What Are Tax Havens And How Do They Work?
ฝัง
- เผยแพร่เมื่อ 14 มิ.ย. 2024
- Since the leak and subsequent complete disregard of the Panama Papers and Paradise Papers the concept of Tax Havens have been thrust into the limelight
Today, roughly $8.7 trillion is held in off-shore accounts in tax havens across the globe. But what are tax havens? How do they work and how do they mess with the global economy and regular people’s wallets? Well, Let’s Find Out.
Follow me on twitter
/ cogitoedu
Or Reddit
r/cogitoedu
Or Facebook
@CogitoYT
IF YOU WOULD LIKE TO CONTRIBUTE TO MY PATREON PLEASE SEE HERE.
/ cogitoedu
MERCHANDISE
teespring.com/en-GB/stores/co...
SOURCES (Affiliate Links)
The Hidden Wealth of Nations: The Scourge of Tax Havens, amzn.to/2RX3jqK
Other Sources
Information on Kaunos: etheses.dur.ac.uk/2632/1/2632_...
$8.7 trillion source: gabriel-zucman.eu/richesse-cac...
Panama Papers trends: trends.google.com/trends
55 tax havens across the globe: repository.law.umich.edu/cgi/...
2018 Top Tax Havens: gabriel-zucman.eu/files/TWZ201...
Google 2015 15.5 billion: www.nytimes.com/interactive/2...
End world hunger: www.ifpri.org/blog/multibillio...
Average US homes: www.cnbc.com/2017/06/29/what-...
$1.6 trillion offshore: www.oxfamamerica.org/static/m...
$3,333 each: content.time.com/time/business...
8% of the world’s wealth: gabriel-zucman.eu/files/Zucman...
European Debt: www.statista.com/statistics/2...
European GDP: en.wikipedia.org/wiki/List_of...)
Developing Countries Wealth Off Shore: gabriel-zucman.eu/files/Zucman...
Nordic Countries: www.vox.com/2017/6/7/15745978...
$32 billion annually: gabriel-zucman.eu/files/Zucman...
SOME SFX TAKEN FROM AGE OF EMPIRES II
MUSIC BY www.epidemicsound.com/
THANKS TO pixabay.com/ AND vecteezy.com/ FOR MANY OF THE VECTOR IMAGES
All images are taken from Creative Commons or used in accordance with fair use. If one of your images has been used and I have forgotten to attribute please contact me by email or on twitter I will instantly resolve that.
Why have you scrolled this far down? No one reads down here.
#Taxes #history #taxhavens #panamapapers #finance
Music by Epidemic Sound: epidemicsound.com/creator
I don't know why rich people always buy yachts when Jet Skis are clearly the superior watercraft. Hypothetically if you had a billion dollars all of a sudden what would you do with it?
Regardless of whether or not you think they are incompetent doesn't matter. The money is still owed. If someone owes you money it doesn't matter if they think you'll spend it on something stupid, they still owe you that money and you'd be annoyed if they didn't pay you.
Build a business. You need money to make money, and money is needed if you want to make cool things down the line. What I consider cool? Videogames, animation, and manga of the Japanese variety.
@@CogitoEdu but why should WE(or companies) pay for it?
Would set up a homeless shelter that holds lectures on socialism and sponsoring indigent families for the education of their children.
Would by new shoes,skis and bike 🤔
It was really depressing that the respective countries didn't conduct full fledged investigations on the panama and paradise papers on the concerned organizations and people, makes you suspect they have an incentive not to prosecute tax avoiders using havens.
Most if not all those implicated in those data breaches are politically well connect people. They've purchased the politicians. They've captured the regulators. No doubt some of those politicians and regulators are themselves implicated in those papers.
Called lobbyists which put millions of dollars into politicians to be re-elected as long as they help their interests.
Tax avoidance is LEGAL!!! It’s business
They did though.
It'd be better if they didn't, all of those governments use the taxes they steal for absolute evil these days. Tax evasion is a duty.
Technically it’s legal so there’s no reason to snoop around there lol
You have forgotten the second tax heaven in the world: The USA. States like Delaware has very little to none taxes and banks doesn't provide information of their non resident clients to other countries where they own taxes.
