Tax Havens Explained

The world of tax havens is becoming an increasingly controversial area. So in this video, we run through what tax havens are, how they work and discuss why a country would even want to be a tax haven.
Will The UK Become a Tax Haven After Brexit?: goo.gl/8dEHqP
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[@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.

[@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...

[@itsfinnickbitch63]

this deserves more views

[@simray7602]

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

[@itsfinnickbitch63]

welp i guess u should start to learn english then

[@murrowboy]

Ugh.. No. Let me do this for a few years before Uncle Bernie decides to tax the world.

[@pepevinkin3020]

Not until they learn how to spell “Cayman” correctly (not “caymen”).

[@roniquebreauxjordan1302]

Tax studies rwsourcss...these things just fall into ones lap!

[@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!

[@Torchman-]

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

[@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% ?

[@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.

[@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 👌🏾

[@omarmesbah6620]

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

[@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

[@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

[@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....

[@joeschmo7145]

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

[@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.

[@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

[@misererenobis8900]

Well made and informative, thank you.

[@RichGonzalezVerona]

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

[@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.

[@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.

[@_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

[@dominicandreas2109]

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

[@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 😂😂

[@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.

[@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.

[@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.

[@Barc112]

This theme song bangs, too

[@Dremaus1911]

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

[@timojumppanen4142]

Good subject to tackle. Thanks

[@ArchieWard]

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

[@nomadkickbox4049]

Great video on Tax Havens to undemonized the subject!

[@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.

[@maddiemover5894]

Clearly explained - thanks!

[@rubengdful]

Tax heavens are a gift from the gods.

[@keepitraw1]

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

[@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?

[@jerryormston3916]

Stunning, realy good job.

[@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.

[@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

[@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

[@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!

[@MrAbcdesh]

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

[@pradeeprawat4732]

Wonderful explain so thanks sir

[@moviesjean23]

Why are they countries that accept no tax . These should not even be called countries but organizations

[@baha3alshamari152]

They have governments territories they rule and eenforce their laws in and population living there with their own internationally recognized passports So definitely real countries

[@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.

[@adrianradu6223]

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

[@ravindertalwar553]

Exciting and I would like to explore for research purposes only

[@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

[@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

[@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

[@crossroads670]

It’s spelled Cayman not Caymen…

[@gc9362]

who cares tf

[@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.

[@economicsinaction]

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

[@aadeshsubedi6397]

anyone after pandora papers?

[@TheKhilafattv]

Nicely explaned 👍

[@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? 🤷‍♂️

[@brexitisasbrexitdoes7659]

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

[@hemanthkumar9908]

Very useful video. Thanks

[@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 .

[@choopa1670]

Wow great vid mate cheers

[@hassebrasse7210]

It is pat-tents, NOT pay-tents

[@prich0382]

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

[@mancheetah5610]

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

[@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?

[@markfernando8438]

It's a legal form of money laundering.

[@todoldtrafford]

Nope

[@michaelsummerell8618]

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

[@NigelFurtado]

1:57 - It's "Cayman" islands

[@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?

[@vlog12345]

LOL I am planning I am just here to learn about it to do in the future

[@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.

[@andreluismarin8095]

Caymen?

[@EngineerDJ_Julius]

That was ... AMAZING

[@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 .

[@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.

[@charliec8029]

haven't heard a record scratch in a long time.

[@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

[@angelinabetty]

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

[@thomasknight604]

The discussion of trusts is incredibly inaccurate.

[@kuku8122]

Only issue will be exchange rates

[@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.

[@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. 😢

[@YAKUILLASIN]

Thanx

[@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?

[@veryfitting]

Deep dive backing track is beefy

[@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 ?

[@arpansaha8323]

This is called Base Erosion And Profit Shifting.

[@ongbaklegends]

no 'e' in Cayman Islands ... otherwise, interesting video.

[@alexandervillain9816]

I love caymen islands tax policies .

[@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.

[@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.

[@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....

[@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.

[@jupex98]

We would all avoid pay tax if we could

[@eyan4329]

Cough cough Ireland cough cough

[@sbadrawi2011a]

The music in the background is very very annoying.

[@diyanyouknow1757]

Can I do that with my property portfolio, the gov has been taxing me even though I got mortgages to purchase houses lol

[@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

[@skylineXpert]

Instead of New york New rok by Sinatra then Nassau Nassau by Bono.

[@rondamon4408]

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