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Around The Tax-Avoiding World In 53 Minutes

Tyler Durden's picture


"Where do multinationals pay taxes and how much?" Gaining insight from international tax experts, this excellent documentary takes a look at tax havens, the people who live there and the routes along which tax is avoided globally. As we have previously discussed in great detail, those routes go by resounding names like 'Cayman Special', 'Double Irish', and 'Dutch Sandwich' amid a financial world operating in the shadows surrounded by a high level of secrecy where sizable capital streams travel the world at the speed of light and avoid paying tax. 'The Tax Free Tour' explains the systemic risk for governments and citizens alike. Is this the price we have to pay for globalized capitalism? At the same time, the online game "Taxodus" provides an interactive guide to hiding your company's cash. In the game, the player can select the profile of a multinational and look for the global route to pay as little tax as possible.

The Documentary:

Taxodus - The Game explained:


Taxodus - The Game: (click image for game link)


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Sat, 05/04/2013 - 14:53 | 3530278 TeamDepends
TeamDepends's picture


Movement of Babylon People

Oh yeah

Sat, 05/04/2013 - 15:12 | 3530306 TeamDepends
TeamDepends's picture

Uh!  Open your eyes and look within:

Are you satisfied (with the life you're living)?  Uh!

Sat, 05/04/2013 - 15:16 | 3530312 DoChenRollingBearing
DoChenRollingBearing's picture


Is there a version for people too?

Sat, 05/04/2013 - 15:27 | 3530334 samsara
samsara's picture

I think like chess, we're the little pieces in the front row

Sat, 05/04/2013 - 15:35 | 3530346 TeamDepends
TeamDepends's picture

Set the captives free!

Sat, 05/04/2013 - 16:00 | 3530376 MillionDollarBonus_
MillionDollarBonus_'s picture

I find it amusing that many Zerohedgers don't even understand the difference between taxation and theft. If this site wants to be taken seriously by reputable journalists and publications, it's readers need to tame their views and make them more mainstream.

Sat, 05/04/2013 - 16:05 | 3530385 TeamDepends
TeamDepends's picture

So, "set the captives free" was a little too extreme for you?

Sat, 05/04/2013 - 18:12 | 3530579 bonderøven-farm ass
bonderøven-farm ass's picture

Yes, MDB.....remain in situ.  One musn't upset the balance, no?

Sat, 05/04/2013 - 21:06 | 3530824 MisterMousePotato
MisterMousePotato's picture

I cannot catch what is happening at ~51 minutes when Matt Brittin is speaking. Anyone get that?

Sun, 05/05/2013 - 13:48 | 3532249 The Navigator
The Navigator's picture

Laws and Taxes are for Peons and Peasants.

Sun, 05/12/2013 - 19:27 | 3554475 MisterMousePotato
MisterMousePotato's picture

I liked it. Enough to give you an up arrow. But, did anyone catch what he actually said? Seemed to cause everyone in the room much hilarity. (Who knows? Maybe you're right?)

Sat, 05/04/2013 - 16:17 | 3530403 Rustysilver
Rustysilver's picture


your were gone for a while: it was so nice.

Sat, 05/04/2013 - 16:53 | 3530463 monad
monad's picture

Thought you died.

Sat, 05/04/2013 - 17:19 | 3530514 jon dough
jon dough's picture

Reputable journalists and publications?

The Tylers ARE the reputable journalists & ZH IS the reputable publication...

"Where you been in livin'? Reseda?"


Sat, 05/04/2013 - 17:33 | 3530534 thisandthat
thisandthat's picture


If journalists and publications want to be taken seriously by this site, its scribes need to untame their mainstream views and make them more reputable.

Fixed it a bit for you, MillionBogusDollars.

Sat, 05/04/2013 - 17:42 | 3530543 Spigot
Spigot's picture


Sat, 05/04/2013 - 19:59 | 3530715 Turin Turambar
Turin Turambar's picture

"I find it amusing that many Zerohedgers don't even understand the difference between taxation and theft."


There is no difference.  Taxation IS theft. 

Sun, 05/05/2013 - 13:22 | 3532215 Walt D.
Walt D.'s picture

The EEU is relying on the fact that some people view theft using taxation by the government as legitimate. What happened in Cyprus was theft by any definition. 

The  EEU is already conspiring to steal private property in Spain by threatening the Spanish Govermnent if they do not "impose taxes".


Sat, 05/04/2013 - 16:15 | 3530398 Silver Bug
Silver Bug's picture

As the economies of the world get worse and worse, you are going to see more and more people just simply not paying their taxes.

Sat, 05/04/2013 - 18:39 | 3530613 Pure Evil
Pure Evil's picture

Debtors prisons will take care of those unable or unwilling to pay their fair share.


Sat, 05/04/2013 - 19:26 | 3530666 Kirk2NCC1701
Kirk2NCC1701's picture

The collective repudiation of excessive taxes -- taxes imposed by a hijacked or irredeemably corrupt government -- is the most radical and non-violent way of changing not only that hopeless government, but also the way to collapse the irreparable system.

Sat, 05/04/2013 - 14:55 | 3530279 resurger
resurger's picture

Can i download the game on my Samsung tab?!

