Tax Avoidance facts

While investigating facts about Tax Avoidance And Tax Evasion and Tax Avoidance Uk, I found out little known, but curios details like:

Earl Tupper, inventor and founder of the Tupperware Company, sold his ownership interest, bought himself an island in Costa Rica, and gave up his U.S. citizenship to avoid taxes.

how tax avoidance works?

Facebook co-founder Eduardo Saverin renounced his U.S. citizenship to avoid paying $700 million in taxes.

What tax avoidance means?

In my opinion, it is useful to put together a list of the most interesting details from trusted sources that I've come across answering what is the difference between tax avoidance and tax evasion. Here are 50 of the best facts about Tax Avoidance Vs Tax Evasion and Tax Avoidance Meaning I managed to collect.

what's tax avoidance?

Jon Bon Jovi avoided property taxes by raising bees so that he could classify his mansion as a farm.
Many people who own high end and exotic cars register them in Montana to avoid sales taxes in their home state.
Facebook co-founder Eduardo Saverin, a native of Brazil, renounced his US citizenship to avoid paying $700 million in taxes
Google avoided $2 billion in taxes in 2012, by transferring royalty payments from its Irish and Dutch subsidiaries to a Bermuda unit, which was simply headquartered in a local law firm.
In 1696, William III introduced a tax which required those living in houses with more than 6 windows to pay a levy.To avoid this, house owners would brick up all windows except 6. As the bricked-up windows prevented rooms from receiving any sunlight, the tax was known as daylight robbery.
When the 1957 Lotus Seven was introduced, it came as a self-assembly kit to avoid car taxation of the day. As the tax rebate didn't apply to kits that came with an assembly manual, Lotus bundled theirs with a disassembly manual that was supposed to be followed in reverse.
Many famous British artists, including Rod Stewart and the Rolling Stones, left the UK in the early 70s to avoid an 83% tax on the top bracket of their income.
During the Great Depression, people used small "coins" worth fractions of a cent to avoid paying too much extra sales tax on small purchases due to rounding.
The English monarch, William III was so broke he levied a tax on properties with too many windows to increase his revenue. This caused property owners to brick up any excess windows to avoid paying the tax. This is the origin of the term "Daylight Robbery"
Philip Seymour Hoffman did not want his children to be "trust fund babies" so he did not create a trust. This resulted in a $12 million estate tax bill that he could have avoided if he made a trust fund.

tax avoidance facts — What is tax evasion and tax avoidance?

Tax Avoidance data charts

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tax avoidance fact data chart about The Panama Papers Leak — which exposed how hundreds to thous — The Panama Papers Leak — which exposed how hundreds to thousands of wealthy public figures, celebrities, elite billionaires and politicians avoided taxes and laundered money.

Why tax avoidance is unethical?

You can easily fact check why tax avoidance is legal by examining the linked well-known sources.

Apple controls 'the world's biggest hedge fund' called Braeburn Capital. It manages over 100 billion and helps the company avoid tax

Philip Seymour Hoffman didn't want his children to be "Trust Fund Kids" so he didn't make a trust for them, which resulted in a $12 million tax bill that he could have avoided if he made a trust and exercised proper estate planning. - source

In the 19th century, Canada built disposable ships to avoid paying outlandish British Timber taxes. These were barely seaworthy crafts, assembled from loose timber, allowing them to be easily dismantled upon arrival in British ports and sold piece by piece to shipbuilders. - source

Companies such as Apple and Google use a tax avoidance scheme called the "Double Irish arrangement" to decrease the amount of tax they have to pay. Companies that have used this scheme prior to 2015 will be able to use this strategy until 2020.

Receipts in Taiwan are also tickets for a lottery run by the government. This system was created in the 1950's to prevent sale tax avoiding. - source

When does tax avoidance result in tax uncertainty?

Converse sneakers have fuzzy soles so they can be classified the same as slippers to avoid paying higher import tax

How tax avoidance affects the economy?

Eduardo Saverin, Fb cofounder, started an online portal for charity in 2010, renounced his US citizenship to avoid $700mil in taxes in 2011.

Up until 1796 in the UK there was a tax for working dogs with tails causing many dogs to have their tails docked to avoid the tax

The first winner of survivor ended up going to prison for 4 years for not reporting his winnings to the IRS to avoid taxes

The taxes were called "duties" in an attempt to avoid angering Americans, who had already been so angered by the Stamp Act that the British repealed the Act after only one year.

There used to be a mining town in California known as Rough and Ready. The town "seceded" from the Union in 1850 in order to avoid mining taxes and later voted themselves back into the Union the year after.

When is tax avoidance illegal?

In order to avoid paying high property taxes, the residents of Ulysses, Kansas moved their town into a new area two and a half miles away. The courthouse, post office, a hotel, and every other building were moved to the new location in 1909.

ABBA were wearing hotpants, sequined jumpsuits and other costumes to avoid tax. At the time Swedish laws allowed cost of outfits to be deducted against tax.

British Overseas Territories and Crown Dependencies dominate the list of places allowing multinationals to avoid paying tax on their profits. In total, this makes the UK responsible for about one third of global tax avoidance risk - over four times more than next contributor, the Netherlands.

How do film tax avoidance schemes work?

Digital camera and DSLRs have a 30 minute recording limit to avoid the EU tax on high end video cameras

Ford imports the Transit Connect to America with rear windows, seats, and belts and then promptly removes them upon arrival to avoid a 25 percent light truck tax

Ford imports the Transit Connect to America as a passenger vehicle, then pulls the rear seats out and recycles them, all to avoid a tariff called the Chicken Tax

No one (other than the owners) really know who owns IKEA. Parts are owned by a charitable foundation, other parts are owned by a Dutch company which is owned by a Luxembourgish company which owned by a Lichtensteiner company...all this, probably to avoid taxes.

Intellectual property has become a core tool in corporate tax planning and tax avoidance, which the OECD estimates costs $100–240 billion in lost annual tax revenues

The 'Great Republic of Rough and Ready,' a Californian mining town that seceded in April 1850 to avoid paying federal mining taxes. They rejoined the Californian territory that 4th of July when Nevada City saloons refused to serve foreigners.

A billionaire hedge fund manager had to go to court to prove to New York City that he didn't spend the night in the city on July 23, 2000 to avoid a $27 million tax bill

In 1696, the UK passed a window tax, that lead people to brick up their windows, to avoid paying the tax.

The United States tax gap is 600 billion dollars (taxes not collected due to tax avoidance) the equivalent to the entire military budget or 20% of total revenue.

In a misguided attempt to avoid taxes, Proctor & Gamble themselves successfully argued that Pringles do not contain enough potato to actually be labeled as "potato crisps"

In 1893 the Supreme Court decided that while tomatoes are indeed botanically defined as fruit, consumers think of tomatoes as vegetables, and that is how they should be legally defined in a case where the plaintiff tried to argue otherwise to avoid taxes on the importation of vegetables

About the Republic of Rough and Ready - a town that seceded from the US in 1850 to avoid having to prohibit alcohol and pay taxes on mining. Three months later they rejoined after being unable to purchase alcohol to celebrate the 4th of July as they were now considered foreigners.

After his son died of a drug overdose, a Berkeley man hid the body behind a false wall for four years, in an apartment building the father had deeded to the son to avoid tax consequences.

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