Good for them.
You sure would not want to live in Delaware it's either all country or all ghetto
Deleware has people in it?
21% federal tax
@@gj8510 LLCs are disregarded entities and if you are not doing the work of the company in the US the tax rate is 0% for most of the companies as far as the US is concerned if the owners are nonresident aliens.
Eat the rich?
In all seriousness though, your last appeal about how the rich should cooperate with the society that made them rich and pay their dues really reminds me of Disney. They were quite happy to take all the old public domain folklore tails and squeeze profit out of them, but as soon as their own creations were on the verge of becoming part of the public domain and thus enabling the wider society to make use of them (as Disney had done with the aforementioned folklore), they threw a hissy fit and pressured law makers into changing the law. Now try to host Micky Mouse in your next video without any fair use provisions and see how long your video would remain up.
This is basically the same underlying selfish behaviour with the high-income tax avoidance, where the individuals are happy taking in all the benefits, but are utterly horrified at the notion helping to keep the infrastructure running they relied on to get rich for other to use.
Disney is the evil empire. I don't get why people still support them. I've been boycotting them since 2010.
@@PyroNexus22
Howstly I can't recall the last time I supported Disney. But our parents probably bought enough for us as children that Disney isn't going to miss us.
In all seriousness. Eat the rich.
Need to publish a cookbook on how best to prepare meals from the flesh of the rich. I'd include a chapter outlining torture as a means to sweeten their meat and soften their bones. A quick death is too good for them.
human nature
Jimmy was definetely a Fyre festival attendee
You win at comments
If I was a billionaire, I'd pay off Greece's debt and become the hero of Greece, so that my statue would be erected beside the legendary greek people of history, like Leonidas or Alexander. The parents would tell their kids stories about my great financial adventures and with time I'd penetrate into the greek mythology and culture. Maybe they'd even call a city by my name. That would be one worthy investment.
😆😃😃Sounds funny
@@cookiedove659 send help
@@cookiedove659 I dunno, like... figure it out
And then your statue would get smashed up by some commie mob who didn't even bother to read the dedication. Wouldn't that suck?
Rich people can easily raise ten status of themselves in greece without paying any debt. Rich people use a lot of their money just ti remain anonymous
1:50 A glitch in the matrix
Jimmy just has some wicked dance moves. Nothing to see here folks....no mistakes we made. :D
@@CogitoEdu He just snorted a bunch of coke he bought with his offshore wealth and now he's high af
Yeah that sounds about right
Super simple yet informative issue on a huge topic! Def gunna show to my students!!
Have you noticed that pretty much all the havens where part of the British empire
Wait the former territories of the British empire are tax havens?!🧐😳
You must happy to know about the Private City of London Corporation
1:48 That is one depressed jimmy
Socialism tends to make people depressed, whether they're living in it or not.
This video is great. Will show to everyone.
Finally a video that explains the concept of shell companies clearly. Good job ma man!
I love how Australia is upside down on your map🤣
Thank you so much for this well researched video. This is such an important issue. It's hard for people to imagine how much money the state and therefore the people loose trough tax evasion.
Tax evaders need to be called out!
Meh. Even if they did manage to steal all that extra money they'd only spend it on crap. The more tax evasion the better.
You didn't earn it
@@samahndal You're telling me that Jeff Bezos works so hard he schould get a couple mil. a day?
How can a human beeing work so hard?
Nah, the fucking amazon employees worked for it and they don't even get proper pay for it.
You gotta acknowledge that they wouldn't make this kinda money if it wheren't for all the parts of society they *didn't* pay for (e.g. education, infrastructure etc.).
@@derkanal1908 1. You're making an argument for forcing bezos to pay his workers more, not the government.
2. That argument is wrong as well.
3. Yes, services provided to all by collaborative agreement through the government like roads and infrastructure are mostly a valid form of usage for taxes collected. However, that represents only a small fraction of money already collected through taxes. By that calculation Amazon has paid many times over for the services rendered by the government.
Anything else?