Sat, 05/04/2013 - 14:56 | 3530280 The Heart
The Heart's picture

Good Saturday to all!

Well, since it is a day for documentaries, here is one that may be of a higher priority.:

Sat, 05/04/2013 - 15:08 | 3530297 Herd Redirectio...
Herd Redirection Committee's picture

This guy from the Washington Institute @4:08 starts listing every false flag or attack that happened w/ foreknowledge in US history!

He mentions the Lusitania, the explosion of the Maine, the Gulf of Tonkin episode, Pearl Harbor...

How each one conveniently dragged the country into war...

Sat, 05/04/2013 - 15:22 | 3530323 Euro Monster
Euro Monster's picture

Thanks for these documentaries ZH and The Heart! :) Appreciat it!

Sat, 05/04/2013 - 14:56 | 3530283 LetThemEatRand
LetThemEatRand's picture

Taxodus for the few.  Taxidermist for the rest of us.  Can't afford that operation for mom because 400 people control more wealth in the U.S. than half the population combined?  At least you can still afford a good taxidermist and enjoy her for years to come.

Sat, 05/04/2013 - 15:22 | 3530322 DoChenRollingBearing
DoChenRollingBearing's picture

I KNEW it!  "Taxodus" is only for The Elites!  How much do you have to have to play "Taxodus"?  $5 million?  $100 million?  $1 bazillion?  $1 gazillion?  Inquiring minds want to know!

Sat, 05/04/2013 - 15:32 | 3530344 Aeternus
Aeternus's picture

I think it starts somewhere around 100 million in revenue/taxes generated and the perks go up from there exponentially. I would advise looking into manufacturing printers, that's the future, don't forget to source a supply of ink as well.

Sat, 05/04/2013 - 17:05 | 3530482 Poetic injustice
Poetic injustice's picture

Good, then in 3-4 years everybody with average salary will qualify.

Sat, 05/04/2013 - 19:38 | 3530639 Pure Evil
Pure Evil's picture

If someone is so concerned about their mom affording an operation, why not write Bernanke and ask him to print an extra 85 Billion a month to pay for your mom's operation along with everyone else's operation.

And, while you're at it please explain how some multinational paying their taxes is gonna somehow trickle down from the IRS and pay for your mom's operation.

In fact, why shouldn't we all pay an effective 90% tax rate so everyone's mom can have an operation, its only fair.

Here's my advice, if your mom can't afford an operation in this country, fly to Thailand. From what I hear they have highly rated hospitals that offer operations for a fraction of the cost it takes to get one in this country.



I realize most people, like welfare parasites, expect someone else to pay for their medical care.

And, isn't that what Obamacare is supposed to be all about?

Sat, 05/04/2013 - 20:41 | 3530776 LetThemEatRand
LetThemEatRand's picture

I realize you do not see the connection between 400 people have more wealth than 1/2 of an entire country and a lot of moms needing to be stuffed instead of cured of shit.   But I happen to see a very direct correlation, and it has nothing to do with welfare parasites.  Quite a few hard working people are going to have to stuff mom this year so that your ideology can continue to protect the mega-yacht set.  And I would add that you don't need to have more wealth than 1/2 the country to have a mega yacht.  At some point it just gets ridiculous.

Sat, 05/04/2013 - 17:18 | 3530511 shovelhead
shovelhead's picture

It works on a much smaller scale as well.

Start a charitable foundation. I can testify that Deloitte is more than adept in creating strategies to er...become tax neutral. A casual conversation with a family friend opened this shadow world to me because she works with foundations for grants. Granted, I got advice for free and did the legwork myself. They don't come cheap but the benefits outweigh the costs depending on the structure.

All legal.

As simple as providing college scholarship funds to a few local kids every year.

I don't pay for drone bombing kids. I send them to school.

Sat, 05/04/2013 - 15:02 | 3530290 Aeternus
Aeternus's picture

The Taxodus Exitus To Pluto: The Ultimate Off-Planet Tax Haven.

Sat, 05/04/2013 - 15:23 | 3530315 Aeternus
Aeternus's picture

Fuckin' unreal.

Sat, 05/04/2013 - 15:25 | 3530328 DoChenRollingBearing
DoChenRollingBearing's picture

+ 1

What happened to the Apple Rant?  OK, I deleted mine too...

Sat, 05/04/2013 - 15:27 | 3530337 Aeternus
Aeternus's picture

Fuck if I know.


I'll post it again.



Fuckin' hypocritical disingenuous cunts.


One set of laws for the poor and one set of laws for the rich.



Sat, 05/04/2013 - 17:02 | 3530349 DoChenRollingBearing
DoChenRollingBearing's picture

I wrote that I disliked my iPhone.  I bought it to "improve my life", right..., LOL!  When my contract runs out, I will go buy one of those little devices where you punch buttons, and it makes a phonecall!  


Sat, 05/04/2013 - 17:55 | 3530565 ParkAveFlasher
ParkAveFlasher's picture

Israeli airstrike on syria hours ago.  Can't have comments negative to Apple when the ICB has so much invested.

