So this is the biggest breaking news at the moment; the panama papers leak from Mossack Fonseca. News agencies have jumped on this thing like OMG; it’s the end of the world. When really; if we look at the structuring they are all taking advantages of knowing the laws in different countries to optimize taxes.
Newspapers everywhere are trying to say if you don’t pay the super high taxes you are supposed to you are a criminal. Why is optimizing your taxes by knowing the laws illegal? It’s like saying if you optimize campaigns and don’t just buy everything on CPM basis; you are defrauding Google or Facebook Ads!
I was lucky enough to stumble upon training materials last year on international tax planning from a university and learned how taxes really work and how if you know your stuff; you can effectively minimize the taxes you pay.
Google and Facebook both take advantage of this thing called the Double Irish and the Dutch Sandwich; which in turn has them paying about 1% of taxes (if that even) on all the billions of profits they generate. So let me ask this; newspapers are going crazy about Putin avoiding taxes on billions; why aren’t they involving the big fortune 500s that have their offices in Ireland – hell they do the exact same thing.
What are your thoughts?