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Here's an interesting truth that many of you might not know. When you're a large multinational company or a very high net worth individual, then taxes aren't re
by 0xy 6y ago
Here's an interesting truth that many of you might not know. When you're a large multinational company or a very high net worth individual, then taxes aren't really an objective calculation.
The tax code in most countries, despite being tens of thousands of pages of legalese, are extremely subjective. This subjective and loose language allow for innumerable loopholes and tax dodges.
If you're using these creative methods, the chances are that you'll get audited every single year by the IRS or local equivalent. Trump famously gets audited every year. Your tax lawyers & accountants will then negotiate a tax payment with the tax office. I used the word negotiate because there is no one true formula for tax owed. It doesn't exist, especially not for corporations.
When you add in 'creative' intellectual property ownership and royalty payments, then the tax office basically has no idea where money is flowing. This is why EU countries commonly lob these huge penalties. Facebook tries to pay X in tax, and the tax office says they should pay X2, and then after negotiation they pay X1.5.
- burtonator 6y ago> innumerable loopholes and tax dodges. ... a better way to look at these are backdoors explicitly added for billionaires and corporations to exploit. You and I have to pay taxes. Large corporations and billionaires do not (not effectively)
- refurb 6y agoGot an example of one of these “backdoors explicitly added for billionaires to exploit”?
- rayhendricks 6y agoI’m not an accountant or tax lawyer but here you go: https://www.investopedia.com/articles/investing/102515/carried-interest-loophole-americas-tax-code.asp https://www.investopedia.com/articles/investing/102515/carri... Carried interest is a share of a private equity or fund's profits that serve as compensation for fund managers. Because carried interest is considered a return on investment, it is taxed at a capital gains rate, and not an income rate. Critics argue that this is a tax loophole since portfolio managers get paid from that money, which is not taxed as income. Advocates of carried interest argue that it incentivizes the management of companies and funds to profitability.