Sat, 05/04/2013 - 15:48 | 3530360 booboo
booboo's picture

Why, because they choose to use the "laws" to their benefit or they are cutting off the means for the government to expropriate their wealth for your benefit? It's every mans duty to only pay Ceasar what is owed Ceasar. If that ain't enough tough shit, Ceasar wrote the law, bitch at him.

Sat, 05/04/2013 - 17:31 | 3530532 shovelhead
shovelhead's picture

I agree.

One audit by the IRS and $10,000 getting stolen from your acct. will make you an active 'revenue minimizer'.

Theres a good reason why schools teach kids how to wage earners instead of starting businesses.

The Govt. gets the employers to do their dirty work for free and confiscate the workers earnings.

Sat, 05/04/2013 - 20:45 | 3530782 LetThemEatRand
LetThemEatRand's picture

The brilliance of the 400 people who have more wealth than 1/2 of the country is that they convince the average guy that somehow the 400 should not pay because you don't like to pay.  But you had to pay anyway, didn't you.  They have their money intact, and you don't.  But you defend them.  That's how it is always going to be apparently, because so many people fail to understand the difference between the truly wealthy -- most of whom inherited their wealth from robber barons or royalty many generations ago -- and the guy who makes a few hundred thousand working his ass off.

Sat, 05/04/2013 - 23:35 | 3531164 Dave Thomas
Dave Thomas's picture

The little guy, not in the 400 club should just check out. It wasn't for him in the first place.

Sat, 05/04/2013 - 15:03 | 3530291 resurger
resurger's picture

Zimbabwe is shit compared to Somalia

Sat, 05/04/2013 - 15:08 | 3530296 debtor of last ...
debtor of last resort's picture

Taxodus for multinationals, Galt for the rest. Did i say gold? Fuck multinationals, i feel like a nanex blip for several years now.

Sat, 05/04/2013 - 15:22 | 3530326 skank
Sat, 05/04/2013 - 15:26 | 3530333 100pcDredge
100pcDredge's picture

Jah... and so... wtf?

Sat, 05/04/2013 - 15:41 | 3530353 spanish inquisition
spanish inquisition's picture

Wait, I am confused.. Now that corporations are people, aren't they taxed on worldwide earnings like me?

Sun, 05/05/2013 - 01:12 | 3530363 Aeternus
Aeternus's picture

No, sorry, your just another serf on the tidal wave of useless eaters careening headlong into the barrel of cannon fodder waiting to be shot out into the blackhole abyss of unofficial undocumented statistics in a BLS file cabinet where you will sit collecting dust until the end of time.


Now pay up.



Sat, 05/04/2013 - 15:56 | 3530367 NidStyles
NidStyles's picture

Taxation is theft.

Sat, 05/04/2013 - 16:49 | 3530456 agent default
agent default's picture

Theft is when you are not looking.  This is in your face at gun point.  Taxation is robbery.

Sat, 05/04/2013 - 16:58 | 3530465 AssFire
AssFire's picture

Taxation is a shakedown- by those who claim they "feel" for the for the poor, when actually they just want the tax money to waste through ineffective administering gov. agencies and grants for their corporate buddies as well as the ability to grant tax breaks to those same buddies.

Redistribution is the same as a mob shakedown- just going to a different mob.

Sat, 05/04/2013 - 15:56 | 3530368 Walt D.
Walt D.'s picture

US companies have been doing this domestically for decades. 

In fact it is considered good business planning to locate in the state that minimizes the tax burden.

Why do banks, headquartered in California have their credit card divisions located in tax free states.

REITs tend to locate in Maryland.

In the past when Massachusetts taxes went out of control, high tech companies relocated to Texas.

People are leaving California in droves.

Companies in New York are relocating to Florida.

You have to ask yourself - what extra benefits am I getting in California that I will not get in Texas - oh, I forgot about the lousy public education system in California.

Socialism is a system that promises more than it can deliver. In the past, this has lead to war - countries would invade other countries to steal their resources. In an electronic age this is no longer necessary. The new Hitlers did not have to invade Cyprus or Spain to plunder their wealth.

Sat, 05/04/2013 - 16:00 | 3530375 lolmao500
lolmao500's picture

Taxes are only for peons. Always have been.

Sat, 05/04/2013 - 16:03 | 3530383 tu-ne-cede-malis
tu-ne-cede-malis's picture

I love how not once was it mentioned that instead of going after these corporations who (legally) reduce their tax burdens to near 0, we instead reduce everyones taxes to that level. 


Then again, who would build the roads? /sarc



Sat, 05/04/2013 - 16:23 | 3530415 Kreditanstalt
Kreditanstalt's picture

Doesn't answer the essential question: is there anything WRONG with avoiding a government's taxes?

Sat, 05/04/2013 - 16:52 | 3530460 Dull Care
Dull Care's picture

To answer your question, not a damn thing....

Sat, 05/04/2013 - 18:33 | 3530606 PeaceLover
PeaceLover's picture

Nothing at all but the problem is the tax guys/payers like me can't get out of it.
So it seem like we should all get to pay 1% max or the big guys that are not hurting for anything
and wouldn't be if they payed a total of 50% should pay at least the same as the little guys that support them!



