How Billionaires Hide Their Money

How much do you think of the world’s wealth
is hidden offshore? Take a guess! Millions of dollars? billions? how about hundreds of billions of dollars?
economists estimated that the wealth hidden in tax havens is equal to about 10 parent
of the global GDP (80 trillion dollars), that is more than 8 trillion dollars But why on earth people would hide their money
in the first place, don’t they want to brag about it? Why hide it when you can spend it to have
an incredibly lavish life? Let me just make it clear, it’s not the criminals
who are hiding their money, but the world’s largest corporation, Apple, Microsoft, Google,
you name it! and the people who are running these corporations! It’s a common practice and its 100 percent
legal! how However, the question remains, how do they
do it? isn’t tax avoidance is illegal? Well, let me explain? Let’s say you start up a company (in the USA)
and everything is just perfect. Just in your first year, you have made an
incredible profit of a hundred million dollars! Congratulations! You are a genius! Before you celebrate your success! IRS is going to knock on your door and take
21 million dollars out of it because the corporate tax in the United States is 21 percent! That’s a lot of money! why would you pay so
much to the government when you made that money with your blood and sweat. To be honest, that’s still low because before
Trump (during Obama) the corporate tax rate was 35 percent, which means you would have
paid 35 million dollars in taxes and would be left with only 65 million dollars. But that’s not the only bad news! Even if you decide to go abroad and sell your
product elsewhere (Europe), where the tax rate is lower than in the United States, Uncle
Sam will still come after you for its share of your profit on the top of the taxes you
will be paying in that country. Whether that’s fair or unfair, it depends
on whom you are asking. you can write down what do you think! However, things are not as bad as they seem. There is a way for you to avoid those taxes
legally. Instead of declaring 100 million dollars in
profit, be smart about it! how about you lower your profit to just 30
million dollars and now suddenly you only have to pay only 6.3 Million dollars (21%
out of 30M) instead of 21 million dollars. It’s not as difficult as it seems. Get on a plane and travel to the little island
of Bermuda and set up a new company there, it’s easy, fast and would cost almost nothing,
because you wouldn’t have stuff, building or anything else, except an address to a small
office in the middle of nowhere! Then simply give all of your patents, trademarks
and intellectual property of any kind from your real company that is in the united states
to your new company in Bermuda. So when uncle sam comes to collect 21 million
dollars out of your hundred million dollars! You say sorry! We have licensed this technology from this
company in Bermuda, so we have to pay 70 million dollars to them. So we are just left with 30 million dollars,
so now you only have to pay 6.3 million dollars. Your 70 million dollars in Bermuda are not
taxed because the corporate tax rate in Bermuda is 0 percent. Congratulations, you have saved 14.7 million
dollars. ( make sure the animations do show the scheme) But how about the profit you earned in Europe,
it will be taxed right? You set up a new company in Ireland that’s
going to make another hundred million dollars. instead of paying 12.5 percent corporate tax
in Ireland and the remaining 7.5 percent to the United States. You transfer that hundred million dollars
to a new company you set up in the Netherlands at 0 percent taxes through a little tax loop. Your Dutch (Netherlands) company immediately
sends it back to your first Irish company that’s simply a subsidiary of your Bermuda
company, So the money ends up back at Bermuda where the tax rate is 0 percent. ( make sure the animations do show the scheme) Congratulations you have saved millions of
dollars! That’s how Apple, Google, and many other giant
corporations avoid taxes and hide their money! It might not make a huge difference when you
are earning millions of dollars, but when you are earning billions of dollars, saving
even a billion dollars would make a huge difference. So when politicians increase or decrease the
corporate tax rate, it doesn’t really make a big difference because why pay even a 10
percent tax rate in the united states when you can pay 0 taxes in Bermuda. 
and you can’t really blame them for that because the ultimate goal of any company is to maximize
profit and not pay more taxes. The problem with this method However, every strategy has its flows, including
this one. Having billions of dollars offshore is great
but What is the point of that if you cant use it! Because if you bring it back to the US, you
still have to pay taxes on it, which makes all that scheme useless. But regardless, it still makes sense. When the United States lowers its tax rates,
you bring that money back and invest it. US tax rate was 35 percent, but when trump
lowered it down to 21 percent in December of 2017. 
companies such as Apple aggressively started bringing back all the cash they had been hiding
in offshore accounts for years, If you are watching the news, lately Apple
started aggressively buying back its stock, because you gotta do something with hundreds
of billions of dollars that you suddenly got. That’s why corporations started taking a different
approach to avoid taxes, without an offshore account and in a much more sneaky way. Largest US companies such as Being, Netflix,
Amazon, general electric, either pay 0 taxes or an extremely small percentage. From 2008 to 2017, Boeing paid only 8.4 percent
on 54.7 billion dollars in profit. In 2018, Netflix reported 845 million dollars
in profit but paid absolutely no taxes at all. The company can make a big investment and
dramatically expand itself and gain market share, in fact, they might have to borrow
money and at the end of the year report a loss, and when you are reporting a loss, you
are not only not paying any taxes for that year, but you can forward it to future years. So if you are going to make a significant
profit next year because last year you gained such a huge market share, you still can deduct
your last year’s loss and significantly reduce your tax bill, if not avoid it at all. And its a common practice among the companies. The tax code has many loopholes that companies
frequently use such as tax credits on depreciation or research and development. Some go as far as paying their employees with
stocks, so they are not only deducting it from their tax bill but the company can create
stocks out of thin air. So the company might not be making any profit,
in fact, some companies keep on reporting loss year after year. Uber has a market cap of over 50 billion dollars
and it’s making revenue of a few billion dollars but the company has not reported even a penny
of profit. In other words, it hasn’t paid a single
dime in taxes yet. Even if Uber’s valuation crosses 100 billion
dollars, it still doesn’t have to pay taxes unless it reports a profit. That’s why billionaires hide their wealth
in stocks. Jeff Bezos started 2018, with a net worth
of a hundred billion dollars and made another 40 billion dollars by the end of the year
and paid absolutely zero in taxes on those additional 40 billion dollars. because his wealth isn’t liquid and consists
entirely from amazon shares and he only has to pay taxes if he liquidates his shares by
selling them, but as long as he doesn’t, he doesn’t have to pay taxes. But what is the point of all of that wealth if you can’t use it? This wealth is just on paper! Well, it’s one way to think about it, but
from an opposite point of view, what would you do with a 140 billion dollars in cash. As long as your company keeps growing your
wealth keeps growing. And if you want to drive a bently, fly private
jet or travel across the world and stay in the most expensive hotels. Just use the company’s money and then deduct
as a business expense and lower your tax bill even further. When politicians talk about raising taxes
on the rich, they mean the doctors, lawyers, and engineers who work super hard to make
hundreds of thousands of dollars if not millions and not the real rich people who will always
find loopholes in these tax codes to avoid all of this taxes. I hope you guys enjoyed this video. Hit that like and subscribe button if you
did. Thanks for watching and until next time.

