Taxes have always been a constant pain that cannot be avoided. Well, of course you can stop paying them, but that’s illegal. However, there are a lot of loopholes that are legitimate. Here’s what some people have tried so far to ‘cheat the Tax Man’. We’re not actually instructing you how to do it, we’re just conveying some examples.

Getting Cash

Some people get paid either daily or over a period of time in cash. The money is not reported to HMRC by either the one that pays or the one that gets paid. This way, they don’t pay taxes for that cash and the government can’t do much about it.

Opting for Tax Havens

Another way for lowering the tax rates or even not paying them at all is to keep the money in a country that has low tax rates or no taxes at all. Neither companies nor individuals like paying taxes.

Declare Less

Reduce that tax bill by declaring that you earn less than you actually do.

Online Selling

A good way to not pay for the VAT, which is 20%, is to not report your online sales.

Living Alone

Even though you live with your spouse, friend or your family, you can state that you live alone. This way, many people can save about 25%, as many councils offer a 25% discount for those that live alone.

If you thought that avoiding or reducing the payment of taxes, you’re wrong. There are many other ways to dodge paying taxes. The government can stop it only through demonetization, which is far too complicated to ever happen.

Money Laundering Got More Technical Than Ever

Basically, a person will pay taxes on the money they’re laundering. That is actually the process through which illegal money get legal. Any sum that has been illegally gained will be transformed into a legitimate and spendable sum. Nobody would spend a huge amount of cash on cars or other large purchases, as it might raise suspicions. Most of the people will make the money seem that it comes from a legitimate place, they will pay the taxes and then spend them without any worry. A reliable source would be a business that is said to be earning more than it actually makes, so that the illegal money can get laundered.

Let’s get to the tech side of money laundering and see what it focuses on. We’re talking about cryptocurrency, known as virtual coins. The most popular one is Bitcoin (BITCOMP). People invest in cryptocurrency, because each transaction gets recorded on a blockchain (a ledger) that doesn’t contain names or personal details. So, money can be hidden and spent through these virtual coins.

Idea taken from this post, thanks to www.buddyloans.com