Tax Havens Explained

[@keshavb3128]

If I had a business, I would love tax havens.

[@swizhgg8164]

I'm going to guess you have never had a job in your life?

[@keshavb3128]

@@swizhgg8164 I don't wanna work for anyone. I see working in a job pretty boring.

[@swizhgg8164]

@@keshavb3128 Funnily enough kid, most people don't want to work for anyone either. Unfortunately most people do work for someone and those are the people that pay the majority of the tax meanwhile people who make billions don't pay a penny in tax.

[@izgreeny1313]

@@swizhgg8164 Funnily enough kid, last year we had a record numbers of adults paying no income tax, an analysis by the Institute for Fiscal Studies (IFS) shows, and HMRC tax records reveals 43 per cent of adults did not pay any income tax, as the burden increasingly falls on the top one per cent of earners who payed 27 per cent of all income tax... you can bet with all that's going on its much higher at the moment. This video is very misleading. Do you really think the government is going to give up all that tax for nothing.

[@izgreeny1313]

@@jomsies but unethically stealing someone else's money to pay for all of that is fine and it is stealing, the moment you force someone else to pay a higher % is the moment it becomes stealing. Everyone should pay the same % everyone gets the same benefits. Now that would be paying taxes fairly. The idea of "oh they have more money so they will be fine" doesn't make it right to steal from them.

[@Grim_Beard]

5:37 "Leaving the EU would give the UK more flexibility to become a tax haven if it wanted to." Could you explain this? After all, three of the six countries listed as major tax havens at 2:19 in this video are EU member states. Clearly EU law isn't stopping member states from being tax havens, so how would leaving the EU enable the UK to become one?

[@ronnieince4568]

Jersey Isle if Man Guernsey Monaco etc are not in the EU .

[@caelan8819]

Grimbeard, only Ireland and the Netherlands are in the EU.

[@hassan123456killa]

After brexit there will be another crash in the economy and the UK will be forced to become a tax haven.

[@ronnieince4568]

@@hassan123456killa well that will make us very rich as we will have access to huge amounts of capital fir banks to lend .

[@hassan123456killa]

@@ronnieince4568 lol loans on top of loans. What I find amazing is how they preach about tax evasion being so bad and paying less income tax is bad. But yet payday loans are still completely legal with interest rates upwards of 50% ?

[@tomdean1999]

When you’re done with Brexit - more videos on topics like this!!

[@Torchman-]

Tom Dean Brexit will never be done!

[@WallStreetPirate]

@@Torchman- rofl.... hahahaha...

[@liamscott555]

How do we stop tax havens? Person 1:"Chage the tax laws" Person 2: "close the loops" Person 3: "lower taxis and allow for increased pool of businesses to exist thus bringing in more money" Person 3 is thrown out window.....

[@kb4903]

They would still avoid it.

[@fe6767]

Person 3 doesn't understand the difference between the country that the business operates in versus the country that the same business claims to be "owned" in.

[@joeschmo7145]

The American dream is to not be taxed at all. That's it.

[@Torchman-]

This was a very well explained video. Thank you very much for clearly sifting through how tax is avoided.

[@MaruskaStarshaya]

My country doesn't deserve my taxes because it does nothing to help or stimulate my business and my activity.

[@robertrussell2202]

Fair

[@FixNewsPlease]

Fuck you. Piece of shit.

[@fazedank4537]

@@FixNewsPlease I'm guessing you're 14

[@FixNewsPlease]

@@fazedank4537 You're good!

[@bgraves7925]

@@robertrussell2202 how is that fair I would assume his country keeps him and his business safe

[@starlord872]

It is easy to do here in Canada. Companies can be registered under a person ( trustee ) with a First Nation Status, " operating " that same company as the "CEO" from an Indian Reservation and the company's income become 100% tax exempt. Although the company cannot be Incorporated to do so.

[@JohnSmith-mr8wc]

SNOW JOB

[@3la6789]

Nice music choice but make it quiet and evenly spread throughout video maybe. So glad you are able to make the videos on a daily basis now!

[@omarmesbah6620]

I’m so glad you no longer use that irrelevant background music

[@mattjohnson7198]

I haven't been annoyed by tax havens. I plan on using them one day as long as governments keep wasting my money on unjust war and failed social programs.

