There are countries (such as the UK) were one of the main pathways for Tax Evasion for very rich people is to make a Charity or Foundation (in the UK case, you register it on one of the Channel Islands tax havens) to which one gifts the entirety of one’s income (the way it works for tax evasion in the UK is that the entire tax on the money given to said Charity or Foundation is sent to them by the UK State) and then that Charity or Foundation pays for all your living expenses.
Even better, such a scheme also works for evading Inheritance Tax - you just have to change who the controlling board member of said “Charity” or “Foundation” is and now the control of all that money is in the hands of the descendant(s), tax free even if the amount is high enough that inheritance tax would be due (so, for very rich people).
But that’s not even the most special part. The most special part is when some people who uses such tax evasion schemes boast very publicly that “I give all my money to Charity”, since most of the public aren’t aware of this scheme.
Sometimes the charity is also controlled by the same people
There are countries (such as the UK) were one of the main pathways for Tax Evasion for very rich people is to make a Charity or Foundation (in the UK case, you register it on one of the Channel Islands tax havens) to which one gifts the entirety of one’s income (the way it works for tax evasion in the UK is that the entire tax on the money given to said Charity or Foundation is sent to them by the UK State) and then that Charity or Foundation pays for all your living expenses.
Even better, such a scheme also works for evading Inheritance Tax - you just have to change who the controlling board member of said “Charity” or “Foundation” is and now the control of all that money is in the hands of the descendant(s), tax free even if the amount is high enough that inheritance tax would be due (so, for very rich people).
But that’s not even the most special part. The most special part is when some people who uses such tax evasion schemes boast very publicly that “I give all my money to Charity”, since most of the public aren’t aware of this scheme.