Lottery Jackpots And Tax HavensPrev Topic Next Topic

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If you won a jackpot would you set up an account in a tax haven?

Yes

[ 6 ]

[ 23.1% ]

[ 20 ]

[ 76.9% ]

Total valid votes

[ 26 ]

Discarded votes

[ 3 ]

myturn

Bondi Junction
Australia
Member #57,240
December 24, 2007
1,102 Posts
Offline

Apr 7, 2016, 4:55 am

You may have read about the Panama Papers: It would appear that Leona Helmsley was right, when she said, "We don't pay taxes. Only the little people pay taxes."

What are the Panama Papers?

The Panama Papers are an unprecedented leak of 11.5m files from the database of the world’s fourth biggest offshore law firm, Mossack Fonseca. The records were obtained from an anonymous source by the German newspaper Süddeutsche Zeitung, which shared them with the International Consortium of Investigative Journalists (ICIJ). The ICIJ then shared them with a large network of international partners, including the Guardian and the BBC.

What do they reveal?

The documents show the myriad ways in which the rich can exploit secretive offshore tax regimes. Twelve national leaders are among 143 politicians, their families and close associates from around the world known to have been using offshore tax

We all get a lot out of lotteries!
myturn

Bondi Junction
Australia
Member #57,240
December 24, 2007
1,102 Posts
Offline

Apr 7, 2016, 6:29 pm

UK PM finally Admits Owning Shares In Dad's Offshore Fund

David Cameron has admitted for the first time he did hold shares in a controversial offshore fund set up by his late father.

The Prime Minister has faced questions this week over his family's tax affairs after details of Ian Cameron's investment fund were reported as part of the Panama Papers leak.

Mr Cameron's admission that he owned, sold and made a profit on shares in Blairmore Holdings before he became PM has prompted calls for him to resign.

We all get a lot out of lotteries!
music*

Fresno, California
United States
Member #157,849
August 2, 2014
3,959 Posts
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Apr 7, 2016, 6:57 pm

WOW!! Everything hidden will be revealed. Sunlight on crimes makes criminals pay.

"We are all in this together!"
Romancandle

Upacreek
United States
Member #136,300
December 8, 2012
432 Posts
Offline

Apr 7, 2016, 7:59 pm

Quote: Originally posted by music* on Apr 7, 2016
WOW!! Everything hidden will be revealed. Sunlight on crimes makes criminals pay.

Yeah right... Wall Street bailed out... Sun couldn't have shown brighter on those crooks and nothing happened .

-RC
Dreaming Gemini

The Windy City
United States
Member #171,683
January 10, 2016
63 Posts
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Apr 7, 2016, 8:35 pm

I barely trust my money in this country. I would have a very difficult time trusting it offshore.

- Wanna win at least a couple commas
Stack47

Kentucky
United States
Member #32,651
February 14, 2006
10,301 Posts
Offline

Apr 7, 2016, 9:41 pm

Federal taxes (25%) are deducted from winnings over $25,000, but the winners could owe up to 14% more when they file their tax return. But after that there is no Federal tax liabilities on those winnings.

Based on some of the comments in the "after winning a jackpot" threads lots of people don't understand 25% in Federal taxes will be deducted from their winnings regardless of the number of tax lawyers they bring with them to lottery headquarters. Tax havens might come in handy after investing the after tax winnings, but basically useless for the initial prize.
savagegoose

adelaide sa
Australia
Member #37,135
April 11, 2006
3,341 Posts
Offline

Apr 8, 2016, 3:54 am

It is legal to minimize taxes,.It is legal to move money off shore th lower taxed locations. Is It moral? that depends on your morals.

" Still swinging, still missing "
2014 = -1016; 2015= -1409; 2016 = -1171; 2017 = -1257 ; 2018 = - 1380 = TOT = - 6233

keno historic = -2291 ; 2015= -603; 2016= -424; 2017 =-427; 2018= -223 TOT = -3968

:
music*

Fresno, California
United States
Member #157,849
August 2, 2014
3,959 Posts
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Apr 8, 2016, 10:42 am

Quote: Originally posted by Romancandle on Apr 7, 2016
Yeah right... Wall Street bailed out... Sun couldn't have shown brighter on those crooks and nothing happened .

I am also referring to the next life in either Heaven or Hell. The criminal's soul will spend eternity in one of the two destinations.

"We are all in this together!"
MaximumMillions

Germany
Member #164,595
March 8, 2015
803 Posts
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Apr 8, 2016, 10:49 am

Quote: Originally posted by music* on Apr 8, 2016
I am also referring to the next life in either Heaven or Hell. The criminal's soul will spend eternity in one of the two destinations.