Sun, 05/05/2013 - 00:49 | 3531339 Kreditanstalt
Kreditanstalt's picture

Except that you forgot to mention that the vast majority of tax revenue comes from...thse "big guys"...

Sat, 05/04/2013 - 16:30 | 3530427 koaj
koaj's picture

I gave my wife the Double Irish and the Dutch Sandwich the other night...drank two Guinness tall boys then beat her with a clog


Taxation is theft. Government is force. War is Peace. Freedom is Slavery. Ignorance is strength.

Sat, 05/04/2013 - 16:40 | 3530440 IridiumRebel
IridiumRebel's picture

I've been known to use the Dutch Oven.

Sat, 05/04/2013 - 16:39 | 3530436 IridiumRebel
IridiumRebel's picture

My wife and I have decided to strongly look into C. America for new digs after school is over. She can practice medicine and I wanna be an online lawyer that has a digital practice in either bankruptcy or intellectual property. I wanna buy a 3-5 acre plot in either Nicaragua, Panama or Costa Rica. I've been doing my research and seems very doable. For the initial living quarters we are going to fashion shipping containers. This is 3-5 years out, but I was looking for any thoughts and the usual crass ZH tilt. I'm a little tired of the police state and I've sold my wife on it cuz she wants to travel the world. She begins flight lessons this year too. I just wanna get outside of this illegal system as legally as possible. I'm pretty much done with it. I see no solutions to the current paradigm. I think going Eco self sustaining is a good way to be. Thought?

Sat, 05/04/2013 - 16:57 | 3530472 DoChenRollingBearing
DoChenRollingBearing's picture

Hablan Uds. español?

Otherwise you will probably not be happy there.


There's a ton of information out there re leaving the USA, even more on just preparation itself, including info at my latest blog article.

Costa Rica already wants prospective immigrants to have a steady (passive) income, the rules are looser for Panama and Nicaragua.  If you choose Nicaragua, do not open a business  there, I know a Nicaraguan family that has had many problems with the thuggish Ortegas/Sandinistas.

Things will work better for you if you arrive with money and if you are very careful with it while there.  The old joke goes:

Q: How do you wind up with a million dollars in Costa Rica?

A: Go down with $2 million...

Sat, 05/04/2013 - 17:33 | 3530531 IridiumRebel
IridiumRebel's picture

Gracias amigo DoChen. Mi pais favorativa esta Panama. Yo hablo espanol mas o menos pero yo quiero aprender mas. Nicaragua es peligrosa con Sandinistas y Otras. Este yo se. Vives en Peru? Yo odio la vida en America con policias muchas siempre Mirando todo. Panama es muy Linda. Que blog tu Tienes? Gracias para meayuda con este pregunta.

...y para la puta que vota abajo.....CHENGA TE.
Nanuun sexii higgun namjainiku tachi kombi cachi pio.

Sat, 05/04/2013 - 23:08 | 3531066 DoChenRollingBearing
DoChenRollingBearing's picture

Vivo en el sur de la Florida, capital, pues, de latinolandia...  :)  Mi esposa es peruana.  Se dice que Panama es bueno para gringos, gente amable.  Hay dos compañias de rodamientos alli (Koyo y NTN tienen sus almacenes para Sudamerica alli en Colon).  Y piden MENOS fastidios que Costa Rica...

Les sugiero pasar un minimo de 8 semanas (pasar como turista es OK por parte de esas ocho semanas) en cada pais a que piensan vivir.  Para ver si les gusta la comida, hablar con abogados, etc. Recuerda que la esposa tiene que disfrutar la vida alli tambien...

Se puede comunicar conmigo a mi nombre encima arroba gmail punto com.  English is best!

Mi blog aqui:

Sat, 05/04/2013 - 17:49 | 3530559 IridiumRebel
IridiumRebel's picture

I said thoughts not downvotes. Man up and tell me why I'm dumb?

Sat, 05/04/2013 - 18:17 | 3530586 Boba Fiat
Boba Fiat's picture

Because you didn't mention Belize.  Only English speaking nation in C. America.  Great Caribbean waterfront available.

PS--I didn't downvote you.  Gave you an upvote for thinking like me.

Sat, 05/04/2013 - 20:13 | 3530705 James
James's picture

Iridium - If you go the shipping container route consider getting RV slideouts for it. Also consider the 9'6" tall ones. And put the insulation (6" styrofoam) on the OUTSIDE and cover w/siding.

Slideouts will turn that 8 x 40 box into potentially 16 x 40.Put the door into the wall that slides out and then you can use a remote to close in for security when you leave. Stack one on top of that to double living space.

High ceiling will allow burial of plumbing and HVAC. Then hang suspended ceiling w/that fancy architectural panels they make.

ALL insulation should be on the OUTSIDE of a bldg. w/ MASS (sheetrock, concrete, etc.) inside to hold heating/ cooling.

JMHO but I bet you would enjoy life more living a sustainable lifestyle.

If you feel like it YOUTUBE  that guy growing 5 tons of food a month using Aquaponics on just 3 acres.

Edit - Here's that link

And as Elvis said.......


