The simplest way to subsidize others is by using the annual exclusion, which allows you to give $13,000 in cash or other assets each year to each of as many individuals as you want. Spouses can combine their annual exclusions to give $26,000 to any person tax-free. For example, a married couple with a child who is married and has two children could make a joint cash gift of $26,000 to the adult child, the child’s spouse and each grandchild – four people – providing the family with $104,000 a year.
Category Archives: taxes
Google uses a few awesomely named (and perfectly legal) tricks to keep its global tax bills low.
The techniques saved the company billions of dollars in taxes in the past few years,Bloomberg News reports. And they’re a reminder of the Rube Goldberg-esque strategies companies use in all kinds of settings to deal with rules and regulations.
‘The Double Irish’
Google licensed the European rights to its search and advertising business to a unit called “Google Ireland Holdings,” according to Bloomberg.
Despite what the name might suggest, Google Ireland Holdings has its “effective centre of management” in Bermuda — land of sun, sand, and superlow corporate taxes.
Google Ireland Holdings in turn owns Google Ireland Limited, which employs almost 2,000 people in Dublin.
That unit sells billions of dollars of ads every year — but winds up passing most of that money through to Google Ireland Holdings, the Bermuda unit.
This arrangement is actually pretty common in the corporate world, Bloomberg says. It’s called the “Double Irish” because of the two-company structure.
The Dutch Sandwich
Irish law exempts some royalty payments to other E.U. countries. So those European profits make a brief stopover in the Netherlands on their way from Ireland to Bermuda.
The money passes through a Dutch unit called “Google Netherlands Holdings” which lists no employees and pays out 99.8 percent of what it collects to the Bermuda unit, according to Bloomberg.
This move is known as the Dutch Sandwich.
A Google spokeswoman told Bloomberg that “Google’s practices are very similar to those at countless other global companies operating across a wide range of industries.”
“To People who retire, please dont just go to sleep and stay at home. Do something because if you are interested in doing things, you will live longer,” Dr Mahathir said to laughter and applause from the crowd.
Responding to a question from a man named Pong, who asked about his recipe for success in turning around Malaysias economy during the 1997-1998 financial crisis, Dr Mahathir said: “If you keep your money under your pillow, the economy will never grow.
“But if you spend the money and somebody makes a profit, the government is always very happy because 28% of the profit goes back to the government.”
President Barack Obama is making less money than he used to, though it’s still a lot: He and wife Michelle reported income of $1.73 million last year, mostly from the books he’s written, according to his just-filed tax return. That was down from the $5.5 million of a year earlier.
An accountant who tipped off the IRS that his employer was skimping on taxes has received $4.5 million in the first IRS whistleblower award.
The accountant’s tip netted the IRS $20 million in taxes and interest from the errant financial-services firm.
The award represents a 22 percent cut of the taxes recovered. The program, designed to encourage tips in large-scale cases, mandates awards of 15 to 30 percent of the amount recouped.
The IRS mailed the accountant’s lawyer a $3.24 million check that arrived in suburban Philadelphia by first-class mail Thursday. The sum represents the award minus a 28 percent tax hit.
Milton Friedman, master economist.
Bank of England governor Mervyn King has said that a squeeze in living standards is the inevitable price to pay for the financial crisis and the recovery of the UK and global economy.
Speaking in Newcastle last night, King said that a mixture of rising inflation and stagnant wages meant that UK wage earners were set for hard times and that this has resulted in the longest decline in take-home pay in the UK since the 1920s.