Well their employees should also get a tax break right
I'm rewatching Continuum... and knew it was finally time to watch this epsiode!
5:42 Australia is upside down
I'm so dumb, I had to pause and rewatch bits of this video multiple times to just understand the schemes
You are not alone!
If I actually have to wallow in existential dread, In would happily take it in an Irish accent- so warm and clear- never knew English could sound so good
If only the governments would put all that money into good use
Most underrated channel on youtube
Most underrated channel ever
Look at that graph
Can't steal something that already belongs to you.
*_That’s alot of money_*
Most of the UK government have millions, mostly ‘old’ money in tax havens.
More please!
Has anyone else noticed that Australia is always upside down in his maps
Dude, nice quality vid. U deserve more subs n views. I think ur videos need to be more click baity coz that's what gets the views Rollin initially. Have u tried to share or try to tell about ur vids in other places with similar content?
Also try to talk about some trending topic.
Just sharing my two cents from what i have seen over the years on youtube, u deserve the views n subs for this type of quality.
Good luck my man.
This video annoys me but not because of the tax avoidance (legal), but the attitude towards it. So it’s ok for business owners who worked hard to pay corrupt government 10%, 20%, 40% or 35% tax? So they can squander it on private jets and preferential contracts to their cronies? Don’t blame the businessmen, blame the governments. Have you seen how wasteful government budgets and spending are???
Normally the governments cronies are business owners. That's why they're allowed to avoid taxes all the time.
@@CogitoEdu separate the two. Government and business owners. In one hand as you suggests have corrupt politicians serving special interests and the other hand are business owners maximising profits using every legal loopholes available. The real ‘crooks’ here are the government and its politicians. Can’t blame business owners (as this video implies they are bad people paying little corporate tax), when in reality they didn’t set the rule of the game and set out what they got in business in the first place - that is to retain profit and its maximisation.
@@111Econ Why don’t you separate politics and corruption then.
Your logic makes no sense.
thank you for teaching us how to properly taxdodge
tree hundred and turty tree . love it . love the content too.
so at 2:25 when food and stuff purchase fictional services from the shell company, is that part legal?
Please make more videos
Had an ad interrupt the video at "we should ask the rich.." towards the end.
cogito why is australia upside down in the video ps really good video
You've TOTALLY missed why Switzerland benefits from its status: it's printing VAST amounts of 1000 Franc notes that cost them zilch to crank out -- and are then sold at face value to tax cheats -- with the notes crammed into Swiss banks -- and INDEPENDENT vaults all over Switzerland. Yeah, all of their regular banks have LONG sold out their vault box space -- so folks have built vaults solely for the express purpose of holding Swiss currency in the aforementioned 1000 Franc size. How many notes? Switzerland has printed more 1000 Franc notes than 1 Franc notes!!!!! No wonder the Swiss can live with low, low taxation.
I pressed like and found it informative. But right now, at 55% through the video, I am overwhelmed with a sick feeling in my gut and just cannot finish it. Perhaps I will come back. Just, damn...
I did that too I thought I was the only one but I cope with all this by making a imaginary situation in my mind about someone or me fixing the situation and I feel better after that. I started doing this when I started watching news I couldn't sleep after what I heard so found this method.
So if a country hikes up import duty, and zeros up income tax and export duty, does it become a tax Haven ??
5:58 neo-colonialism intenstifies
Here's a map with new countries! Now you can't tell who they are being pillaged by.
Got me thinking of Ozark
Did you notice the upside down Australia at 5:40 ?
IT DESERVES MORE VIEWS! WHY IS IT 1 YEAR AGO BUT ONLY HAS 3K LIKES?
What the heck happened to Jimmy when he pulled up to his desk?
Fyre festival flashbacks
"tree tousand, tree hundred and turty tree"
Being a tax haven does benefit the country. It results in their banks haveing money to invest, which results in wealth being available to spend on investments in infrastructure and business, which results in jobs, which results in economic growth.
It is easy to think that there is no benefit because there is no direct tax benefit for governments, but the reality is that the government is seeking an indirect benefit as a result of economic growth that benefits its citizens, not a monetary growth of its budget.