Sat, 05/04/2013 - 16:47 | 3530446 falak pema
falak pema's picture

SO does this article now indicate that ZH espouses the cause of governments reigning in the tax havens that Reaganomics and Thatcherism have created as the iconistic shadow banking elitist resorts of the happy few, projected to forefront by the deregulation meme since 1980s?

The libertarians do not believe in taxes and thus tax havens are the way the whole world should be. Suppression of "Tax theft" via "free havens" is just pure libertarian logic finding its true level for money earned like free flowing water does.

How does taxation of corporates fit in with the invisible hand of the market utopia  and allowing entrepreneurs to put their money wherever they want to without statists asking for contributions to level the social table and build a dream for the not so privileged 90% ?

The crimes of neo-con free marketeers in oligarchy mode and the chimes of statist tax guzzlers...this crazy crisis is bringing out forefront the issues of capitalist civilization and its hard choices for all in society.

Sat, 05/04/2013 - 16:50 | 3530458 IridiumRebel
IridiumRebel's picture

I feel that some taxation for basic services like firemen and nurses and what not is ok but the polidicks ransack it.

Sat, 05/04/2013 - 17:45 | 3530551 shovelhead
shovelhead's picture

Local and state taxes provide your services. I have no problem paying those because I receive value from them.

I derive no value from Federal thuggery. No value from a 'free' pamphlet' that cost taxpayers $23.00 for the Feds to print to tell me that walking my dog is good for my health.

Sat, 05/04/2013 - 17:50 | 3530561 IridiumRebel
IridiumRebel's picture

I agree. I meant state and local.

Sat, 05/04/2013 - 17:20 | 3530513 Cathartes Aura
Cathartes Aura's picture

the irony of "capitalists" daydreaming about uprooting for havens pre-occupied by amrkn-military for decades of corporate exploitation is not lost on me.

nor will it be on those who've managed to survive the de-stabilisations in their villages so far. . .

Sat, 05/04/2013 - 18:02 | 3530573 shovelhead
shovelhead's picture


The socialists will pay. They're all about equality, right? Moot point anyway. France is driving out the evil capitalists so all that will be left is the famous Socialist Paradise.

Free Armagnac and fois gras for all.

Sat, 05/04/2013 - 18:28 | 3530597 PeaceLover
PeaceLover's picture

There right about no taxes I suspect but since the world is taxing.

The f*()&ers at the top that can't even count there own money NEED TO PAY THE SAME or more than the little guy.


Once again watch the Lesster video


Sat, 05/04/2013 - 16:48 | 3530454 IridiumRebel
IridiumRebel's picture that Obamas Roman Ceaser name?

Sat, 05/04/2013 - 16:57 | 3530471 q99x2
q99x2's picture

Arrest the Wallmart heirs and redistribute their stolen wealth. Don't let them get away.

Sat, 05/04/2013 - 17:49 | 3530492 Roandavid
Roandavid's picture

So, in a nutshell, the thieving incompetents in government are pissed off that the thieving corporations are more competent in their thieving.

Fuck em all.

Sat, 05/04/2013 - 17:19 | 3530503 JimmyRainbow
JimmyRainbow's picture

site of someone collecting infos about taxation globally (may be of interest)

hope its new and interesting for some readers

Sat, 05/04/2013 - 17:24 | 3530518 pagan
pagan's picture

Most people think that "taxhavens" is something on the fringe.

This docu shows that it is completely mainstream. The whole system is dependent on it now.

Sat, 05/04/2013 - 17:54 | 3530563 Bokkenrijder
Bokkenrijder's picture

What was unfortunately missing in that documentary is that total fucking hypocrit called Bono from U2 who preaches that everybody ELSE should pay more taxes, save the 3rd world and save the environment, but has U2 registered in The Netherlands so they hardly pay any tax on the royalties on their music.

Sat, 05/04/2013 - 18:31 | 3530601 shovelhead
shovelhead's picture


It's easy to be generous with other peoples money.

Sun, 05/05/2013 - 15:07 | 3532493 e-recep
e-recep's picture

bono is a NWO-bitch.

Sat, 05/04/2013 - 18:10 | 3530577 Howard
Howard's picture

Good for those companies. Keeping governments from stealing money to be used to fund? unjust wars and regulating away people freedom. I trust Amazon, Google, and Starbucks with more money much more than any government. Instead of trying to get these companies to pay more taxes we should focus on lowering everyone else's tax burden. Interesting documentary but definitely pushing an agenda.

Sat, 05/04/2013 - 18:32 | 3530604 kragsquest
kragsquest's picture

But plenty of people get caught if they are not sly and all the do-gooder moralists and other pinheads will jump all over you if you confess to tax cheating or if your name appears in the media, who defends you then but a few real friends?



   For several years now, a variety of high public officials have openly declared that the federal income tax laws are incredibly complex and need to be either substantially revised or scrapped. But after making such statements, these officials invariably fail to identify what specific parts of the tax laws suffer from this condition, choosing instead to conceal them. Are the objectionable parts of the federal tax code secretly and quietly discussed behind closed Congressional committee doors? If they are, why doesn't someone inform the American public of these deficiencies so that they may likewise participate in this debate? Is it possible that it is the major and not various minor features of the tax laws which are complex, even uncertain? Is it possible that these major features are so fundamentally flawed that they simply cannot be repaired? If so, what is the legal consequence of this complexity?

