Tax evasion is illegal - a crime; tax avoidance is not. Like the accused the taxpayer is given all the means available to him to lessen and/or not pay tax at all. Like capital gains tax or sales tax will not be imposed unless you sell the property.
So when you have a good tax attorney or accountant, you lessen taxes or not pay tax at all.
We used to have a business partner. We built houses for him which was taken out via HDMF through the bank which he heads.
One time I happened to see a BIR receipt only 4 numbers reportedly to be the income tax payment of the said partner. I was not even 1/10 of may WT monthly. How did he do this? (For one the BIR tax commissioner is his neighbor at the village. ) His wife owns 3 expensive houses in that village and 7 other locations at CBD.
No wonder they are rich and getting richer.
Like the new billionaires. They hardly pay any taxes. They get paid $1 a year, for their spending money, and luxury they borrow against their shares of stock which are so high in value. As for the interst payment, they get it from dividends or unavoidable selling of small amounts of shares.
Do they pay taxes. Nah They are not selling their shares of stocks yet.
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