Tax Loopholes often, first, about, example

ishfaque

Serious Post (it's a first)

What are some tax loopholes that these politicians rave about the rich exploiting? I hear this phrase so often but I have yet to hear a real example.

Is this politicalspeak to appease the voters?

troymo

Dude_CFA Wrote:
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> 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.

HuskyGrad2010

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

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?

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.

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?

hassan

Stocks & Blondes Wrote:
-------------------------------------------------------
> NakedPuts Wrote:
> --------------------------------------------------
> -----
> > Jerry: So, we're going to make the post office
> pay
> > for my new stereo now?
> > Kramer: It's a write-off for them.
> > Jerry: How is it a write-off?
> > Kramer: They just write it off.
> > Jerry: Write it off what?
> > Kramer: Jerry, all these big companies,
> they
> > write off everything.
> > Jerry: You don't even know what a write-off
> > is.
> > Kramer: Do you?
> > Jerry: No, I don't!
> > Kramer: But they do. And they're the ones
> > writing it off.
>
>
> +1 Absolute classic, its called mail fraud
> Seinfeld, all you'll have to do is pay a small
> fine....


NICE!!!!!!!!

LorrinCFA

NakedPuts Wrote:
-------------------------------------------------------
> Jerry: So, we're going to make the post office pay
> for my new stereo now?
> Kramer: It's a write-off for them.
> Jerry: How is it a write-off?
> Kramer: They just write it off.
> Jerry: Write it off what?
> Kramer: Jerry, all these big companies, they
> write off everything.
> Jerry: You don't even know what a write-off
> is.
> Kramer: Do you?
> Jerry: No, I don't!
> Kramer: But they do. And they're the ones
> writing it off.


+1 Absolute classic, its called mail fraud Seinfeld, all you'll have to do is pay a small fine....

b_sea93

Jerry: So, we're going to make the post office pay for my new stereo now?
Kramer: It's a write-off for them.
Jerry: How is it a write-off?
Kramer: They just write it off.
Jerry: Write it off what?
Kramer: Jerry, all these big companies, they write off everything.
Jerry: You don't even know what a write-off is.
Kramer: Do you?
Jerry: No, I don't!
Kramer: But they do. And they're the ones writing it off.

stockjaguar

higgmond Wrote:
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> Perhaps because I view "tax loophole" as having a
> negative connotation, I wouldn't categorize muni's
> as a tax loophole. The tax-exempt status for most
> muni's simply serves as a way for the federal
> government to help promote local development
> projects. If muni's weren't tax-exempt, towns and
> states would have to pay higher interest rates to
> attract buyers, effectively increasing the cost of
> every project and probably killing a lot of those
> projects.

+1.

15% Tax on Dividends? LTCG? Limited Partnerships? I dunno, I'm not rich, just some places to start your search.