Because they don’t actually have the money. The value of their holdings are used as collateral on loans. They use the loans to pay for their expenses and are just constantly in debt. This avoids all tax consequences for them. And it is fucking stupid.
Because they don’t actually have the money. The value of their holdings are used as collateral on loans. They use the loans to pay for their expenses and are just constantly in debt. This avoids all tax consequences for them. And it is fucking stupid.
i learned a new word kiting the other year, it sounds like thats why rich people do.
When oligarchs do kiting, it is called “circular financing”.