What does Australia being upside down on the maps mean?
5:42, 7:03, and 7:19
That a joke
They're down under
And these are the guys who rule the world.
Ever heard a rich person tell you that you can make a difference? Imagine how much of a difference they could make.
Oh wait, they usually tell you that they aren't as powerful as you think and can't do anything.
So...
In Indonesia to close an offshore company from a state company itself require a huge effort (read:Petral)
awwwww sheeeeit new cogito. click.
Praise be
You do great vdeos Cogito.
However here you fail to mention why this problem will never be fixed.
It's because all (or most) those able to do anything about it have most of their money in tax havens. Or profit personnaly enormously from them.
Good for them.
@@peterhoulihan9766 yeah good for them instead of feeding millions and helping society they instead buy ten thousand Ferraris
@@MohammedAli-hl4mr Lmao. Where do you think your money goes when the government gets it? They spend some petty cash on charity to look good for the press then spend the rest on themselves and their friends.
@@peterhoulihan9766 You sure you’re not talking about billionaires?
@@wannabehistorian371 Yes. And "billionaires" are a red herring, there isn't enough of them to matter unless you count some kind of imaginary "net worth" guesstimate.
I like how you said 3,333. Like a forest
Plot twist: All companies exist only on paper
I wish people could understand that 1. Tax is not theft, without paying taxes we wouldn't have roads, parks, public hospitals, public schools, etc. that people desperately need, and 2. Tax evasion is only done by the rich and it only benefits them, it screws everyone else. I'm surprised by some people commenting here that tax is theft or agreeing with tax evasion, such an ignorant opinion. Unless they're evading taxes and they agree with it only becuase it benefits them?
Anyways, great video as always!!!!
It's really easy to say that those that have should give it away when you yourself are not one of them. Governments and states should instead seek to optimize both the interests of those who have managed to gain so much wealth AND the interests of the state, you can't just force people to pay an inordinate amount of their wealth, because those who are wealthy did not become wealthy by making bad business calls.
You have to make policies which negotiates with its citizenry, not just steamrolls it aside for whatever temporary issue the state have given a ton of attention for the moment, even the very richest deserve that.
@@Iarlen so what your saying Is that those who have fore whatever reason more money should be treated better and with more rights because they are something better than the ones who have not managed to gain, again fore whatever reason, much money?
@@havaldderwanderer6861 No I'm saying that will be treated better and with more rights because only with their support those in power can maintain in power. That's how it has always been, that's how power works.
One shouldn't be blind about, instead one should aim to make as many people as possible necessary to pander to to remain in power.
Otherwise you get a situation like in Sweden ( where I live) where the middle class is paying massive amounts of money for a welfare state that is now being redirected unsustainable to a very rapidly growing unemployed and unemployable(at least for a while) base of migrants that don't pay in to the system. While nearly every single tax the rich would pay is nonexistant. We have a great tax system to reward those who already have money to keep more their money because otherwise they would simply move when the burden was too much and the state would hold less ability to make change in their favour.
What I mean is that in Sweden the rich, aristocrats, unions and businesses, all enjoy massive ease in maintaining their wealth while the middle class not only pays for its own expenses, but also for the people brought in to replace them as a new voter base for the socialdemocrats, as cheaper and stupider(less chance to complain about brutal measures) labour for the businesses and the aristocrats get to feel like they're helping people without actually taking it on themselves to do anything that helps. Binocular saviours.
@@Iarlen OK so what I'm reading out of that text ist that your saying we should just return to an aristocratic and feudal state system because everything else will not work and that is, sorry for my words, just stupid these system bring much less benefits then you might think. And what you also don't seem to get ist that these taxes don't aim to make rich people poor they are there for helping the community and making a better state for all citiciens. But your idea is dommed to help the system to degenerate in an autocratic one that suppresses the people and is dependent on the good will of some feew to help other people, and if they decide that they not want to help them but instead focus on themself the hole system is fucked.
