Tag: Taxes

Riyadh : A recent discussion among financial experts has highlighted how rich legally pay Zero Taxes, their tax burden by structuring their businesses and investments in ways that align with government policies and economic priorities. Contrary to the common belief that the rich avoid taxes through illegal methods, analysts say most high-net-worth individuals rely on legal frameworks, incentives and long-term financial planning. During the conversation, financial commentator Divakar explained that taxes often function as a policy tool used by governments to shape public and business behaviour. He noted that taxes are not only meant for raising revenue but also to influence economic activity, saying governments use taxation to reward certain actions and discourage others. The “Three P’s” of Tax Planning According to the discussion, successful entrepreneurs often follow what was described as the “Three P’s of Tax Planning.” These include: Priority: Focusing on sectors that governments want to encourage, such as industries that generate jobs, exports or technological development. Paranoia: Addressing areas linked to a government’s long-term strategic goals or concerns, including energy security, semiconductor production or renewable technology. Prohibition: Some heavily regulated sectors, such as alcohol and tobacco, operate under strict tax regimes but often receive regulatory protection due to their large tax contributions. Understanding the “True Tax Cost” Experts also stressed that entrepreneurs should consider what they called the “True Tax Cost.” The concept was explained as: “True Tax Cost Tax Paid + Pain Endured − Odds of Success − Incentives.” This means choosing where to run a business should not depend only on low tax rates. For example, relocating to a jurisdiction with lower taxes might appear beneficial, but higher operating costs or weaker market opportunities could reduce the chances of business success. Building a Strong Tax Structure The discussion also emphasized the importance of creating what was described as a “bulletproof” financial structure. Such a structure should be simple to understand, aligned with government economic goals, and efficient when it comes to business exit, succession or sale. Also Read | MrBeast plans to launch financial platform and phone company Experts concluded that entrepreneurs should focus more on creating value rather than simply avoiding taxes. Aligning business activities with policy incentives and economic priorities, companies can manage their tax obligations legally while building sustainable growth.

Tag: Taxes

How rich legally pay Zero Taxes: A Psychological & Financial Shift

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How rich legally pay Zero Taxes: A Psychological & Financial Shift

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