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Toine Manders: Zo Betaal Je Zo Min Mogelijk Belasting

Zo Word Je Steenrijk Podcast・106 minutes read

The text discusses the burdensome taxation system in the Netherlands, highlighting the high percentage of income lost to taxes and the legal complexities faced by entrepreneurs, while advocating for tax avoidance strategies, including relocation to low-tax jurisdictions. It also reflects on the personal experiences of the speaker, who faced legal challenges related to tax practices, emphasizing the emotional and professional impacts of their legal battles and the importance of individual freedom in financial decisions.

Insights

  • The text outlines how the state uses aggressive tactics, such as threatening letters, to collect taxes, effectively turning tax collection into a coercive process that can have serious consequences for those who do not comply.
  • Twan Manders, a tax lawyer featured on Dennis Mulder's podcast, advocates for individual freedom and minimal government interference, emphasizing the importance of aligning with like-minded individuals to foster personal liberty.
  • Manders argues that high taxes disproportionately burden entrepreneurs, who often end up acting as involuntary tax collectors, passing on costs to consumers, and he highlights the significant tax burden faced by the average resident in the Netherlands.
  • The text discusses various legal strategies for tax avoidance, including exploiting loopholes and relocating to countries with lower tax rates, which Manders views as a legitimate means of preserving personal wealth and freedom.
  • The speaker reflects on their legal struggles and the impact of taxation and government regulations on their life, illustrating how these issues can lead to significant personal and professional challenges, including wrongful accusations and the emotional toll of legal battles.

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Recent questions

  • What is tax avoidance?

    Tax avoidance refers to the legal strategies individuals and businesses use to minimize their tax liabilities. It involves exploiting loopholes and taking advantage of tax laws to reduce the amount owed to the government without breaking any laws. Unlike tax evasion, which is illegal and involves deceitful practices like underreporting income or inflating deductions, tax avoidance is considered a legitimate way to manage one's financial obligations. Many people view tax avoidance as a moral obligation, especially when they believe that the government misuses tax revenues. By utilizing various legal methods, such as establishing offshore accounts or taking advantage of tax incentives, individuals can significantly lower their tax burdens while remaining compliant with the law.

  • How do taxes affect entrepreneurs?

    Taxes can significantly impact entrepreneurs by imposing a heavy financial burden that can stifle growth and innovation. In many countries, including the Netherlands, entrepreneurs face high tax rates that can take up to 50% of their income. This progressive tax system disproportionately affects self-employed individuals and small business owners, who often find themselves acting as involuntary tax collectors, passing on costs to consumers. Additionally, taxes on savings, inheritance, and donations can discourage productivity and thriftiness, making it harder for entrepreneurs to reinvest in their businesses. The high tax environment can lead to capital flight, where entrepreneurs relocate to countries with more favorable tax conditions, ultimately affecting the local economy and job creation.

  • What are the benefits of relocating for tax purposes?

    Relocating to a country with lower taxes can provide significant financial benefits for individuals and entrepreneurs. By moving to jurisdictions with minimal or no income taxes, such as the United Arab Emirates or Cyprus, individuals can retain a larger portion of their earnings, allowing for greater investment in personal and business growth. This strategy minimizes interactions with tax authorities and reduces the overall tax burden, which can lead to substantial savings, especially for high earners. Additionally, many countries offer attractive tax incentives for foreign individuals, such as low corporate tax rates and exemptions on foreign income. This not only enhances financial freedom but also allows for a more favorable business environment, encouraging innovation and entrepreneurship.

  • What is the impact of high taxes on consumer prices?

    High taxes can lead to increased consumer prices as businesses often pass on their tax burdens to customers. For instance, in the Netherlands, a self-employed consultant may pay significant amounts in VAT and income tax, which can reduce their net income and compel them to raise prices for their services. Similarly, fuel prices are heavily taxed, with about 75% of the cost attributed to taxes rather than the actual product. This creates a situation where consumers end up paying more for goods and services, which can lead to decreased purchasing power and overall economic strain. The cycle of high taxation and increased prices can also discourage spending, ultimately affecting economic growth and consumer behavior.