Sat, 05/04/2013 - 23:39 | 3531180 Dave Thomas
Dave Thomas's picture

Same old story, over and over again.

Sat, 05/04/2013 - 18:41 | 3530615 JR
JR's picture

This documentary look at tax havens may be one of the greatest revelations on high stakes tyranny ever uncovered, and here it is on Zero Hedge.

Now we know why Congress was purchased away from the American people. Now we know the reason the American people have no representative government. It’s been bought, packaged up and sold to the multinationals.

And the only cost incurred for the offshore industry to engage in this financial fiscal manipulation of greed that is causing such market distortion and poverty is direct payment to a few select politicians and regulators who make the agreements so that…

·         Apple pays no more than 1.5% on profits it generates outside the United States, profits that if allowed to flow back into the US would be taxed at 35%.

·         The IMF and World Bank can do numerous studies delineating poverty but never study the tax inequality that creates the poverty -- the tax havens that divert all the public resources of the entire world to the private shareholders of this offshore industry virtually tax-free.

·         Multinational corporations such as Starbucks, Coca Cola, Total, Ikea, Microsoft et al., can take the resources of developing nations such as Africa while operating as 10-year tax-free startups and then either leave or change ownership to get an additional 10 years tax-free.

·         The exploited poor in Kenya and the rest of Africa must make up the tax loss to the point of losing their homes and facing a tax on every end product they buy including the very milk powder needed for the nutrition of their hungry children.

·         A mere 0.14% of the world’s population -- fewer than 10 million of these citizens who belong to nowhere -- can control 95% of all offshore private wealth estimated to be 21 to 32 trillion dollars at 2010 year-end in a nation-state system fundamentally at odds with the rest of humanity.

·         The Amazons and Googles and Starbucks can present one face to the world—their public face  – while covering up their dark, underground secret side that uses the same techniques as criminals to cover the dirty tracks of their dirty business operations.

All made possible by a pin-striped mafia of bankers, lawyers and big-four accountants.

Globalization these past twenty years has morphed into democracy’s greatest threat.  Which leads me to ask: Why hasn’t Ron Paul told us about this?

Sat, 05/04/2013 - 19:08 | 3530643 Walt D.
Walt D.'s picture

"  Apple pays no more than 1.5% on profits it generates outside the United States, profits that if allowed to flow back into the US would be taxed at 35%."  ...... which would be pissed away by Congress in less than a week. The question you should be asking is where does the money that Congress pisses away go? Where happened to the money that went to Solyndra? Did it just disapeear off the face of the earth?

"The exploited poor in Kenya and the rest of Africa must make up the tax loss to the point of losing their homes and facing a tax on every end product they buy including the very milk powder needed for the nutrition of their hungry children."

Kenya has been receiving overseas aid for more than 50 years - where did all the money go?

Big Government is not the solution to anything.

Why would anyone expect any business that earned money from overseas operations to invest it in the US. Corporate taxes are the highest in the world. The regualtion are stifling. 

Sat, 05/04/2013 - 20:10 | 3530731 JR
JR's picture

Your biases make you blind to the theft of the Congress of the United States by these banker-supported multinational corporations. This travesty is one of the most significant robberies of our freedoms that has been uncovered in years.

Surely, this means more to you than your prejudices.

These tax havens are generated by the banking cartel which owns and operates these multinational corporations and runs interference for them with the parliaments and the congresses and the banana republic tin horn dictators. It all comes back to fiat money; it is the way you can steal the public ‘s money for these bribes.

And you want me to dismiss equal representation for this?

Why do you want me to pay Apple’s tax bill? Why do you want me to pay an income tax of 35% to the IRS, 10% taxes to the state of California, plus SS and Medicare “taxes”?

The U.S. corporate tax rate of 35 percent may be the world’s highest if they paid it like I have to,  “but most multinationals pay far lower rates by using tax-avoidance strategies. Corporate taxes have plummeted as a share of federal revenue from a high of 32.1 percent in 1952 to less than 9 percent now.”

According to the SF Chronicle in 2012: “During that period, payroll taxes have made up a growing share of federal revenue, increasing from less than 10 percent of revenue in 1952 to 40 percent now, while individual income taxes have remained constant at about 42 percent of federal revenue.”

In 2011, 47 percent of Microsoft's U.S. sales were shifted to Puerto Rico to avoid U.S. taxes on "47 cents of each dollar of sales revenue it receives from selling its own products right here in this country," according to Senator Carl Levin.

And according to a recent Senate subcommittee report,  many Silicon Valley giants hold most of their cash overseas, according to financial filings: Hewlett-Packard (100 percent), Cisco (89 percent), eBay (88 percent).

If that isn't enough...

According to the Center on Budget and Policy Priorities on February 14, 2012, the average United States Corporate Tax Rate (2000-2005) was 13.4%.

Smaller business operations constrained to the U.S. are hurt by overseas tax havens that make it harder to compete with these large corporations.