[@thorskjelver8564]

My how the mighty have fallen. It sees utterly insane for the country that once ran the world would stoop so low to become a tax haven.

[@AnArchyRulzz]

What you talking about? British territories have always served as tax havens. Hell the term offshoring came from people putting their money in the channel islands.

[@Ben-et8wh]

what are you going on about man? do you know how long British places have been tax havens? and it's not "stooping low" the taxes that are paid in places like NA are just ridiculously high

[@cliffsousa4184]

Well it always has been an inborn trait of the brits to play with other people's money legally and illegally, more so the latter.

[@michaelreilly3513]

@@cliffsousa4184 Yes, they are clever.

[@1967-l7h]

@@cliffsousa4184 does it even matter? Id rather have brits toying with my money then losing a huge cut of my income to the IRS which has access to the Federal Mint which will print more money and make my money more useless anyways. I probably will throw my money to a place in Andorra or the IoM anyways.

[@murrowboy]

How do the "Trust" work? I suppose since all your assets are under their name, this isn't exactly a family member or a best friend living in the Tax country but some kind of "Trust Bank"? How does that work? What makes them not just take all your money if everything is under their name?

[@thed542]

Trust essentially boils down to having someone else to manage your property (and rights/titles) to the benefit of another person. It makes more sense after taking account of the context of its inception. During Middle Age, you have a lot of landowners leaving the boundary of their estate for Crusade or other far-flung destinations, you'd want your family to be taken care of by people whom you -trust- if you don't return, but you can't expect them to pay for everything for your family no matter how chummy you are. So you create an institution outside the legal framework exactly for this purpose. You want a third party to benefit from the assets that you own, under a supervision of a person (trustee) whom you name. You transfer your rights (titles... earning etc) from your property that you own, under the supervision of the trustee. That's essentially it. The transfer makes the trust "own" the property (and rights); due to this transfer, the trust owns it, not you. The trustee(s) would have all the power, the beneficiaries can't do anything (unless if the trustee(s) does something which a reasonable person would not do). In answering your question, "what stops them from taking the money", because every asset which is in a trust is the trust's, not theirs. The trustees can be forced to pay for everything they took or every rash loss they caused. Only recently do the beneficiaries have the power to remove and change their trustees but it can only be done in a unanimous vote among the beneficiaries.

[@connorschultz380]

@@thed542 of course, one should aways remember how that turned out for the Disney family....

[@mkoasleep9179]

Thanks man was about to keep my trading headquarters in the uk but now it’s going to the Cayman island thanks bro you the best 👌🏾

[@_inthemoney]

You should have started the video with the statement that "it's not illegal". It's not illegal. It's not illegal. It's not illegal. Placing your money in countries that have lower tax is not illegal.

[@R3yr3yproductions]

It sure aint a good thing though

[@jordijimenez2634]

@@R3yr3yproductions for you

[@jonpaul4935]

Dont want a country to move it's headquarters to avoid tax...lower your tax!

[@swizhgg8164]

Exactly, lets stop the public sector from getting any money it's not like they need it anyway!

[@jonpaul4935]

@@swizhgg8164 If they need funds they can raise them by other means, i'm sure their are plenty of people who care enough to donate to it...That way the government stops spending money on stuff the public couldn't give two F***s about.

[@swizhgg8164]

@@jonpaul4935 Exactly like who gave a fuck about the disabled and police. Please name some alternatives.

[@baha3alshamari152]

​@@swizhgg8164 You do realize that 1/3 of the money ends up in the pockets of politicians 😂😂

[@AdityaKashi]

You seem to have conveniently left out the cozy relationship between the City of London and the British island possessions which are tax havens.

[@RichGonzalezVerona]

Imagine how much more money countries with high taxes bring in if they reduce taxes and cut bureaucracy.

[@pkw2134]

Useful video but this leaves the impression that major governments don't have anti-avoidance measures in place. Perhaps it might be informative to make a video analysing and explaining the UK's approach to this, i.e. rules on controlled foreign corporations, WHT on licence/royalty payments, the disclosure regime for tax avoidance schemes, Ramsay principle etc.

[@NikiGalabov]

I don't blame people who do this. I'd do the same if I'm rich (I'm poor, for now) I hate taxes.