  • What are offshore constructions?

    Offshore constructions refer to the establishment of companies in low or zero-tax jurisdictions, often located on islands, to minimize tax liabilities. These entities are designed to take advantage of favorable tax laws that allow businesses to operate with reduced tax obligations. By setting up offshore companies, individuals and businesses can legally avoid high taxes in their home countries, benefiting from lower corporate tax rates and fewer regulatory burdens. However, while offshore constructions can provide significant financial advantages, they can also attract scrutiny and criticism, particularly if perceived as tax evasion. It is essential for individuals engaging in such practices to ensure compliance with international tax laws and regulations to avoid legal repercussions.

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Summary

00:00

Tax Strategies for Financial Freedom and Independence

  • The state employs extortion tactics, sending threatening letters demanding payment, with consequences for non-compliance, effectively functioning as tax collection offices.
  • A portion of the money collected is used for maize production, while the remainder is allocated to the state, highlighting the dual purpose of tax funds.
  • The podcast "This is how you become filthy rich" hosted by Dennis Mulder focuses on financial freedom and tax avoidance, featuring tax lawyer Twan Manders as a guest expert.
  • Twan Manders' interest in taxation stems from his political philosophy advocating for individual freedom and minimal government interference, which he developed from a young age.
  • He became involved in liberalism after learning about it in school, leading him to study law and engage in political discussions, eventually joining the libertarian movement.
  • Manders emphasizes the importance of surrounding oneself with like-minded individuals who respect personal freedom, rather than trying to change those who do not.
  • He suggests that true freedom can be pursued by relocating to countries with fewer restrictions or by adopting a lifestyle as a "permanent tourist" to avoid obligations like taxes and military service.
  • Another method for achieving freedom is finding legal loopholes in regulations, allowing individuals to pursue their goals without violating the law.
  • Manders began his career advising individuals on avoiding military conscription, viewing it as a form of injustice, and later shifted focus to helping entrepreneurs navigate government regulations.
  • He argues that entrepreneurs are unfairly burdened by taxes, which are often passed on to consumers, making them involuntary tax collectors in the economy.

14:16

Tax Burden and Awareness in the Netherlands

  • The average productive resident in the Netherlands loses approximately 50% of their income to taxes, highlighting a significant tax burden on individuals.
  • Higher productivity leads to increased taxation due to the progressive income tax system, affecting entrepreneurs and self-employed individuals disproportionately.
  • Taxes on savings, inheritance, and donations penalize those who save or leave assets for heirs, creating a disincentive for productivity and thriftiness.
  • For example, a self-employed consultant earning €100 pays €12 in VAT and approximately €9.50 in income tax, leaving around €50 after taxes.
  • Fuel prices reflect high taxation, with about 75% of the cost attributed to taxes rather than the actual product, making gas stations effective tax collection points.
  • The introduction of income tax and withholding taxes in the late 19th century obscured the true tax burden from taxpayers, leading to a lack of awareness.
  • Municipal taxes are particularly annoying for taxpayers as they are directly billed, contrasting with other taxes collected through employers, making them more visible.
  • A proposed change to the tax system would involve direct billing to taxpayers, potentially sparking a tax revolt due to increased awareness of the tax burden.
  • The education system, established in the late 19th century, reinforces government narratives, shaping beliefs about taxes and state roles in society from a young age.
  • The gradual acceptance of controversial ideas in education reflects a shift in societal values, influenced by generations of state-controlled schooling and propaganda.

