How To Legally Avoid Paying Taxes
You make your money by working hard at a job that you had to pay for indirectly by going to school, or getting some other form of training that probably cost you money. And the government wants a percentage of what you make for the larger portion of your life.
Taxes are a pain in the ass. It's clear that governments use taxes to fund public utilities and pay civil servants but taxes remain unattractive for a majority of people. All governments are inherently corrupt, so it's clear as day why the idea of remitting tax does not sit well with alot of people. Not just hippies and the woke movement.
There are legal ways to avoid paying taxes. Assuming you are in a position to open an offshore bank account. That's the prerogative. Let's also pretend that you own a company X.
Company X, based in Kenya, wants to avoid paying tax on their earnings.
They do this by setting up a Company Y (Inc) in the Cayman Islands where there is zero tax.
Company Y cleverly owns the Intellectual Property (IP) that Company X needs to use. Y licenses the IP to X.
X makes Ksh50Bn after expenses but they don't want pay tax on their profit.
Since Y is still owed money for licensing the IP out. X must now pay whatever Y is owed.
Y charges Ksh50Bn for renting out their IP to X.
Company X's profit is now Ksh0, therefore they pay zero tax because you only pay tax on profit.
Company Y's profit is now Ksh50Bn and with a zero tax rate in the Cayman Islands, they pay zero tax.
Remember, X and Y are the same company working together, they are just separate entities.