100 comments on “How Billionaires Hide Their Money”

  1. Ivan Matz says:

    so essentially all lowering taxes did is massively increase stock buybacks? thats great. just great. more stock buybacks definetly wont lead to another recession!!

  2. Sourish Saha says:

    Am I missing something here?! or something got leaked ! Why is my youtube wall filled with trillion dollar money hiding

  3. Sourish Saha says:

    complaining that these avoidance of taxes is not right is for the bitches and losers who didn't have the guts to make it

  4. Pixel says:

    Also keeping their money in paper also saves them from inflation

  5. FocusPics says:

    Taxation is theft

  6. Bob Saget says:

    This is literally why capitalism doesn’t work. Corporate greed will always prevail and we need to force them to pay their share like the rest of us do.

  7. anas boulkhalil says:

    The news won't tell you that trump did save the US economie

  8. Jp Jp says:

    My dad did it. The government over charges. So it's only fair to not be forced to pay so much..

  9. Abhishek Srivastava says:

    What about India?

  10. Colton Brummel says:

    "it's not the criminals who are hiding their money…" it's just the tech overlords who work for the criminals! HAKUNA MATATA! lol (silly silly)

  11. Keep Smiling says:

    This is so fucked up and wrong

  12. iVince905 says:

    Americans: cutting taxes for the rich would provide more jobs and wealth to the middle/lower class
    Top 1% of Americans: I’m going to store all these tax breaks in Switzerland and Bermuda!

  13. Nikos says:

    Don’t they pay the difference from 0% in Bermuda to us corporate tax to us?

  14. Sovereign Cigar Co. says:

    Currency is an illusion

  15. R says:

    I dont even have money to show

  16. Daniel Strait says:

    this gives me hope

  17. oratile masala says:

    Well it is their money after all…Shoot me

  18. gee gleeshy says:

    I hide my money under my bed- Eugene Krabs

  19. Mimtay says:

    Why is the guy speaking like a Down syndrome

  20. Maaybe says:

    Now poor people are mad with rich people because they do not understand the loopholes in our laws

  21. Steve Arce says:

    Persian Accent?

  22. kid4ever says:

    Heeeendreds of Billions of dolers

  23. Pratyush Dash says:


  24. Matthew Desmarais says:

    HA HA

  25. zypie1 says:

    Great video!

  26. Pedro Palermo says:

    I find this disgusting.

