Does your employer have "Dead Peasants" Insurance

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It also isn't as simple as a business buying insurance and getting a deduction. Many kinds of life insurance are NOT deductible by a corporation. The tax scheme they are talking about is quite a bit more layered.

In the Russian Empire before the emancipation of the serfs in 1861, landowners were entitled to own serfs to farm their land. Serfs were for most purposes considered the property of the landowner, and could be bought, sold, or mortgaged against, as any other chattel. To count serfs (and people in general), the measure word "soul" was used: e.g., "six souls of serfs". The plot of the novel relies on "dead souls" (i.e., "dead serfs") which are still accounted for in property registers....

The story follows the exploits of Chichikov, a gentleman of middling social class and position. Chichikov arrives in a small town and quickly tries to make a good name for himself by impressing the many petty officials of the town. Despite his limited funds, he spends extravagantly on the premise that a great show of wealth and power at the start will gain him the connections he needs to live easily in the future. He also hopes to befriend the town so that he can more easily carry out his bizarre and mysterious plan to acquire "dead souls."

The government would tax the landowners on a regular basis, with the assessment based on how many serfs (or "souls") the landowner had on their records at the time of the collection. These records were determined by census, but censuses in this period were infrequent, far more so than the tax collection, so landowners would often find themselves in the position of paying taxes on serfs that were no longer living, yet were registered on the census to them, thus they were paying on "dead souls." It is these dead souls, manifested as property, that Chichikov seeks to purchase from people in the villages he visits; he merely tells the prospective sellers that he has a use for them, and that the sellers would be better off anyway, since selling them would relieve the present owners of a needless tax burden.

Chichikov's macabre mission to acquire "dead souls" is actually just another complicated scheme to inflate his social standing (essentially a 19th century Russian version of the ever popular "get rich quick" scheme). He hopes to collect the legal ownership rights to dead serfs as a way of inflating his apparent wealth and power. Once he acquires enough dead souls, he will retire to a large farm and take out an enormous loan against them, finally acquiring the great wealth he desires.

Setting off for the surrounding estates, Chichikov at first assumes that the ignorant provincials will be more than eager to give their dead souls up in exchange for a token payment. The task of collecting the rights to dead people proves difficult, however, due to the persistent greed, suspicion, and general distrust of the landowners. He still manages to acquire some 400 souls, and returns to the town to have the transactions recorded legally.

Back in the town, Chichikov continues to be treated like a prince amongst the petty officials, and a celebration is thrown in honour of his purchases. Very suddenly however, rumours flare up that the serfs he bought are all dead, and that he was planning on eloping with the Governor's daughter. In the confusion that ensues, the backwardness of the irrational, gossip-hungry townspeople is most delicately conveyed. Absurd suggestions come to light, such as the possibility that Chichikov is Napoleon in disguise or the notorious and retired 'Captain Kopeikin,' who had lost an arm and a leg during a war. The now disgraced traveller is immediately ostracized from the company he had been enjoying and has no choice but to flee the town in disgrace.