How hedge funds evaded taxes - Using the Panama papers to explain years of abusing legal loopholes
First post summarizing what the panama and paradise papers are: https://www.reddit.com/r/Superstonk/comments/mx8chw/has_there_been_any_look_at_the_possible/
Second post poking fun at the financial institutions that spent years dodging taxes to save money, lose a bunch of money from the Archegos fallout: https://www.reddit.com/r/Superstonk/comments/mx9zfr/all_the_financial_institutions_getting_hurt_by
(I am not an expert and this is a very big oversimplification on things)
Starting off, I'm sure you've at least heard of the term "offshore account" or "tax haven" and know that's mainly how tax avoidance is done. Essentially, money is shifted around from one account to the next, within the jurisdiction of some territory with much more lenient tax laws (Cayman Islands for example). Now since that's out of the way...
What did the panama papers reveal that wasn't blatantly obvious? (other than make it official)
With specific examples, the leaked documents helped paint a clearer picture of how far the rich were willing to go.
The leaked documents go all the way back to the 70s... how did no one get suspicious?
The best part of having multiple accounts is how easy it is to switch around.
Remember, the whole point was to conceal the identities of who really owned everything. Even if a bank said publicly that it would not do business with anyone with red flags, it wouldn't be known that they were even raising red flags to begin with. Big Banks also are looking out for their own interests, they want to keep customers who do the most with them. Link for pictures above
That's all interesting but what about hedge funds specifically?
In 2016, hedge fund industry estimated to be worth around $2 trillion.
10,000 doing who knows what with their money...
With money like that, you'd think it'd be fine to just pay taxes and be rich but noooo.....
Using offshore accounts located in tax havens
Within the United States, the law requires much more information to be presented. This would make things transparent, and open a window to how wall street works behind closed doors. So obviously they avoid that, by having accounts within different jurisdictions without those pesky laws. But wait, the hedge fund that owns the account is still located in America! Which is why they make them SECRET.
I'm sill new to writing these long posts so I'm getting tired and will just sum it up.
What does this have to do with GME?
They've stolen from the people
Money that could've been spent on public projects
GME is a chance to finally get all the money they've collected and stolen over the years back into the hands of who it belongs. We're Robinhooding this bitch (the pun was already pointed out when Robinhood halted trading in January. its already been overdone).
Posted Apr 24, 2021, 7:47 AM UTC