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I commend you for your writing. I think you should make this a regular book but of course it would need to be longer. I think you could get published if you found the right area to put it in. I think you are that good. As far as my own opinion on the story..it was great..but I think they were all too harsh with her. I have had a Master and some Doms and I would never be with one that humiliated me in anyway or that would hurt me with that much pain. One does not have to go to those extremes to have someone be submissive....plus she was black mailed into it....that would suck!!! But I know its just a story and a damn good one! Congrats! Thank you for sharing.
I can't speak for the author, but I can guess why John was never punished. The answer is: he doesn't need to be. What would Kyle get from punishing John for hiding income? From the very beginning we understand that Kyle is an extremely wealthy man. Money is a non-issue. Kyle is presented as a straight male, so he has no desire to "own" John.
Kyle is not doing this to make people pay for their crimes. Kyle does this to train women because that's what he loves to do. He does it through blackmail because he is an extreme sadist that gets off on humiliating women against their will. Once a woman is fully trained and he deems them as a properly trained slave, his interest is likely lost. What he commands his slaves to do is no longer humiliating because they want to do it. So he moves on to the next project.
Eventually Kyle gives back Rebecca to John. That was probably because the story needed a "happy" ending. It's obvious Kyle knew John was going to follow Rebecca to his place. Maybe he liked John. Maybe that was his twisted way of giving back to the world. Or maybe he just didn't want some guy showing up on his doorstep with a shotgun.
Either way, Kyle was ready to move on or maybe even take John on as a protege. Kyle already articulated his craft as a "unique form of tutelage."
is why she and Kyle never told John about the IRS--that was such a big part of the earlier chapters but dropped off entirely when John got home--and he was complicit in that. But he is never told the ostensible reason the punishment started. Otherwise, a well written tale.