[@MrFrancois0028]

This is definitely missing a few things. A lot of what you said relates more to transfer pricing than to being a tax haven. A consolidated set of group financial statements would be presented in the tax rate of the headquarter company, for sure. But the subsidiaries / divisions would be paying taxes on their receipts from a source within the country they earned them in. For example, a British division would pay taxes in Britain on British earned profits. additionally, trusts get smashed with deeming provisions back to the donor, donations taxes and other protective provisions. They are also taxed at an exorbitant rate, so leaving passive income in a trust can actually be pretty expensive. Bottom line: you’re not gonna beat companies at this. Governments should lower their tax rates to incentivize companies moving offices there.

[@amrahmed7856]

How about just end tax havens?

[@taj-sid]

@@amrahmed7856 You can't stop other countries from having lower or different taxes to your home country. Its not their fault that your country charges high taxes or has taxes on things that they don't. For example to North Korea, where citizen are not allowed to legally have private enterprise, every country in the world is a Tax haven. The only way to really end tax havens is to undemocratically force all countries to charge taxes whether they like it or not.

[@misererenobis8900]

Well made and informative, thank you.

[@dominicandreas2109]

Depending on one stream of income had never made any millionaire and earning check don't put you on forbes

[@MrAbcdesh]

and these people still have the audacity to clap for the NHS

[@simray7602]

The rich already knew it , the poor doesn't need to know it , only me ,the future rich ,would want to know it

[@nwabuezeozuzu6370]

sim ray I wish I knew. I'm struggling with knowledge. 😢

[@c5vette739]

For US companies with subsidiaries in tax havens they are required to pay US income tax under the GILTI tax regime. Loophole significantly closed.

[@keepitraw1]

switzerland does not have a 8,5% tax rate, additionally you have to add cantonal taxes, which are different in every canton.

[@emmajohnson7364]

Great video. My father used to work for Seagate, a big hard drive company. They were founded in the US and have a huge campus in California where all the executives work and do business, but their headquarters is in Ireland (either Ireland or Singapore, they move it a lot) just to avoid taxes. It's stupid they can get away with this

[@ronnieince4568]

Emma Johnson -Seagate has a large manufacturing plant in Ireland and has had it for years .

[@travelwithsounak]

Emma Johnson you are hot btw.. wish you are single

[@todoldtrafford]

It’s their choice.

[@fartexpertable]

Or maybe just not tax an absurd amount of money to companies so they can create jobs.

[@dougradtke]

They don’t get away with it anymore under TCJA with GILTI and BEAT

[@rob28803]

You need to fix the opening line: “Over recent years, people and companies have become increasingly annoyed at tiered, excessive taxation and have sought a fairer deal elsewhere.”

[@ryan.1990]

Amen

[@economicsinaction]

There's the law and there's the spirit of the law

[@Dremaus1911]

I dont really trust the government to actually spend the money very well :/ (cough cough massive debt)

[@Barc112]

This theme song bangs, too

[@TheAlexN1305]

I still don't understand what do Tax Havens get out of being Tax Havens? Specifically those that charge 0%. Companies come rent a basement room and label it to be legally their headquaters that owns all the patents and such. How does this benefit Tax Haven country? The video didn't really give any satisfying answers. It mentioned that usually Tax Havens are poor countries with no goods, services and industries aside from tourism -- Island nations with little to no resourses. Is that why they choose to do this? Out of desperation? Cause they can't make money from anything else and this is most miserable last resort attempt at making money and providing employement to it's citizens?

[@matthewhemmings2464]

There usually is a registration fees to open a branch in the country, and a yearly fee to renew. In many of these tax havens there are nearly 2, 3, 4 companies for 1 resident in the nation or even more. So put a registration fee of 50 000$ a year (which is nothing compared to the amount of taxes these company spare in their home country) and your government effectively earned 50 000-100 000 per citizen doing nothing more than ranting a mail box!

[@ANUBASS]

the guy from harold and kumar recently did a video on this and money laundering in cyprus, called the giant beast that is the global economy on amazon prime

[@baha3alshamari152]

1- they have small population so they need less money 2- registration fees 3- renting an office requires employing at least 4 people and paying their salaries every month so new job opportunities without the government spending any money

[@CMCugetme]

Please may someone explain why don't most businesses register in tax havens, like if I set up a florists in the UK why don't I register it in Cayman? Is it because you actually need a physical branch there which would of course be more expensive than it's worth for my tiny florist business?