    I mean, countries shouldn't overtaxes companies but in the american scenario, avoiding taxes is unethical in a wat that is like a sin.

    Taxes are the price we pay for a civilized society.

  27. Kanth King says:

    BAN BERMUDA companies established in any country with 0% tax AND most importantly levy wealth tax on actual wealth irrespective its in stock value not just liquid cash..

  28. domitry jobby says:

    this video is just wrong. not paying taxes is very good and cheers to those who don't

  29. Linah Nanziri says:

    Personal Bentley & Private jet as company expenditures 🤯

  30. GunterDaPenguin says:

    21%???????????????? Da fuq, that's nothing, the rich pays 70% in my country…

  31. Mike Haydon says:

    In the current societal setup, it is morally right to pay all the taxes you have to pay. And not a cent more.

  32. Brandon Brünious says:

    They hid it under their butt.

  33. ron5935 says:

    When will taxpayer stop believing the political lies about taxing a business. It can not be done. A business looks at tax the same as rent, salary, and any other expense, i.e. pass it on to customer. The customer pays it in higher prices. Politics!
    Depreciation is not a loop hole. It is a legitimate cost of replacing old equipment.
    We can tax foreign companies who do business here. Reverse is fair.
    Progressive income tax is straight from the communist manifesto, 1849 written by Mark and Engels. We had to amend the constitution to get it in the US.
    Why estate or inheritance tax? Because they can. People with estates already paid tax once on the earnings.
    Stop all this baloney by making everyone pay tax including bottom 47%.
    Perhaps they will then stop demanding "free stuff" from the government. Or establish if you do not pay tax, you do not get to vote, i.e. demand free stuff.

  34. Ridwan Syah Putra says:

    Enjoyed this so much

  35. UnleashedGraffixx says:

    This was a really good video and well thought out. I just learned most of this stuff over this past year. I just watched the movie The Laundromat, which was about the Panama Papers fiasco. This video reminded me of that.

  36. Amazing Things says:

    You are making best of the best contain in YouTube…. For future billionaires..

  37. tushar k3ya says:

    Best video on the earth…. This made my day…
    I was thinking about taxes in India , last night. Then , see this !

  38. Stephen Hummel says:

    This is illegal it's called embezzlement

  39. Palesa Palz M says:


  40. Cacophony Effects says:

    “How much of the worlds wealth is hidden off shore” damn billionaires smuggling money to mars and Venus

  41. Andre R. Mallet says:

    I think you meant to say "How about thousands of millions of dollars"…not hundreds.

  42. Andre R. Mallet says:

    ok but what's the tax rate on 1 billion, then?

  43. facts bluboi says:

    I'll buy all the inventory at apmex and coincbase

  44. Samuel Cruz says:

    since when amortization it's considered a tax loophole?

  45. Mark Yun says:

    great video

  46. ryan jones says:

    This video could also be titled "Why the US Stock Market is Artificially Inflated."

  47. Thefucking Error says:

    I have empty bank account. They can hide it in my account.

  48. Onehourworkout says:

    That's that's because they buy the politicians

  49. Jan Arne Wirths says:

    Please learn to pronounce hundred!

  50. Rohan Muppa says:

    As a billionaire I can confirm this

  51. Jimmy Beau says:

    iT mIgHt NoT mAkE a BiG DiFfErence wHen YoU’rE eArNinG MiLliOnS oF dOlLars …yeah sure

  52. Bughatii Lovren says:

    Government should relax their tax structure to encourage these companies to pay their tax legally.

  53. b says:

    Who really cares because its all just paper or gold anyways.

  54. Brian Wong says:

    It's true. The richer you got, the cheaper things get. People pay you to wear their shit instead of having to buy it.

  55. :Robert-Francis : Sullivan. says:

    You forgot the
    separate investment
    accounts of private
    insurance contracts.

    (… good luck finding
    an expert in that area)

    I’m one of the only
    experts who speaks
    about it publicly (or
    w/ people worth less
    than $50 million …)

  56. Synthol says:

    Here before 100k

  57. CJ says:

    Great and clear tutorial.

  58. Micheal Angelo says:

    Can you make a video regarding Value Added Tax, can that help in taxing the companies better?

  59. Emi 1 says:

    This tax avoidance is for companies, so how do individuals avoid paying tax?

  60. Elvira Florence says:

    I am glad that this video is showing wise way to be billionaire, not as show off jerks

  61. Bryan Rodas says:

    this is so true

  62. Ankur Kataki says:

    Very true

  63. Daily Regis says:

    I love the way he pronounces Bermudas 🇧🇲

  64. Colly Doo says:


  65. 松井珠理奈 says:

    Who wants to give a government a free money you have earned so hard fucked this shit having alot of money still makes me unhappy

  66. no one says:

    They not doing anything wrong
    They playin smart and playin the hell out of the system, just like you should be doin

  67. A A says:

    Hi, it's HUNDRED not handred.