27:10

Tax Loopholes and Their Impact on Entrepreneurs

  • Entrepreneurs often exploit tax loopholes, which can oppress minorities, leading to a focus on creating legal structures that benefit them without facing punitive measures.
  • In 1996, starting a limited liability company in the Netherlands required ministerial permission, taking 6 months to a year, and a minimum deposit of 40,000 guilders.
  • Business partnerships in the Netherlands were often more tax-efficient than limited liability companies, limiting opportunities for many entrepreneurs compared to countries like England and Ireland.
  • The European Union's freedom of establishment allows entrepreneurs to set up companies in member states with fewer restrictions, enabling them to operate across the EU, including the Netherlands.
  • The establishment of around 8,000 legal entities was facilitated, primarily foreign entities, which led to the Dutch government's introduction of laws to discourage foreign company usage.
  • A successful test case at the European Court of Justice challenged Dutch laws restricting foreign companies, resulting in significant legal reforms in the Netherlands and other EU member states.
  • Cyprus became an attractive jurisdiction for tax avoidance, offering a low tax rate of 4% for foreigners and no tax on dividends, prompting the opening of an office there.
  • Tax avoidance is legally saving taxes through loopholes, while tax evasion involves illegal actions like filing incorrect tax returns, with severe penalties for non-compliance.
  • The speaker views taxation as legalized robbery, arguing that taxpayers have not entered a social contract with the government, equating tax collection to extortion.
  • Offshore constructions refer to companies established in low or zero-tax jurisdictions, often islands, allowing for reduced tax liabilities under specific conditions related to foreign business operations.

41:13

Global Tax Trends and Entrepreneurial Strategies

  • Countries increasingly adopt a single corporate income tax rate, regardless of business location, with few exceptions for low or zero tax rates applicable to all entities.
  • Some countries offer temporary tax advantages for foreign individuals, typically lasting 4 to 17 years, with rates often set at zero or very low levels.
  • Malta attracts foreign entrepreneurs by maintaining a 35% corporate tax rate but offers a 30% rebate for foreign shareholders, resulting in an effective rate of 5%.
  • Countries with excessively low tax rates risk being blacklisted, leading to non-deductible money flows and withholding taxes on interests and royalties.
  • The United Arab Emirates, once a zero-tax haven, introduced a 9% VAT and a 5% VAT due to international pressure, maintaining no income or wealth tax.
  • The EU's blacklist policy requires parent companies in high-tax countries to include profits from subsidiaries in low-tax jurisdictions, subjecting them to higher tax rates.
  • A global minimum tax rate of 15% has been agreed upon by 133 countries, pressuring nations like the UAE to implement taxes to avoid penalties.
  • Competition among companies is crucial for lowering prices and improving quality, contrasting with government organizations that prioritize budget size over customer satisfaction.
  • Entrepreneurs in the Netherlands face high taxes, including a 44% marginal tax on company value increases, leading to potential capital flight to lower-tax countries.
  • Emigrating can help entrepreneurs avoid significant tax burdens on company value increases, with potential savings of millions if they relocate before selling or transferring assets.

55:41

Taxing Emigrants and Trust in Controversy

  • Minister Kaag has tasked civil servants with generating ideas to increase tax revenue from emigrants, including a proposal to tax them for six years post-emigration.
  • The proposal to tax emigrants for six years is controversial and lacks official confirmation, with rumors suggesting a potential leak of information.
  • The discussion references the Panama Papers, which exposed tax evasion practices and involved a law firm, Mossack Fonseca, known for trust services and company management.
  • Mossack Fonseca's employee leaked client data, leading to the Panama Papers scandal, which implicated many high-profile individuals, including the speaker.
  • The firm had around 150,000 shell companies and operated in 25 countries, but its founders were acquitted of charges related to money laundering and tax evasion.
  • The speaker faced negative publicity and accusations of fraud in 2010, impacting their trust business and client relationships significantly.
  • Trust services allow clients to avoid taxes by placing assets in a trust, transferring management to a trust office for confidentiality and security.
  • The speaker emphasizes the importance of client trust in the trust sector, where negative media can severely damage reputations and business viability.
  • Tax avoidance is legal and viewed as a moral obligation by the speaker, who argues against contributing more to a state that misuses funds.
  • The speaker criticizes government actions during the COVID-19 pandemic, citing negative impacts on health, family connections, and economic stability, particularly in Sweden's contrasting approach.

