Simple tips for the cheaters.
April 18th was this year’s deadline to file your state and federal taxes for 2015, but if you’re a dirty corporation or filthy rich and looking to cheat Uncle Sam, this video is for you. Alternatively, if you’re a hard-working American just trying to get by, this is how you’re being cheated. “Like death, you can’t avoid [taxes] unless, of course, you’re rich enough,” says our fictional host Astoria Davenport. According to the video produced by AJ+, it’s estimated that corporations and individuals are suspected of hiding $21 trillion in taxable income.
How do they do it? Large companies stash their cash in the Cayman Islands, Luxembourg, Switzerland, London and numerous other tax havens around the globe. You can also pay yourself a small salary and take the rest of your money as dividends which are taxed at a much lower rate than a salary. Or, if you’re looking to live tax-free from beyond the grave, you can do it using specialized trusts to avoid estate taxes.
Although you may be cutting a check to the IRS year, if you become wealthy in fiscal year 2016 now you know how to use existing tax laws to avoid paying your fair share.