How Do the Super Rich dodge Taxes

Some people in the world are very rich, so rich that they’re often called or referred to as the “super-rich.” And, while you might think that these individuals pay a ton in taxes, that’s not always true.

Many of these super-rich people know how to use the tax law and its loopholes to their advantage. Thus, they sometimes end up paying nothing or close to nothing in taxes. Believe it or not, there are more ways to achieve this goal than you might think.   

Trust Freezing

Sometimes, the super-rich will engage in trust freezing, which is transferring their assets to an heir while avoiding taxation in the process.

They often accomplish this by trading common stock for preferred stock and then living off the dividends.

Overseas Accounts

It’s also very common for rich individuals to have bank accounts in other countries. Conveniently, these will often be countries with very low taxation rates, which means their money ends up being taxed less, and they end up keeping more of their cash.

Shell Companies

Some people even create “shell companies,” which are companies that aren’t real, except for on paper. They use these ‘companies” to funnel money and dodge taxes. And, since the company legally exists, they often don’t end up getting into trouble for this loophole.

Whether or not you agree with these methods so common among the rich, there is one takeaway: you can use the tax law to your advantage if you know what you’re doing. And, best of all, you don’t have to be super rich to do this. You simply need the help of someone who knows the tax laws inside and out and who can help you navigate the complicated tax laws to your advantage.