Which is a concept not everyone believes in.

As the source of lottery winnings is usually government-adjacent I doubt you can successfully siphon that money out of the country. Titpon failed. It's not black money from illegal activity, the government already knows the source and will take its' cut.

As for Europe there is no point as winnings aren't taxed. I cans ee using a tax vehicle for inheritance purposes, but again, there are more attractive ways to do so. One could just move to the Bahamas for 183 days and not pay taxes on inheritance. No need for complicated half-illegal measures.
Raven62

25

New Jersey
United States
Member #17,842
June 28, 2005
180,983 Posts
Offline

Apr 8, 2016, 11:24 am

Quote: Originally posted by Romancandle on Apr 7, 2016
Yeah right... Wall Street bailed out... Sun couldn't have shown brighter on those crooks and nothing happened .

A mind once stretched by a new idea never returns to its original dimensions!

Catch-22: A dilemma or difficult circumstance from which there is no escape because of mutually conflicting or dependent conditions.

Corruptissima re publica plurimae leges: When the republic is at its most corrupt the laws are most numerous.

The best way to learn is to never stop being an Experiential Student!
Raven62

25

New Jersey
United States
Member #17,842
June 28, 2005
180,983 Posts
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Apr 8, 2016, 11:26 am

Quote: Originally posted by Dreaming Gemini on Apr 7, 2016
I barely trust my money in this country. I would have a very difficult time trusting it offshore.

So True, So True!

A mind once stretched by a new idea never returns to its original dimensions!

Catch-22: A dilemma or difficult circumstance from which there is no escape because of mutually conflicting or dependent conditions.

Corruptissima re publica plurimae leges: When the republic is at its most corrupt the laws are most numerous.

The best way to learn is to never stop being an Experiential Student!
Raven62

25

New Jersey
United States
Member #17,842
June 28, 2005
180,983 Posts
Offline

Apr 8, 2016, 11:28 am

Quote: Originally posted by music* on Apr 8, 2016
I am also referring to the next life in either Heaven or Hell. The criminal's soul will spend eternity in one of the two destinations.

Nice Concept: But: They Have No Soul!

A mind once stretched by a new idea never returns to its original dimensions!

Catch-22: A dilemma or difficult circumstance from which there is no escape because of mutually conflicting or dependent conditions.

Corruptissima re publica plurimae leges: When the republic is at its most corrupt the laws are most numerous.

The best way to learn is to never stop being an Experiential Student!
1977

st. pete
United States
Member #6,680
September 3, 2004
1,399 Posts
Offline

Apr 8, 2016, 12:28 pm

In Florida you have to pay federal taxes on winnings ,but there is no State tax
Teddi

United States
Member #142,493
May 13, 2013
1,394 Posts
Offline

Apr 9, 2016, 12:28 am

Quote: Originally posted by myturn on Apr 7, 2016
You may have read about the Panama Papers: It would appear that Leona Helmsley was right, when she said, "We don't pay taxes. Only the little people pay taxes."

What are the Panama Papers?

The Panama Papers are an unprecedented leak of 11.5m files from the database of the world’s fourth biggest offshore law firm, Mossack Fonseca. The records were obtained from an anonymous source by the German newspaper Süddeutsche Zeitung, which shared them with the International Consortium of Investigative Journalists (ICIJ). The ICIJ then shared them with a large network of international partners, including the Guardian and the BBC.

What do they reveal?

The documents show the myriad ways in which the rich can exploit secretive offshore tax regimes. Twelve national leaders are among 143 politicians, their families and close associates from around the world known to have been using offshore tax

There's no point in having a tax haven just for a jackpot win. No matter what, the IRS is taking their 25% off the top, and unless you make hefty donations to charities in the first year to have a tax write-off, the IRS is getting the remaining 14.6% as well. Tax shelters will be of no use on that front.

However, a tax haven comes in handy if income generated from the jackpot was sufficient enough to make it worthwhile, since setting up and maintaining a tax shelter account is far from being free.

I plan on having offshore accounts set up, not for tax evasion but because I think diversification of funds is a always a good idea. If those accounts are set up in a way that decreases my tax burden...win-win.
Drenick1

USA
United States
Member #152,792
February 25, 2014
1,111 Posts
Offline

Apr 9, 2016, 11:36 am

The article mentions twelve world leaders having these accounts including Putin and David Cameron. I wonder if Obama has one as well because he immediately held a press conference shortly after this news was revealed shifting blame on corporations. I also heard that Putin may have as much as 22 billion in these accounts alone which is a fraction of the rumored $200+ billion he has stolen from his country.

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