A recent poll conducted by the American Sustainable Business Council (ASBC) and Main Street Alliance (MSA) found some 85 percent of small business owners oppose a territorial tax system, which would permanently exempt offshore profits from U.S. taxation.

This is why nearly 80 percent of small business owners say they are in favor of closing overseas exemptions altogether, according to the ASBC-MSA poll. More than 60 percent also would like to see an end to deferral, a current tax code provision that allows corporations to indefinitely defer payment of U.S. taxes on profits made or shifted offshore.

This special of government protection against competition that you so cavalierly support –  monopoly – is nothing less than legal plunder.

As Frederic Bastiat wrote in The Law, “It ought to be stated that the purpose of the law is to prevent injustice from reigning. In fact, it is injustice, instead of justice, that has an existence of its own. Justice is achieved only when injustice is absent.

And now that Kenya has hit the jackpot and found oil, maybe she won’t be needing those handouts we taxpayers allegedly provide and maybe that big industrial park the multinationals are building on her tax-haven soil won’t be built. That is, if those oil profits too don’t end up hidden somewhere inside ashores one of those multinational-controlled tax havens.

Sun, 05/05/2013 - 05:43 | 3531594 supermaxedout
supermaxedout's picture

Great comment JR. In Europe the situation is comparable. For example in Germany Big Oil pays only marginal corporate taxes despite it sells more than 90 % of all gasoline and diesel consumed in Germany  Big Oil shows in its Profit and Loss statements that the purchasing prices of the crude oil, and the transport and the etc.. are so high that no or nearly no profit was made in Germany.  But the purchase prices are not a Third Party purchase prices. Its a internal prices between different units of the same companies.

btw. I just want to admit that you were 100% wright and I was wrong about the Judea-Khazar thing.

Genetically its now proven (published in December 2012) than the overwhelming majority of the Ashkenazy Jews  (the Jews from Eastern Europe and Russia) is of Khazar origin. While the Jews along the Rhine, in Southern Germany,Switzerland, North France and Northern Italy (which are historically called correctly the Ashkenazy Jews)  are genetically more or less identical with the surrounding population. In these parts of Europe the Jews were simply Jews by believe but not by race. That means I was not wrong  in a comment (which you replied to at that time): I stated, that in Southern Germany only the Jewish religion was nearly exterminated by Hitler while the people are still there, because they were genetically identical with the other parts of the population.  The killing of the Jews in Germany was a only crime against a religion but not against a race. In Eastern Europe it was different because there the Jewish religion and the Kazarian Jews were genetically apart of the surrounding population. I only did not believe at that time the Khazar theory.

The only question which remains for me: Why did the Eastern European Jews adopt the Jiddish language which is clearly the old high German dialect of big parts of the Southern German region (Palatinate, Rhine Valley, Franconia Mosella region). 

Maybe the answer lies in the fact, that appx 450 years ago many Germans from Southern Germany went to Russia by invitation of the Czars to develop complete regions which were empty.

Appx 25 years ago there was a huge wave of these Russian-germans coming back to Germany. By the millions and in complete families. The German language these people were still speaking at home (old Southern German dialect) was difficult for me to understand even I grew up as a dialect speaker in Palatinate. A German from Northern Germany would have not understood one word for sure.  This old dialect is in my opinion very close related to the Jiddish dialect. It has common roots that is my opinion.


Sat, 05/04/2013 - 19:40 | 3530691 Kirk2NCC1701
Kirk2NCC1701's picture

It bears repeating, that the Gov and the Ministry of Propaganda (the MSM) keep indoctrinating the masses that...

(a) Corporate (C-corp) tax avoidance with offshore methods is undesirable but tolerable,


(b) Private tax avoidance with offshore methods is unacceptable, wrong and immoral.

It's amazing how many people fall for this red herring argument, and how many love being Stockholm Syndrome Serfs. [sigh]

Sat, 05/04/2013 - 21:19 | 3530856 den1313
den1313's picture

While I understand greedy governments want ever more funds to cover their incompetence and vote buying I don't want corporations to pay taxes. When they pay taxes, it is just passed along to their customers the same stupid middle and lower class that wants the government "services" in the first place. No, the government should not collect taxes from producing companies. That is how they stay compeditive and everyone in the company already pays taxes. The whole world taxation empire distorts business and cheats the very citizens they are supposed to be looking out for.

Sun, 05/05/2013 - 07:03 | 3531635 Setarcos
Setarcos's picture

Sorry, but you have a very simplistic view.

The best time of US prosperity - from the late 40s to the late 70s - was when tax rates were high for the very rich and corporations.

Then along came tax-cutting Reagan and deficits began to soar, culminating in the tax cuts of Bush Junior - since when deficits have gone ballistic.

You seem to believe that companies (actually corporations) like Boeing and GE are like a "mom and pop" store and are in competition, but in fact they are monopolistic. though will engage in mutual price-fixing when it suits.

Up to you if you do not want such government services as roads and the electrical power grid being paid for with taxation - go live in a wilderness log cabin you build yourself - but please don't defend corporations like Apple and GE paying no taxes for all of the infrastructure they use FAR more than yourself.

