Tax Evasion vs. Tax Avoidance: What's the Difference?

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  • Опубліковано 10 лис 2024
  • nomadcapitalis...
    Difference between tax evasion and tax avoidance is another common misconception and confusion people have, especially when they're just starting to work with us.
    Simply put - tax evasion is an illegal activity and it can easily get you in a lot of trouble. However, in many situations tax evasion is tolerated from a moral point of view, e.g. receiving cash tips or giving private lessons to someone.
    On the other hand, tax avoidance is totally legal and involves tax reduction strategies, mostly for high net worth individuals, who wish to keep more of their own money, improve their lifestyle and enjoy numerous benefits.
    -------
    ABOUT NOMAD CAPITALIST
    Andrew Henderson is the world's most sought-after consultant on legal offshore tax reduction, investment immigration, and global citizenship. He works exclusively with six- and seven-figure entrepreneurs and investors who want to "go where they're treated best".
    Work with Andrew: bit.ly/Nomad-C...
    Andrew has spent the last 11 years studying and personally implementing the Nomad Capitalist lifestyle, and has started offshore companies, opened offshore bank accounts, obtained multiple second passports, and purchased real estate in a total of 20 countries.
    He has also spent years creating a behavior-based system that helps people get the results they want faster and with less resistance. Andrew believes that everyone can use offshore strategies to keep more of their own money, live a life of freedom, and grow their wealth faster.
    About Andrew: nomadcapitalis...
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    DISCLAIMER: The information in this video should not be considered tax, financial, investment, or any kind of professional advice. Only a professional diagnosis of your specific situation can determine which strategies are appropriate for your needs. Nomad Capitalist can and does not provide advice unless/until engaged by you.

КОМЕНТАРІ • 96

  • @nomadcapitalist
    @nomadcapitalist  5 років тому +14

    What questions do you have about becoming a Nomad Capitalist?
    Comment below with your suggestions or ideas for new topics you want us to discuss.
    Also, if you enjoyed this video, give it a thumbs up and click on the subscribe button.

    • @williamn6133
      @williamn6133 5 років тому

      I would like to know the tax situation in the Philippines (as a British person).

    • @elagos2111
      @elagos2111 4 роки тому +1

      The question is: who will start a business, how start a pay no tax ou zero tax? If you are in the UK how to go offshore. If you make evasion to offshore country, are you continue to link with the original country? The original will go follow the money and will ask for tax because you own business offshore? What is engineering?

    • @darrenmclaughlin3028
      @darrenmclaughlin3028 3 роки тому

      The flyer Felixstowe are the one of the biggest tax evaders in Felixstowe Suffolk ip11 every year they seem to think there got the right not to pay nickerlous estates Felixstowe Hamilton rd big time tax evaders always defrauding the government

  • @nomadkickbox4049
    @nomadkickbox4049 5 років тому +136

    Tax evasion is crossing a toll bridge without paying the officer in toll booth and Tax avoidance is crossing a free bridge to the same city.

    • @Neeko_Z
      @Neeko_Z 4 роки тому +3

      Nice.. but is it really evasion if they have no idea?

    • @pajay315
      @pajay315 2 роки тому

      Same thing with iPhones

    • @zigoter2185
      @zigoter2185 2 роки тому

      Tax evasion is hiding the money front a bandit.
      Tax avoidance is begging the bandit not to take as much.

  • @DesGardius-me7gf
    @DesGardius-me7gf 4 роки тому +88

    "I'm crazy enough to take on Batman, but the IRS!? Nooooooooo thank you!"
    -The Joker

    • @Soul310
      @Soul310 4 роки тому +2

      Haha I just came from that Video....hahahah

  • @dwt51
    @dwt51 5 років тому +69

    I always assumed the difference was 3-5 years...

  • @rebeccak9626
    @rebeccak9626 4 роки тому +35

    Private Individual: ain’t it great - my son’s got a part time gig. $6 an hour for cleaning dishes. It ain’t much, but it helps us pay the bil-
    Government Millionaire: *I AM ENTITLED TO THAT PROFIT*

    • @tazmania7785
      @tazmania7785 3 роки тому +2

      I didn't realize this but my dad when he was alive was committing Tax evasion xD. He did his Taxes on his actual job. But his side work he didn't heh.