[@marcobagut]

But the law says you have to pay taxes where you generate the profit, so how do they go past that?

[@baha3alshamari152]

The profits go to the bank accounts and the accounts are registered in tax havens

[@robmaule4025]

The City of London is already a tax haven... and it's in the UK so this video is slightly out of date

[@CCCZMC]

how?

[@indranildutta2961]

@@CCCZMC it's true i can give you examples

[@gre6821]

Companies in tax havens who are now in trouble should not get a bail out by the Government. Simple! We in the Netherlands are a tax haven so you can make up the list easy.

[@OskarP-gc9ek]

You have a marked misunderstanding of tax havens. You have described offshore jurisdictions, which must comply with the relevant international anti-ML and anti-TF measures and are monitored by the Offshore Group of Banking Supervisors. Tax havens are regions that offer preferential tax treatment to non-residents and have major deficiencies in compliance with FATF recommendations on bank secrecy and beneficial ownership practices. The former facilitates tax avoidance and the latter tax evasion.

[@nomadkickbox4049]

Great video on Tax Havens to undemonized the subject!

[@timojumppanen4142]

Good subject to tackle. Thanks

[@stephenconway2468]

One thing to note that a lot of effort on cooperation on International Tax was blocked by developed countries, led by the United States and the United Kingdom. So when people complain about this, note who is letting it happen in reality. So while the US complains about Apple for example, the US actively worked against efforts to make such tactics more difficult. Like it or not, but most tax havens operate legally. It is the system that should change.

[@moa3008]

Perhaps the governments of the high taxation countries should have a tax system similar to Mauritius; and they wouldn’t be loosing badly need tax revenues!

[@ArchieWard]

Love the vids fellas, but it's Cayman, not Caymen.

[@crossroads670]

It’s spelled Cayman not Caymen…

[@gc9362]

who cares tf

[@NigelFurtado]

1:57 - It's "Cayman" islands

[@maddiemover5894]

Clearly explained - thanks!

[@kdhlkjhdlk]

Tax Havens are why the UK is leaving the EU, just ask tax evader, Jacob Rees-Mogg

[@futurewolffilms607]

They forget the part where irresponsible government officials overspend and raise their taxes abusively high. Like a bad romance, why would you stay?

[@skotnica93]

So I guess California is the abusive one that openly cheats and gets away with it? xD

[@futurewolffilms607]

@@skotnica93 The government of California ignores any law that does not allow it to steal. THere's far more fraud run by the state than by tax haven users.

[@skotnica93]

@@futurewolffilms607 Which is the premise of my joke? Thanks for explaining.

[@jerryormston3916]

Stunning, realy good job.

[@markfernando8438]

It's a legal form of money laundering.

[@todoldtrafford]

Nope

[@ravindertalwar553]

Exciting and I would like to explore for research purposes only

[@amamax2827]

Really good video thanks boss

[@thomasboyd7943]

Tax Havens are used by Billionaires to Avoid Tax. That will never change. Mrs Thatcher switched VAT Double from 8% and 12% to single rate of 15% VAT rate cut Top Rate to 40% incomes of £50000. From 1979 to 1997 the Conservative party raised tax by £350 billions on the British people Mr Blair said this so he honest on that. Indirect Taxation help uk government get billions. For uk public spending from 1979 to 1997 under Mrs Thatcher conservative British government.

[@rubengdful]

Tax heavens are a gift from the gods.

[@brexitisasbrexitdoes7659]

No mention of US state tax havens like Delaware where 50% of US corporations are incorporated.

[@TheKhilafattv]

Nicely explaned 👍

[@pradeeprawat4732]

Wonderful explain so thanks sir

[@andrewappleyard796]

So if I have a ltd company is the uk and my father lives in the isle of man , where copration tax is 0% I could give him all the profits and pay no tax ?

