₦airaland Forum

Like the illustration, there are good reasons one would use a tax haven to keep your savings and wealth. Tax avoidance is different from tax evasion and for me, I can do just about anything legal to pay less to a capitalist state that only knows how to take but frugal in giving

As long as the monies were legally made, this whole panama thing is a big fat dust. Financial experts all over the world model daily on efficient and most effective ways of wealth enhancement, protection and quantum growth. Indeed a great deal of investment banking is devoted to doing just this, tailoring multiple and complex products to assist the rich to pay less tax and grow their wealth

So what's the fuss

If the funds invested there are stolen, are the authorities where they are taken from blind? Why haven't they noticed that money was missing before this leak?? It is dangerous to demagogue the rich amongst us simply because they are well off, unless we have proof of impropriety

CltrAltDelicious:
Op replace piggy bank with kolo

Not everyone is Yoruba to understand Kolo. So the use of Piggy bank is more universal.

I love this explanation. An average man will easily understand

When u get a quarter,you put it in a piggy bank

Same model the cayman islands offshore accounts works..that's just life.

feldido:
The simplest explanation no doubt.






But not all Nigerian children understands what piggy bank is.

Lol, kolo would have been better

Abeg, wetin be piggy bank?

Now, to all parents! Spare the rod and spoil the child also the child's child?

Or

Initiate the use of titanium metal to correct the child and let history be a lesson to the child's child?

Instead of piggy bank u for call am "saving box"

The last time i heard of panama was in d movie titled: prison break

Simplified.. but you failed to address the tax evasion

feldido:
The simplest explanation no doubt.





But not all Nigerian children understands what piggy bank is.

Even many adults here are confused

feldido:
The simplest explanation no doubt.






But not all Nigerian children understands what piggy bank is.

It's not the simplest explanation; it's the simplest lie.

If they were looking for secrecy, Swiss bank accounts would have been the only go to banks for stashing secret funds.

The keyword is called Tax Haven. Certain countries such as Bermuda, Luxembourg, the Caymans and of course Panama, offer very low to zero percent tax on Income or capital gains. So these High networth individuals or companies go to these countries that offer tax shelters and create corporations that only exist on paper. Oyibo people call them shell corporations (as in empty shell, nothing inside).

They then route all their financial transactions through theses shell corporations even though all the transactions originated and terminated in UK or US. Because those shell corporations were registered in those tax haven countries, these people now avoid paying tax that should have gone to those UK or US treasuries.

Besides using these tax havens to dodge tax, people and companies use them to hide the true value of their assets. I register a shell corporation in Luxembourg, use my brother or wife or close pally as director or signatory and then use the shell Corp to buy and sell anything I like or hide any money I like and it will not be traceable to me. Bankers in those tax havens are very secretive and it's extremely difficult to extract any information on accounts that they manage or the people behind such accounts.

Oyibo people in divorce cases also use these tactics to conceal the true value of their networth so that when it comes to dividing the assets, they don't get to lose everything.

@OP, your explanation is very misleading and may even be viewed as sympathetic to financial crimes committed, to an extent.

You can read further here:

http://www.theguardian.com/business/2015/jun/19/tax-havens-money-cayman-islands-jersey-offshore-accounts


http://www.abc.net.au/triplej/programs/hack/setting-up-your-own-tax-haven-shell-company-takes-10-minutes/7297094

And Delishpot will soon hide her piggy bank somewhere soon. *for a good reason o

In that case, lets use "Calabash" or "kpangolo"

feldido:
The simplest explanation no doubt.






But not all Nigerian children understands what piggy bank is.

zimoni:
I believe there are other Nigerians on the list not only BukOle OleSaraki.

They are all going to Prison.