    • @watersnortmoment3734
      @watersnortmoment3734 Місяць тому

      $6 an hour should actually fall below the lowest tax bracket. So technically he shouldn’t have to pay federal income tax. Idk how that works if he’s classified as a dependent though.

  • @bretdaughtry8673
    @bretdaughtry8673 3 роки тому +8

    Taxation is thief

  • @ColinTalksCrypto
    @ColinTalksCrypto 5 років тому +18

    Great points!! Deciding where to live is the free market of countries at work. Thank god there are choices!

  • @consciouscrypto3090
    @consciouscrypto3090 5 років тому +7

    Great video. This is such an important point. I've made so many changes in my life to basically do what the government is trying to get me to do, that therefore give me tax savings. People always seem to think it's wrong, when it is literally giving the government what they're asking for! But I look forward to being able to get out of this crazy US system entirely. The thing to be concerned about is what's going to happen with the tax rates in wherever you move to, since for the US it apparently requires giving up citizenship here to avoid taxation here. Don't want to hop from the frying pan into the fire with a few year delay in between.

  • @MusMoroglu
    @MusMoroglu 7 місяців тому

    Thanks Andrew for your video. Your channel has been a great educational piece, although I am surprised to see no counter arguments in the comments.
    I think the idea of comparing avoiding/evading ‘tax’ between the upper and lower class to be a poor argument, (and I personally don’t believe the action of Tax Avoidance for millionaires to be moral, but that’s an opinion).
    To crystallise my main argument - fair enough, you want to keep more of your money that you have earned. But the issue is the Wealth Inequality is the impact it causes on the generations. I am ‘lucky’ to have seen upwards social mobility, and although I am likely never to be able to afford a house, at least I can eat and can pay bills (for now!).
    Wealth should not be a lottery determined by your (grand)parents income. I think Tax on Wealth is a leveller that I appreciate is not an opinion shared by many on this platform.
    I appreciate I may have a level of bias, but I will continue to learn by watching your channel, and counter-arguments (I am a scientist after all, so I’m at least trying to gather all the information I can!).
    I hope if there are any comments to my post, they can spare a kindness to explain rather than to offend. Happy to be directed to other sources.

  • @jessicah3782
    @jessicah3782 5 років тому +5

    Income, Property, Sales Tax... All for an ineffective gov system that pats themselves on the back for burdening more and more citizens🙄

    • @rynoh1294
      @rynoh1294 5 років тому +6

      Not just ineffective, but downright corrupt. Taxes siphoned from the people (tax slaves) to the oligarchs via the banks.

  • @devonfonal5310
    @devonfonal5310 3 роки тому +1

    Thanks man i really needed this!

  • @Bennevisie
    @Bennevisie 3 роки тому +3

    tl;dr;
    Tax avoidance: Legal and morally defensible
    Tax evasion: Illegal and morally defensible
    Taxation is theft.

  • @danielluster732
    @danielluster732 5 років тому +7

    I love to legally pay no tax at all. :-)

  • @candyluna2929
    @candyluna2929 5 років тому +6

    I don't mind being ethical but the gvt isnt so I don't care about being ethical with them

  • @abeeiland5814
    @abeeiland5814 5 років тому +5

    Thank you for bringing clarity to the subtle differences of tax evasion and tax avoidance.

  • @thedeekabides
    @thedeekabides 5 років тому +5

    It isn't wrong to not pay taxes, it's just illegal for poor people.

    • @tayclark42
      @tayclark42 5 років тому +2

      Lol rich people go to jail all the time for tax evasion

    • @thedeekabides
      @thedeekabides 5 років тому +5

      @@tayclark42 They go to club Fed and spend a few months playing tennis. Slap on the wrist compared to the wet bite they take out of the average Joe's ass.

    • @elukainz6670
      @elukainz6670 3 роки тому

      summing it up perfectly - thank you!

