dagger glances at our local taxman.
Jesus was friends with tax collectors.
Jesus was a dinner guest at the house of one. “While Jesus was having dinner at Matthew’s house, many tax collectors and sinners came and ate with him and his disciples. When the Pharisees saw this, they asked his disciples, ‘Why does your teacher eat with tax collectors and sinners?’…I have not come to call the righteous, but sinners” Matthew 9:10-11.
Jesus calls Zaccheus, a tax collector.
In Luke 19:1-9 Jesus pointed at Zaccheus up a sycamore tree and invited himself to the house of the chief tax collector. The people were horrified that Jesus would hang out with a sinner. After witnessing the public pledge of Zaccheus to give half of his riches to the poor and pay back four times to anyone he has cheated, Jesus said salvation has come to Zaccheus.
So Jesus was not only a friend of sinners but even of tax collectors. He had at least two.
How much tax should we pay?
But just how much tax are we, Christain business owners, supposed to pay?
A group of tax collectors asked John the Baptist what they should do. John said, “Don’t collect any more than you are required to.” Applying this to ourselves, how much taxes are we supposed to pay? Answer: Don’t pay anything less than you are required to.
Let’s not make excuses: The board was in agreement. There was this loophole in the law. The accountant was doing this for his other clients. My friends do this all the time. Just ask yourself, is it something you’d have no qualms telling to God?
There are ways to avoid paying a highly unsustainable tax. These are legal and provided by the tax code. Then there are ways to evade taxes. These are illegal and prosecuted by the law.
Don’t fall into the temptation and trap of tax evasion.
There are two common ways to lessen taxes that people, even Christians, can easily abuse.
The first one is untrue or exaggerated deductions on a return. Don’t claim unsupported charitable deductions. Don’t inflate travel expenses. Don’t give money to your children or spouse and report them as wages.
The second one is reporting personal expenses as business expenses. A laptop or a car can be both for business and personal use. Be diligent in record-keeping and don’t be extravagant in your business expense claims.
There are other more shady complex ways to evade taxes but as Christian business owners, we know how to stay away from them.
You don’t want the IRS Criminal Investigation Division sniffing at your door.
It’s not about how much you can get away with
More than our tax forms, it’s our attitude that needs adjustment.
How many people would like to be in your shoes? You have your own company. People have jobs because of you. The community benefits from your business. There’s no one constantly looking over your shoulder.
And your business is all for the glory of God. You give your tithes and offering to your home church which is used to expand God’s Kingdom. While your taxes go into helping build a society where your church can thrive and spread the Gospel.
At the end of the day, your taxes are the same as your tithes and offering, it is a way of giving back to the Lord.
Final Thoughts
Think about this. Not once did Jesus criticize or spoke against the Roman authorities who would end up crucifying him. This is because the Romans were ultimately working for Jesus. The soldiers, Pharisees, and Pontius Pilate were instruments of Jesus in bringing salvation to mankind.
And also, these guys will stand trial in the most important court of all during judgment day. This time, Jesus will be the judge to pronounce sentences on every wicked act man has ever done.
Don’t give the world a reason to come after you because of your taxes. 1 Peter 3:17 “For it is better, if it is God’s will, to suffer for doing good than for doing evil.” Even if we Christians are already being persecuted for holding on to our faith.
So whatever tax law the government passes, your faith is shown by trusting and obeying God. Pay your taxes with thanksgiving in your heart to God.