Nice to see you living in dream land if you don't think taxation is theft. Tell that to the US government with it's 21 trillion (and possibly counting) in undocumented and untraceable MISSING funds. The Feds have never been audited (first "attempt" within the past few years). Funny enough, if you look back at history, personal income tax was only suppose to be "temporary"... guess what stuck around.
Only fools would buy into the argument that we have these public services from "taxes".
So what the heck do tax havens get out of it? They take nothing in taxes. They can't build themselves up when they take no revenues? Book keeper jobs?
Generally speaking they get a whole bunch of tax revenue. Ireland isn't a tax haven because it doesn't charge tax - it's a haven because it charges lower tax than other countries.
The really 'dodgy' tax avoidance tax havens are more about corruption but it's a bit ... naive(?) to lump together those with all the places that just pay less tax. London is included in this list purely because it allows shell companies to buy property (which they pay tax on).
Only dealing with the 'dodgy' tax avoidance would bring those big numbers way down though and make much less of an impact.
They can invest it till they have it. Stuff like stocks or something. That's what banks do probably.
"So what the heck do tax havens get out of it?"
They do charge taxes, they also usually require some local investment to consider a company tax resident.
" They can't build themselves up when they take no revenues?"
Imagine thinking that the only way you can build anything is with theft.
I'm surprised Facebook is not on the list
Malta is not really a tax haven... we only have slightly lower taxes than the rest of Europe. Our top politicians themselves went to an actual tax haven - Panama - and it created one of the biggest national crises in independent Malta.
How is the Netherlands a tax haven? It has huge social security tax and high dividends tax...
Ah yes, the old way of Not-being-able-to-tax-the-people-who-actually-have-money. Works everytime
6:01 why is aus upside own? easter egg??
Tax havens are so crucial for the world
6:16 why is my country ( australia) upsidown
Well isnt that obvious?
A favour to Australians. You can let your arms rest from having to hang on to keep from falling off the bottom of the world.
Because you're down under
I totally agree with taxes, but my country’s corruption is so obvious that it’s better to avoid taxes and keep it in our pockets to build the society yourself.
In fact, private schools and hospitals is thriving here while government ones are going backwards.
Although I also don’t ignore the fact that this will just increase the wealth gaps of society
Yup, better to keep in your own pockets than in those of corrupt politicians.
Thanks of saying Trinidad and Tobago correctly don't know we are a tax haven.
I do not think ancient cities had a way of measuring income or net profits. they could measure transactions and incoming freight.
do shareholders own the money in these tax heavens? For example, apple?
Apple uses Jersey, UK as its tax haven.
Rich people?
*John the Cappadocian joins the chat*
What about Delaware
Companies and millionaires exist by the grace of the people. No one can make money in a vaccuum. It's only logical that they give back to the society that made them successful in the first place.
and they dont
the people need to bring back the guillotine.
@@CarFreeSegnitz Nope, we need to bring back helicopter rides.
Now give back as in "donate" and "aid human progress" cuz a lot of rich folks do that but give back as in "the gov coerces them?" Then no, that's immoral.
Well, the rich became rich because the people liked their products and bought them. It is the people's fault, not the Rich.
Why is Australia upside down in the map?
Kaunos similar to Lithuanian city Kaunas
Tree tousand tree hundred and tirty tree dollars.. haha
what I really want to understand is why, I mean why do they want those extra billions of dollars that they would probably never use
Oh wow I thought tax havens was more sophisticated or noble than just literally money laundering
u forgot one more tax haven: City of London
Really anywhere is a tax haven if you have the balls.
If I could I would create a tax haven than tell everyone the companies that are using it.
The WEF is reporting on an effort to put an end to all the b.s.
We'll see how that works out.
Sept. 2021
Oh what a surprise, it's relevant again. Who'd have thought uh?
Tree tousand tree hundred and tirty tree.
Ohhhhhh
Recommended Readings:
Hans-Hermann Hoppe.
Austrian school of economics.
Democracy: The God That Failed.
The Anatomy of the State.
That's bullshit, it's illegal to hold a shell company like that and declare expenses for services you didn't really get. Also those companies are owned by the same person, which means the money stays with the same person and its not a real expense, so he still has to pay tax.