[@papapeethehunks]

Is this the reason why Britain is still keeping territories to this day? What's the point of the UN Trusteeship Council if it does no action to help territories become full fledged sovereign nation-states? 🤷‍♂️

[@tommyhartman]

That a Global company keeps money in the markets that they made the sale in isn't really Tax Avoidance. Investing money in the markets that they do business in isn't the same hiding as money in Belize.

[@henriquef5421]

Taxation is theft! Instead of fighting for everyone to be robbed equally, fight to stop stealing all together.

[@maarten9272]

I understand your believes but without taxes there would be no roads, no healthcare, no police/military, no streetlights, etc, etc. Society would either turn into a narcostate or a pre industrial civilization.

[@henriquef5421]

@@maarten9272 Do you know that we can pay for these services directly without no middle man, right? Governance is a service like any other.

[@maarten9272]

@@henriquef5421 Yes and without general oversight there is no one to determine what things should cost. The idea that the market determines the price is at best a half truth. Have you seen what per capita healthcare spending is in the US compared to my country (the Netherlands)? We pay three times less for objectively better service.

[@maarten9272]

@@henriquef5421 On paper anarchism is the best economic system but in reality the big corporations and the 1% will always have the upper hand compared to the consumer. The best a consumer might accomplish is force a company to make minor/symbolic concessions if a truely gigantic number of people complain about a certain issue (which happens quite rarely).

[@henriquef5421]

@@maarten9272 It is the contrary. It is easier to corporations to act on central entities like governments them to compete in a free market. Take a look how many companies could achieve monopolies and oligopolies without government policies helping them and the role of central banks in all of these, they literally give money to these cronies through quantitative easing.

[@TheChachona]

Do you think countries can allow that?

[@Chrishagen]

Why can Ireland and The Netherlands become tax havens IN the EU (not to mention Luxembourg) while the UK has to leave to do likewise?

[@thesunshine5289]

Your videos are useful. Please talk slowly and reduce speed of slides change over.

[@richardjbarlow]

The videos are propaganda. How do you think they can afford this with only 13k subscribers?

[@PragmaticAntithesis]

You can reduce the speed of videos be going into KZbin's settings. Set the speed to 0.75!

[@geniusgeneral02]

Richard Barlow no they are not stupid

[@eloisakramer5594]

thank you for the video ... what is Finland approach to this?. They have many nationals like e-bros Mikko Pakkanen , Esa-Matti RUNOLA, JARI OVASKAINEN mentioned in the Pandora Papers leak.

[@ガジュマル-s1f]

the corporate model is outdated already and the general information regarding taxation with unlimited tax liability is extremely inaccurate. Please try again.

[@bgillieron]

Correction: You state Switzerland as having a 8.5% Corporate Tax rate... this is incorrect, you may be referring to the direct federal CIT at a flat rate of 8.5% on profit after tax. There are cantonal as well as communal taxes also as Switzerland has 3 levels of taxation you can't just mention only one. Therefore in effect total Corporate Tax rates for companies are between about 12% and 25%, depending on the company’s location of corporate residence in Switzerland. So compared to your example of the UK at 19%, and Switzerland at12-25% instead of 8.5% does not look so bad anymore for the UK? A lot of Swiss companies would envy the UK rate. :) You need to do your research before calling countries "tax havens" when they are not.

[@crossroads670]

Yes, Switzerland also has a wealth tax on total assets which is very left wing.

[@ronnieince4568]

There are two sides ti the tax question -the rate of tax and what expenses are deductible .For example in the UK trading losses are deductible but not capital losses -in other jurisdictions both are deductible .

[@mancheetah5610]

'Small island nation with very little industry' - Sounds like the UK would be perfect.

[@AOniscenko1988]

Music on the background?

[@andreluismarin8095]

Caymen?

[@ennergie]

Question: if you need to pay for "imagenary" patents, to move the money abrought, how do you get it back? If you do it as a payment, it would increase your profits right? Or are "taxed" profits from abrrought exempt from taxation?

[@TheSeanxy]

So if I make an Ltd and move it to Jersey via shell company. It wouldn't get taxed I could just pay myself those dividends as I'd be the director? How would I avoid capital gains tax would it still be an issue.

[@samwilkinson2534]

The funny thing is that the Cayman islands and bermudq are British, so you can move from the UK to the UK and pay from 19 percent to 0 percent tax

[@ronnieince4568]

They are not the UK -they are Crown Protectorates ascare the Channel Islands , Isle if Man , British Virgin Islands etc -theyvsre self governing with their own legal codes .