  68. ChrisJ says:

    Great, so how can I stash my wages offshore to avoid paying the IRS?

  69. Melissa anderson says:

    I have a hard time trying to find.. a sponer right now for my art.. show.. I have to paint and have an art show next week

  70. Melissa anderson says:

    and I always ask.. can and it's always no no no no PEOPLE are so mean.. I'm only asking for help on funds to get.. my art show going.. my email address is .. if I can't find I'm doomed I.mean.. so lost

  71. Melissa anderson says:

    I'm an acter in background extra in the movies and an artest..

  72. Melissa anderson says:

    hoping things go good this year

  73. James Cronin says:

    Thanks to our crooked Supreme Court, corporations can buy as many politicians as they want. Our legislators do not write the laws. They don't even read them. Corporations write the laws, and the crooked politicians pass them. We live in an oligarchy. And at the same time as 91 of the Fortune 500 companies paid ZERO income tax last year, at least we're cutting food stamps. What Harry Truman REALLY said was "How many times do you have to be screwed in the ass before you turn around to look to see who's doing it to you." If you vote for a Republican and your income doesn't come from investments, you're voting against yourself. Period.

  74. RepeatAway says:

    8 Trillion Is Not Even Close. Watch 'Turks & Caicos' (the 2014 Movie).

  75. G mG says:

    Very intresting clip. Thanks!

  76. VERTICAL Wisdom says:

    So funny, hiding YOUR money. It is theirs. What they do with THEIR money is their business.

  77. Famous Productions says:

    Can u be my accountant

  78. Naphtali says:

    Good for them

  79. muhammad Nadeem says:

    Brilliant video. I much appreciate your kind efforts for Tax avoiding legally and converting it to double, tripple the wealth of the richest.

  80. Harrison Masih says:

    i dont get it… can some1 plz explain

  81. Armistice says:

    The thing is billionaires and corporation have alot of money, and if their profit are going to be taxed, then prices of goods too will be increased. And I highly doubt the government will be smart with that extra cash. They literally overpay for everything. So it is basically a double edged sword.
    And poorer people, let's say u earn 100k and you are taxed 25%(I don't live in the US), that's 25k. Yes that is alot for a middle class but for the billionaires and corporation, they earn hundreds of millions to billions. A few percentage will be enough to cover alot of their expenses. That is why offshore is so attractive.
    If taxes were less heavy on them, I am sure there will be fewer cases, if government have a maximum limit for taxes for corporation, they might reconsidered having all those frozen cash.

  82. Digital Porch says:

    They can hide some of it here

  83. ViAaRo says:

    Where do these companies get the money from? You and me. If you think this is unfair you have the power to not contribute. Don't buy their products, don't use their services. Boycott them. Don't watch Netflix propaganda, don't buy in Amazon…avoid Starbucks…and so on

  84. Cat120209 says:

    Small business are hit the hardest

  85. H3H3 JOJI says:

    Filipinos: aight, imma hide my money in Jollibee

  86. arshdeep singh gill says:

    how do make your videos bro? The animation is fricking cool

  87. happios says:

    So this is why Andrew Yang said Elizabeth Warren's wealth tax is useless.

  88. Sameer Rizvi says:

    Fuck this system!

  89. skemo lehgen says:

    Legal scamming,that's what I call it.but the government kill the average citizen with income tax.the system is a fraud.

  90. Alan Mwebaze says:

    Make this video on Indian big company

  91. Dafuq says:

    We should remove taxes and place a monthly subscription instead. That way people understand for what their money is used.

  92. Lufefe Ngilana says:

    I love this 😂😂😂

  93. valkriey says:

    this video, really useful…im not millionare but your video still very interesting. good job

  94. FreeBird always says:

    Tax is daylight robbery

  95. অমিতাভ ঘোষ says:

    Handred thanks Ankle Sum 😀

  96. Rene Rodriguez says:

    They'll catch up w u sooner or later…a it's like rappers pay no taxes after 10 years the problems start

  97. keep it 1000 says:

    Uber drivers should make more money. I wanted to try it until I did some research.

  98. Zork Hun says:

    spectacularly stupid and sleazy video. Zero understanding of business, money or taxation.

  99. michael allen says:

    The question is is how to rewrite the tax codes so that it makes this impossible so that these corporations have to pay their fair share in taxes.

  100. Ten Minute Tokyo 2 says:

    China sure got a deal lifting and shifting $100 trillion of the US economy for free.

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