Your Email

Pasword

Well, the topic here is a bit abstract. Rich people are known rich because they have assets that hold a value. It is important to understand that rich people do not have a huge pile of money saved somewhere that they hide from people. However, in the recent times there have been scams like Swiss bank and Panama papers which reveal that rich do have ways to hide their money from the common people. 

You listen about Forbes list of billionaires and other list; such lists don't talk about their actual personal cash wealth. It's based on assets. So a 'billionaire' on the list, doesn't mean they have a billion dollars in cash sitting in the bank. What they do have is leverage based on those assets. For example, Mark Zukerberg (C.E.O Facebook) is a billionaire because the percentage of stock that he owns, if he were to sell it all today, would be over one billion US dollars. Rich people can hide their true wealth but the estimates will be close because most rich people are either in the public eye, or own public companies which require full disclosure of wage and percentage of ownership. 

There are people in this world who have amassed great fortunes that will never show up on any list. If we are talking about wealthy people who earned it, they typically don't commit outright crimes. So they don?t hide their money, they will and do put their resources in various banks and investments in many countries, typically in the same country money is earned. Since rich people have usually invested in companies. 

Money Laundering- People get rich by stealing from the taxpayer, so they have a vested interest in hiding their money so the people can?t find it or even trace it. These are the people who stole the money in the first place and used it for bogus companies it is obviously money laundering. The ultra-rich, people whose net worth is more than $45 million, are ten times more likely to evade taxes than the average citizen, according to the research. 

Fraud according to the Panama Papers-In 2015, an anonymous source contacted the Süddeutsche Zeitung (SZ) newspaper in Germany. This person offered to hand over internal documents from a law firm in Panama called Mossack Fonseca. The unknown insider leaked 11.5 million files detailing a shadowy ?global industry led by major banks, legal firms, and asset management companies [that] secretly manages the estates of the world?s rich and famous.? 

Süddeutsche Zeitung shared the data with the International Consortium of Investigative Journalists (ICIJ). The information revealed that politicians, celebrities, and professional athletes along with drug dealers, fraudsters, and dictators have been hiding money in offshore accounts. 

Mossack Fonseca created a shell company for each client. Such corporations do not conduct any business but they can open bank accounts and handle money transfers. The actual owner of the phantom company is concealed. SZ says ?the Panama Papers provide data on some 214,000 companies.? 

Tax Havens- Britain played a leading role in creating modern tax havens. In 2009, the members of the G20 got all angry and promised to shut down the world?s tax havens. Locations such as Barbados, the British Virgin Islands, the Cayman Islands, Guernsey, Jersey, and the Isle of Man were encouraged to set up financial services industries. They came up with was loosely-goosey banking rules, client secrecy, and a no-questions-asked policy about where the money was coming from. So, it was how the rich hid their money. Tax havens hold 10 percent of global GDP. 

Establishing companies that pay little or no tax- Look at some of the multibillion turnover companies and their owners that pay little or no tax. You just need to open companies in a few different jurisdictions and you are in line for sending your profits somewhere you pay very little tax. 

Russia (60 percent), Europe (15 percent) and other nations hold a significant chunk of their GDP offshore, whereas Scandinavian countries own just a few percent of GDP. 

To tackle all these fraudulent activities the government has really tightened down on how much one can move overseas at one time. Now a days, with the new regulations, it takes over 30 days and a mountain of paperwork to move a large amount of funds and that?s if you can find a bank to do it because of the new regulations; purchase of properties held in trust accounts; bank accounts held in trust accounts; hard gold and silver held in a safe; stocks and bonds held in a trust account.           

© www.newsandstory.com