RMontgomery

ohai Wrote:
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> But... munis give you lower yield than taxable
> securities. So, supposedly, your tax savings are
> offset by the interest that you lose.


Are you saying the yield on muni's is lower than the after-tax yield on taxable bonds of comparable risk?

mdfb79

No, theoretically, after tax yield for both should be the same. However, as someone else said, there might be tax nuances that cause this relationship to deviate for different investors.

Swanand

This is all bollix so far. The tax loopholes are the ones that companies and wealthy families use. Creating a trust in an offshore location to pay 0% tax is the big one. I'm looking at you Caymans/BVI/Liechtenstein/Monaco and so on and so on and so on.

Case in hand: Philip Green owner of Top Shop in the UK and other retail outlets. Net worth ￡4bn

Lives in London. Owner of his companies: his wife. Wife lives in Monaco and pays ￡0 British tax. Get it now?

There was a great article on the Rausing family, creators of the tetrapak (what your milk comes out of). They set up a charity as the recipient of their companies income - the charity pays 0% on income. The beneficiaries of the charity? Billionaires Guy & Hans Rausing (a bit more complex than this but this is effectively it).

And companies set up their head office in Caymans etc. It is a copper plate on a door. For which they pay... you guessed it... 0% tax.

Is that making the point clearer?

HuskyGrad2010

When his wife files for divorce, life will really suck for Philip Green

troymo

Dude_CFA Wrote:
-------------------------------------------------------
> This is all bollix so far. The tax loopholes are
> the ones that companies and wealthy families use.
> Creating a trust in an offshore location to pay 0%
> tax is the big one. I'm looking at you
> Caymans/BVI/Liechtenstein/Monaco and so on and so
> on and so on.
>
> Case in hand: Philip Green owner of Top Shop in
> the UK and other retail outlets. Net worth ￡4bn
>
> Lives in London. Owner of his companies: his wife.
> Wife lives in Monaco and pays ￡0 British tax. Get
> it now?
>
> There was a great article on the Rausing family,
> creators of the tetrapak (what your milk comes out
> of). They set up a charity as the recipient of
> their companies income - the charity pays 0% on
> income. The beneficiaries of the charity?
> Billionaires Guy & Hans Rausing (a bit more
> complex than this but this is effectively it).
>
> And companies set up their head office in Caymans
> etc. It is a copper plate on a door. For which
> they pay... you guessed it... 0% tax.
>
> Is that making the point clearer?


Those are true loopholes. Excellent work.