Yes governments are wasteful and especially by awarding "defense contracts" to Boeing and GE - because they pay for corrupt politicians - but without a government of any kind, there is chaos.

And that has been the policy of Washington for over a decade, with Yugoslavia, Iraq and Libya having been destroyed and Syria currently being ruined ... so if you really want to live without a functioning government, go live in Libya for instance, or stay in the US and experience the full force of such lock-downs as just happened in Boston.


Sat, 05/04/2013 - 21:49 | 3530924 DoolieDoink
DoolieDoink's picture

In UK the smart public started to boycott Starbucks for this very reason.

As Starbucks also gives money to the state of Israel is an even bigger reason to boycott them !

Sun, 05/05/2013 - 13:17 | 3532204 Dull Care
Dull Care's picture

And they fund groups that support pedophilia.

Sun, 05/05/2013 - 17:30 | 3532743 Suisse
Suisse's picture

The "smart public" should stop living off the dole. 

Sat, 05/04/2013 - 22:23 | 3530988 BarnacleBill
BarnacleBill's picture

I don't want to get anybody over-excited about this tax-haven lark, but I used to be in the game, and am (naturally) still very much in favour of tax-avoidance and very much against the whole bullshit exercise of levying taxes on individuals - especially when those taxes go to maintain politicians, bureaucrats and their corrupt sponsors in the style to which they think they're entitled. Here below, for your delectation and possible amusement*** are two blog-posts of mine of relevance to the present topic. The first was written last August in the middle of the US Presidential campaign, the second a few months later as a personal reminiscence. Enjoy.

*** I don't really talk like that; I'm just teasing.

Sun, 05/05/2013 - 05:51 | 3531600 Setarcos
Setarcos's picture

Interesting anecdotes and I get your sympathy for ripped-off actors, musicians, etc. - I recall the tribulations of the Rolling Stones - but these are real individuals/persons, whereas - as the documentary points out - the gross tax evaders hide behind corporate shells.

I don't see how you can apply the same rationalizations and/or justifications to Apple, GE, etc. as you do to artists ripped off by their agents, record companies, studios and whatever.

Bottom line is that these corporations benefit most from tax-funded infrastructure and the military enforcers of what enables their global reach, but they avoid paying for any of it - the burden falls on the average person.


Sun, 05/05/2013 - 06:51 | 3531629 jonytk
jonytk's picture

ANyone can evade taxes nowadays, just or okpay or better perfectmoney , they offer a nice return on your money on the long run. Stocks are for the HFT and gov bonds, well, unless you buy Spanish debt online, gov bonds have no return...

Sun, 05/05/2013 - 07:19 | 3531647 Setarcos
Setarcos's picture

Better "perfectmoney".

Yeah right, they want all of your personal details - the introductory blurb goes:


"Attention: it is strongly recommended to enter the real profile information.

For registration in the system it is necessary to enter your name. The Name can be any combination of letters. The Name is not a login to enter the system.

While completing registration it is necessary to enter the actual postal address of the user which is necessary for future communication such as notifications, money transfers or any messages to user.

It is recommended to indicate a telephone/fax number to use the SMS authentication service in the future.

In the "Account type" field it is necessary to define the social status of the customer being registered.

After the completion of the field "protection from automatic registrations", it is necessary to carefully read “Terms and rules of the system use” and then make a choice whether to accept or decline these conditions according to which a user can become the customer of Perfect Money."

That is a direct quote from the site.

Best of luck if you go with jonytk ... or presumably or okpay.

If it smells of a scam and too good to be true, then it probably is a scam.

Sun, 05/05/2013 - 15:30 | 3532547 jonytk
jonytk's picture

Ejem, think what you want, they are used as a (cheaper) paypal alternatives in countries where paypal is not operating and they are actually prefered as payment in countries with very high card-chargeback/stole ratio. This methods of payment don't have chargebacks. And will not report to the IRS since they operate from fiscal-heaven countries.

As Perfect money it's a liberty-reserve clone and okpay i actually transfered money from my bank and they ask me for my passport !, so i trust them, they ARE safe as payment methods, i'm just saying, they are a de-facto fiscal heaven, (Iran uses it) easy to setup from your computer.

That said, as with bitcoins, you HAVE TO be in a secure enviroment, if you have a virus it's going to steal your passwords/wallet for sure.

Sun, 05/05/2013 - 09:20 | 3531775 Max Cynical
Max Cynical's picture

If these tax avoidance schemes are such a problem, it only seems logical that taxing authorities should modify their taxing structures to require a fee/tax on gross revenue (say 2%) rather than net profits. Stupid politicians...owned by big business...will never solve this "problem".

Wed, 05/08/2013 - 09:03 | 3540563 saycheeeese
saycheeeese's picture

fighting the over-taxation  since governement size and costs  have become horrendous... is part of a fair game.  Tax avoidance etc... has always been part of the game so gouvernement should ask themselves... why.... tax optimization structure are sought so actively  and should ask themselves... WHAT IS A FAIR TAX RATE !!???   and what is a fair size and what is an efficient public service network?

Most of us do no mind to pay taxes...  but a fair rate. 

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