[@jorjiang1]

thanks to those tax havens, so we can have cheaper products, because at the end of the day corporations do not pay taxes, all thoses burden is transferred upon their customers. money in the hands of businesses is always more efficient than in the hands of bureaucrats

[@johngoogle8635]

but having an overseas trust wouldnt work for australian residents would it, as their capital gains are treated as "income taxable" not a seperate tax, so those gains would end up being taxed?

[@wilkinsune]

Great video ! What the background song called?

[@choopa1670]

Wow great vid mate cheers

[@cardinal8964]

what is the hiphop track at the end called?

[@hemanthkumar9908]

Very useful video. Thanks

[@Abjefdi]

So is this illegal to do if I live in the uk?

[@angelinabetty]

Five years later, we saw in practice the United Kingdom turning into a high tax hell. Many congratulations to Brexiters!

[@EngineerDJ_Julius]

That was ... AMAZING

[@esecallum]

MONEY MUST CIRCULATE TO DRIVE THE ECONOMY. BILLIONAIRES DON'T CIRCULATE IT AND THEREFORE ARE PARASITES RESPONSIBLE FOR POVERTY

[@hassebrasse7210]

It is pat-tents, NOT pay-tents

[@nikoladd]

Kicking the UK out of the EU solves a lot of tax heaven problems... for a lot of the world, as a common trait of many of those is they are UK territories. UK itself becoming tax heaven is unworkable on so many levels though it's rather odd even TLDR News mentions it. nobody has that low a standard for truth.

[@harrybaker8008]

The Uk were never kicked out though were they…

[@nikoladd]

@@harrybaker8008 no. Unfortunately not. But that's not the point of my comment anyway.

[@JAMAICADOCK]

Liz Truss is a bad luck charm. The Queen dies after swearing her in, and then the pound dies. I hate to see what a second coming is going to bring.

[@adrianradu6223]

Love your series guys and I encourage you to keep up the great work, but please.... CAYMAN****

[@rondamon4408]

I can't understand why many people see tax haven as a bad thing. All countries should be tax havens.

[@aadeshsubedi6397]

anyone after pandora papers?

[@elkapo1900]

there are tax havens because there are tax hells

[@domaspaukstys]

you say tax havens costs world governments money, I say it helps individuals and companies to save their money. That money was never a property of any particular government in first place, so you can't lose what you don't have.

[@michaelsummerell8618]

Odd how this should suddenly be in my KZbin recommended videos, eh Mr Branson?

[@kuku8122]

Only issue will be exchange rates

[@alexfox9031]

I am very sorry to tell you that you are wrong about tax havens. Such that, I am a student in the Cayman islands and it is way more expensive to live here than almost anywhere else. There is no free health care, most people have to pay for private health care and food at the supermarkets are so much more expensive than in the UK. Yes, there is no income tax but the country taxes the people in different ways. You also said that they have easy bank regulations, this is false as most tax havens have some of the most robust banking regulations there are so that people cannot launder money.

[@thomasknight604]

The discussion of trusts is incredibly inaccurate.

[@lord8139]

It’s mind blowing how much money isn’t being taxed 🤮

[@nikolaievans2432]

Cry about it if i were rich i would hide my money in switzerland since there armed by nuterality

[@prich0382]

All big companies do this and celebrities, government people, sports stars...

[@moudue]

How bout they get taxed based on where the income is coming from? Like say a company makes a billion dollars during the year. And half of that was made in America, and 1/4 was made in the UK and another 1/4 in China, then that American half would be taxed by American rates and send to America and the UK 1/4th would be taxed based on UK rates and sent to the UK and same thing for China, then the company would be taxesld based on where they are actually selling their products instead of just where they are located

[@michaelreilly3513]

It would be great too if the world had no war or famine or stupid people....

[@jupex98]

We would all avoid pay tax if we could

[@0631ix]

That map at 5:40, showing Serbia, Bosnia, Montenegro, Albania and Macedonia being a single country - LOL

[@pawelzybulskij3367]

It also showing Ukraine, Belorus, Russia, Turkey and other whole bunch of countries as a single country.