  • @RobEJC
    @RobEJC 5 років тому +13

    Love my accountant - tax issues are not morality; they're about "what does the law allow."

    • @dlukton
      @dlukton 5 років тому +1

      Yeah.... ALTHOUGH, there's the whole question of how members of Congress may have "monetized" their position in writing tax legislation... and to the extent that THAT may have been legal.

    • @Hedgehog3342
      @Hedgehog3342 2 роки тому

      Yeah that's a lie, at least the tax issues isn't moral part is a lie Taxation is theft so yes it's a moral issue indeed.

    • @RobEJC
      @RobEJC 2 роки тому

      @@Hedgehog3342 Punctuation is morality issue as well.

  • @Labdominals
    @Labdominals 3 роки тому

    Gods work, brother. Lower your taxes and donate to your community is my motto.

  • @ThomasStYeng
    @ThomasStYeng 5 років тому +2

    Feisty episode. Well done. Sometimes the truth stings. Go where you’re treated BEST

  • @ricmuch
    @ricmuch 5 років тому +7

    Rip tax evasion the cave spider, may you rest in peace.

  • @notsure3238
    @notsure3238 3 роки тому +2

    The problem what people have with TAX AVOIDING is that people "pretend" moving to a lower tax country,
    And then still live in the country where they don't pay tax....

  • @austinmcmahon254
    @austinmcmahon254 4 роки тому +2

    Jordan Belfort[voice over]: There were other things about him too, like his phosphorescent white teeth. The fact that he wore horn rims with clear lenses just to look more Waspy. Then there were these rumors.

    • @Labdominals
      @Labdominals 3 роки тому

      Great reference, I’m dying my man

  • @befirdumeseret2995
    @befirdumeseret2995 3 роки тому

    thanks

  • @MegaMissfitz
    @MegaMissfitz Рік тому

    Its ok! Ive decided against buying one! My other 5 vacuums will have to last abit longer Gonna treat myself another van instead! Strictly cash only though for obvs reasons! Crumb free dreams 😤😘😤

  • @jamesmorgan9801
    @jamesmorgan9801 5 років тому +2

    Andrew is a pioneer of popularising the consumerist idea of becoming subscribers of nations. The average person today can become paid subscribers to Netflix, Tinder, UA-cam but only the rich and wealthy can subscribe to becoming tax residents of low tax nations. Because of this the state has no need to do more than the bare minimum in terms of quality of services towards their taxed citizens. In an increasingly globalised world people are becoming more aware of the rat races we are running and are gradually moving towards making our jobs location independent and becoming subscribers to nations that offer competitive advantages. I admire Andrew for living the libertarian dream. I'm still preparing myself financially to take the plunge.

  • @skeeo7393
    @skeeo7393 2 роки тому

    I kinda expected him to start going "and today we're looking at tax avoidance and all of its quirks and features" or something like that

  • @devonfornal3050
    @devonfornal3050 3 роки тому +1

    Quick Question Though How do you get out of a building surrounded by the feds

  • @jaberawad3241
    @jaberawad3241 5 років тому +3

    you were splendid

  • @ivetaivyivie8324
    @ivetaivyivie8324 5 років тому +2

    I will definitely read your book!!

  • @xbonsx
    @xbonsx 3 роки тому

    "whatever the IRS says, a good lawyer and ten years in prison", from the movie "the firm"

  • @ReSpark141
    @ReSpark141 2 роки тому

    "Tax Evasion is a crime"
    'IT'S AN OBLIGATION'

  • @Local_commentor
    @Local_commentor Рік тому

    I don't care who the IRS sends I am not paying taxes

  • @tentailmadara2500
    @tentailmadara2500 2 роки тому

    Lol I got asked this question on a test and I managed to forge the correct answer within what any of them means

  • @zigoter2185
    @zigoter2185 2 роки тому

    Tax evasion is okay. Paying taxes is less okay in fact.

  • @MoonHowler340
    @MoonHowler340 2 роки тому

    Tax Evasion in Hungary is a pretty common scheme 😅

  • @GershyJazzy
    @GershyJazzy 5 років тому +5

    That music makes me feel so capitalist! Oh yeah!