01:10:36

Health Impacts of Restrictions and Legal Struggles

  • Restrictions on gym access and outdoor activities negatively impact health, leading to increased tension, domestic violence, and rising drug and alcohol use in various countries.
  • Sweden experienced low excess mortality during COVID-19, attributed to less restrictive measures, contrasting with the unhealthy consequences of strict lockdowns imposed elsewhere.
  • Personal choice should dictate health measures; businesses can choose to welcome all customers or restrict entry based on vaccination or mask status.
  • Customers must accept responsibility for their choices regarding health risks when dining in establishments with different safety protocols.
  • The speaker relocated to Cyprus in October 2013, moving all possessions, including a 40-foot container with household items and cars.
  • In 2004, a law regulating trust offices was introduced, but the speaker's office in Cyprus was not subject to this law due to its structure.
  • The Dutch Bank later tightened regulations, requiring foreign trust offices serving Dutch clients to obtain permits, violating EU freedom of establishment principles.
  • The speaker consulted five lawyers about options, concluding that applying for a permit was futile due to the Dutch Bank's stance against small independent trust offices.
  • The speaker faced legal challenges in Cyprus, including a minor violation of the WTT, resulting in 100 hours of community service, but later faced serious accusations of aiding fraud.
  • After 107 days in detention, the speaker was released under conditions that restricted travel, effectively making the Netherlands a prison, while longing for their life in Cyprus.

01:24:34

Legal Struggles and Consequences in Europe

  • The speaker describes a prison in Cyprus with low crime rates, allowing visits from family, contrasting it with stricter conditions in Dutch prisons.
  • In Cyprus, smoking was permitted, which the speaker found disadvantageous, prompting a request for expedited extradition to the Netherlands.
  • The speaker faced a European arrest warrant, emphasizing that legal processes in the EU can be unjust, regardless of the circumstances of the arrest.
  • After being detained in January 2014, the speaker was released in May 2014, but faced three years of restrictions, including a travel ban and inability to work in finance.
  • The speaker's lawyer explained that the suspension of their sentence had significant consequences, impacting their income and professional relationships.
  • Despite being acquitted of serious charges, the speaker received a community service sentence of 100 hours for a minor infraction, highlighting the disparity in legal outcomes.
  • The speaker expressed frustration over the lack of compensation for wrongful accusations, noting the difficulty in proving bad faith in legal proceedings.
  • Following the lifting of their professional ban in 2017, the speaker began advising clients on tax optimization and business structures, leveraging their previous experience.
  • The speaker is currently appealing the community service order and seeking a complete acquittal, aiming to challenge the legality of the law under European jurisdiction.
  • The speaker reflects on their journey, emphasizing the emotional toll and the long-lasting impact of their legal battles on their life and career.

01:38:19

Tax Strategies for Global Emigration Benefits

  • Emigration is the primary recommendation for reducing tax burdens, as it minimizes discussions with tax inspectors and offers significant advantages in various countries.
  • The United Arab Emirates has minimal taxes, including a 9% corporate tax, with salary deductions making it possible to pay no taxes on profits in free zones.
  • Countries like Georgia impose a 1% tax on turnover below €100,000, while Romania has a 10% income tax for earnings below €2-3 million.
  • In Malta, foreign income is tax-free unless brought into the country, with a 5% effective tax rate on profits and no inheritance or wealth taxes.
  • Cyprus offers a 12.5% corporate tax rate, with no wealth, gift, or inheritance taxes, and allows for tax-free income from foreign sources under certain conditions.
  • Andorra has a 10% tax on worldwide income and is conveniently located between France and Spain, appealing for its good infrastructure and proximity to skiing.
  • Switzerland, while expensive, has lower taxes than most Western European countries, attracting wealthy individuals despite high living costs.
  • Italy and Greece offer a flat 10% tax on foreign income, making them attractive for those with significant foreign earnings, alongside lower living costs.
  • Other countries with favorable tax conditions include Hong Kong, Singapore, Thailand, and various Caribbean nations, each with unique benefits for expatriates.
  • For personalized advice, individuals can contact info@nozikconsulting.nl, referencing Robert Nozik, an American libertarian philosopher.

01:51:48

Nozick's Insights on Freedom and Society

  • Professor Robert Nozick, author of "Anarchy, State, and Utopia," inspires with his work, particularly "The Language of the Slave," which is recommended for its profound insights; engage with the content by liking, subscribing, and commenting for future episodes.
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