How One of the World’s Wealthiest Individuals Avoided Taxes for Years
Many people are always complaining that the wealthy don’t pay their fair share in taxes. While that is an argument that will never end, it seems that one of the world’s richest men might be guilty. That’s because he was able to avoid paying taxes for more than 40 years. How is that possible? The wealthy taxpayer in question is the founder of IKEA, Ingvar Kamprad, who is reportedly one of the top ten richest people in the world.
Although IKEA is clearly influenced by all things Swedish, the man who built the IKEA empire left his native country more than 40 years ago in the name of tax savings. IKEA is the number one furniture store in the world and in the fiscal year 2014-2015 the company reported 31.9 billion euros. However, taxes have always been a huge part of IKEA’s success. That’s exactly why Mr. Kamprad left the country he loves for Switzerland. He wanted a tax break.
While he did pay taxes in Switzerland during those 40 years, he legally avoided what would have been a much larger bill if he had stayed in Sweden, for both his company and his personal income. Now, after all these years he has returned to his native Sweden and in 2014 he paid what amounted to about $2 million in taxes to Sweden, while his net worth is reportedly worth an estimated $43.2 billion.
Tax Telecommuting
Tax Telecommuting If you’re thinking about setting up employees as telecommuters, you’re not alone. Businesses ranging from large multi-nationals to small shops know that telecommuting not only can improve worker morale and performance, it can also save you and your employees money. What’s not to like about zero commuting costs and no office rent? You…
Tax S-corporation
Saving Taxes with an S Corporation An S corporation election allows the shareholders to preserve the benefit of limited liability for the corporate form while at the same time being treated as partners for federal income tax purposes. Ever wondered why so many small businesses operate as an S corporation? Simple. An S corporation saves…
Sec1045 Partnerships
Sec1045 Partnerships This document contains final regulations relating to the application of section 1045 of the Internal Revenue Code (Code) to partnerships and their partners. These regulations provide rules regarding the deferral of gain on a partnership’s sale of qualified small business stock (QSB stock) and a partner’s sale of QSB stock distributed by a…
Sec179 Businessequipment
Updated: 11/12/10 Most new business equipment can be either depreciated over its useful life or expensed immediately under Internal Revenue Code Section 179. The maximum deduction is based on the following schedule for the date in which the tax year begins. Each 1040, whether Single or Joint, is limited to one maximum. 179 expenses passed…