Why don't they reduce taxes? Asking out of curiosity
videos that radicalize you
Imagine if developed countries had low enough taxes that companies were incentivised to reinvest rather than avoid taxes by sending the money elsewhere.
If you're theory worked, then all the top companies would have been created & flourished in tax havens & low taxes countries... They don't.
They thrive BECAUSE of the society they are from: with their dammed socialist taxes that lead to human capital with high levels of education & healthcare & roads & services etc. Etc.
Don't you hate it when reality gets in the way of your delusional spoutings.
Don't pay taxes, kids
why cant we have the money even in the caymans
4:02 🌳🌳🌳 🇮🇪
The problem isn't that some countries are tax havens; the problem is the rest of the countries aren't.
Why is Australia upside down?
Because they're down under
Truly speaking, not many government is reliable and the money paid as tax is to fill some corrupts pocket... Actually tax looks more like stealing nowadays not the other way around 🤣 and this s sad...
How tf is this even legal, let alone possible?
#yang2020 #yanggang
So I’ve been pondering about this idea so might as well put it out there since it’s relevant to this.
What if we just lower the Rich’s base taxes by 3-5% but add a ‘contribution tax?’. So basically this contribution tax is a tax only for the wealthy. They can put in whatever much they want but they decide which sector of the national budget to put it on. So it’s basically more of an investment to a sector of a budget...
So for example, perhaps company X would pay their contribution tax more on Infrastructure since the Infrastructure built would benefit their country more?
Then at the end, there could be a top 10 contributors to each sector of the national budget and the wealthy gets recognised by the general public of their contribution to the nation. This not only benefits the company who gets massive publicity but it also benefits the nation which now gains more taxes albeit less control of the national budget allocations.
They’re currently stashing their money in tax havens to avoid taxes. You really think they’d pay more under your proposal? Someone such as Bill Gates may pay, but the vast majority of them wouldn’t.
They are obsessed with hoarding wealth and are destroying ecosystems and communities around the world....but you think they’ll volunteer paying taxes? 😩😂😂😂
Most of all governments simply suck at managing funds, and wealthy people know that, so the money anyone would spend on a proposed "contribution tax" would go to private charities instead and it would probably be better that way
Sweden tried it, very few people paid any extra. If they have enough money to spend on extra taxes they probably have more sense than to give it directly to the government.
This is where we apply cryptographic tracking of financial assets. :) Tax havens die.
Cookies4Wookiees depends on the system in question, as most crypto while being transparent(and anonymous )have no mechanisms to exert control by a third party
And this is where people start adopting cryptocurrencies: Socialism starves :)
@@peterhoulihan9766 stopping rich turds from siting on piles of gold and adding hundreds of cars to their massive collection that they don't need and reinvesting that money for the betterment of society how evil of us.
@@MohammedAli-hl4mr Even if they were sitting on a pile of gold, how would that affect you? All it would do is make the remaining gold more valuable and allowing it's owners to use it more effectively.
As for reinvesting in society, I see plenty of business owners doing that, whereas governments seem far more interested in giving themselves pay raises and buying the next election.
It won't work. The elites that run those developing nations won't allow them, communist.
5.50 Russia isn’t coloured as part of Europe 🤔. Why ?
Most of it is in Asia I guess
This would be avoidable if governments actually used the taxes for what they said they'd do. Instead, most taxes go to fund useless programs citizens don't want or they go straight into the pockets of politicians that have been in office for decades.
If I pay for 1 or 2 golf club memberships and the election campaign for this or that politician that's still cheaper for me than paying tax. So, no. My buddies in the legislature will not make laws that actually work. Have a good one and remember: If you're out of bread, just eat cake.
Eat cake?
What?
What is the incentive of being a tax haven country?
You earn tax revenue. Ireland is a tax haven because it charges lower tax than others (not because it doesn't charge any). London seems to be included in this list purely because it lets shell companies buy property (which they then pay tax on).
A whole lot of companies paying you a little bit of tax gets you more money than a few companies finding ways to not pay you high taxes.
Seizure Jimmy 1:50