Sai Babaaaaaaaaaaaaaaaa

David mark was there

chrisandy100:
https://www.reddit.com/r/explainlikeimfive/comments/4d8rta/eli5_the_panama_papers/d1owxn5


Panama Papers Vs Saraki : Read https://www.nairaland.com/3028446/panamapapers-hidden-family-assets-saraki

Hmm another fan of Reddit ELI5 I see.

Heads must roll...i mean literally...

Panamaphobia

I really appreciate your satirical touch.

Tinyemeka:
It's not the simplest explanation; it's the simplest lie.

If they were looking for secrecy, Swiss bank accounts would have been the only go to banks for stashing secret funds.

The keyword is called Tax Haven. Certain countries such as Bermuda, Luxembourg, the Caymans and of course Panama, offer very low to zero percent tax on Income or capital gains. So these High networth individuals or companies go to these countries that offer tax shelters and create corporations that only exist on paper. Oyibo people call them shell corporations (as in empty shell, nothing inside).

They then route all their financial transactions through theses shell corporations even though all the transactions originated and terminated in UK or US. Because those shell corporations were registered in those tax haven countries, these people now avoid paying tax that should have gone to those UK or US treasuries.

Besides using these tax havens to dodge tax, people and companies use them to hide the true value of their assets. I register a shell corporation in Luxembourg, use my brother or wife or close pally as director or signatory and then use the shell Corp to buy and sell anything I like or hide any money I like and it will not be traceable to me. Bankers in those tax havens are very secretive and it's extremely difficult to extract any information on accounts that they manage or the people behind such accounts.

Oyibo people in divorce cases also use these tactics to conceal the true value of their networth so that when it comes to dividing the assets, they don't get to lose everything.

@OP, your explanation is very misleading and may even be viewed as sympathetic to financial crimes committed, to an extent.

You can read further here:

http://www.theguardian.com/business/2015/jun/19/tax-havens-money-cayman-islands-jersey-offshore-accounts


http://www.abc.net.au/triplej/programs/hack/setting-up-your-own-tax-haven-shell-company-takes-10-minutes/7297094

Spot on & succinctly put, the best explanation so far

feldido:
The simplest explanation no doubt.






But not all Nigerian children understands what piggy bank is.

Just say "kolo",my Yoruba folks will understand.

Op, thanks. Its now the news is making sense to me.

feldido:
The simplest explanation no doubt.






But not all Nigerian children understands what piggy bank is.

Kolo would have been better...

Here is a piggy bank

feldido:
The simplest explanation no doubt.






But not all Nigerian children understands what piggy bank is.

I agree.. Op! Should have used the term "kolo'' instead of piggy bank in his informative piece..

Wonder if he knew if keeping via stealing wasn't kworruption..

feldido:
The simplest explanation no doubt.






But not all Nigerian children understands what piggy bank is.

it is called KOLO (it comes in clay or wooden with a hole in the middle)
now in Nigeria coins is of less importance....what is our children saving in their piggy bank

Well understood

Very nice and precise explanation

My Money goes into the Piggy Bank

BabaAlabi:
I have been observing the Panama papers saga and expected a website like Nairaland to constantly update us. However there has been little mention about it. This just shows how low Nairaland has fallen. The mods have become gossipers interested in facile and lascivious posts. Seun has jettisoned quality for increase in number of users.

Cc Seun. Do you agree? Of course you do It's all about traffic and Alexa rankings.

But BabaAlabi, On NAIRALAND, what is Panama Papers compared to Tonto Dike's boobs, Linda's bags, Snakes and Waje's pictures? Don't worry, Lala will soon be back from IG where he went to scout for celebrity pictures

feldido:
The simplest explanation no doubt.






But not all Nigerian children understands what piggy bank is.

I didn't find much on your profile like your signature said. Just one picture no dedicated thread. WhatsApp me 08080330000

SFSNIPER:
I didn't find much on your profile like your signature said. Just one picture no dedicated thread. WhatsApp me 08080330000

Thanks, for showing interest.
Never thought of Opening a Thread for it.
Will do that ASAP.