    • @margyiphillips4931
      @margyiphillips4931 5 років тому

      It makes me feel already a nomad capitalist while planning to become one.

  • @nathancrosswhite8292
    @nathancrosswhite8292 4 роки тому

    To own a shell company do you already need to own a company and have it trade marked? Or can i just open the shell with just applying for an off shore bank?

  • @FilmedByRayBrown
    @FilmedByRayBrown 8 місяців тому

    Dubai all the way mate

  • @bryanchaps3647
    @bryanchaps3647 4 роки тому

    That’s what did in Studio 54

  • @rickypretty9949
    @rickypretty9949 4 роки тому +1

    Fuck paying taxes

  • @nonametrackz7887
    @nonametrackz7887 4 роки тому

    So I started making money around 2018 and didn't know anything about taxes or handling money ..I recieved a 1099 k for the last 2 years and hvnt done anything about it ,, I think I'm fucked unless I still got time.

  • @jrockshaitianbighomiethatg285
    @jrockshaitianbighomiethatg285 5 років тому

    What if you run a business and just don’t file or pay taxes? Is that tax evasion?

  • @MariaHernandez-lp4dm
    @MariaHernandez-lp4dm 3 роки тому

    My love 🤩

  • @daartistboi
    @daartistboi 3 роки тому

    Why does this guy sounds like John Lasseter?

  • @mickysupremeleadgenmarketer
    @mickysupremeleadgenmarketer 5 років тому +2

    I'ld like to buy your book. Can I send you Bitcoins?

    • @nomadcapitalist
      @nomadcapitalist  5 років тому

      Hi Micky, We currently sell the book exclusively on Amazon, so we're at the limit of payments they accept.

  • @karenbrodmann2737
    @karenbrodmann2737 4 роки тому +2

    That's not really a good explanation of tax avoidance.

  • @pruebya6344
    @pruebya6344 3 роки тому

    Hes giving me the tad bit twisted vibessss

  • @Cookiemanscity
    @Cookiemanscity 2 роки тому

    nobody ever reports tips lol

  • @dennishipsley8703
    @dennishipsley8703 10 місяців тому

    THERE IS NO SUCH THING AS TAX EVASION!!....... because TAXABLE YEARS ENDED AUGUST 16 1954.... by LAW PASSED INTO LAW BY THE 83rd and recorded AS LAW published as VOLUME 68A in the UNITED STATES STATUTES AT LARGE!! Google 26 CFR 1.0-1 paragraph (d) clearly says TAXABLE YEARS began December 31 1953 and ended......and ENDED.... AND ENDED AUGUST 16 1954; the IRC of 1954. THERE IS NO INCOME TAX AND HASN'T BEEN FOR.......70 YEARS!!!!! Any Subtitle F compliant/ enforcement provisions took place the day AFTER the date of enactment.... August 17 1954 but on that day there was/is NO TAX TO ENFORCE AS the tax died expired BY LAW THE DAY BEFORE.... August 16 1954!!!!

  • @DigOnAmerica
    @DigOnAmerica 3 роки тому

    It’s not perfectly moral to avoid taxes. It’s clear that the more you make, the less percent you pay. It’s broken and stupid to justify theft. You do not give more to charity than you’d pay in tax, and we don’t always know where charity dollars go. Too often, they go to lobbying efforts.

    • @Hedgehog3342
      @Hedgehog3342 2 роки тому

      Technically taxation is theft. So not paying is actually quite sane and moral. Especially since the government is a immoral institution. When you pay taxes you're essentially becoming dependent on the government. That's not a good thing, you eventually become slave to government. The rich themselves im pretty sure already commit theft but through very strategic methods usually loopholes that average Joe's couldn't do.

  • @marcolugo1707
    @marcolugo1707 4 роки тому +1

    😆 😆 😆

  • @niermalahrieday4871
    @niermalahrieday4871 5 років тому

    Please sub indooo

  • @santodiablo7686
    @santodiablo7686 2 роки тому

    What a parasitic take

  • @devonfornal3050
    @devonfornal3050 3 роки тому +1

    Thanks man i really needed this!