Very Interesting. But...when signing up at EMI's or Banks, who declares to be the UBO?
One of your fall dummies in the chart I'd suppose. Probably 20%. He is owning 20% after all.
This reminds me of another semi-related discussion. I have some jewish relatives from the other side, good people. And one of his relatives who was good in business told me, never own more than 20% of a business. I thought he was crazy then, because he was like 70, but now he might be on to something. Lets just call him adam.
When you own and control 100% of a business, whenever there is a problem you have a problem and have to go run to fix it. This guy owned a radio station and ice cream shops. He said when the DJs would smoke weed, he'd have to run down their to stop them. When lightning hit the station because of the broadcast, he'd have to go run to replace parts. When guest trashed the rooms, he had to go clean it up or get cleanup crews and replacement equipment. When pest were in the fields and the grass had to be mowed, he had to fix all that. If someone quit he had to go chase their replacement. If an advertiser pulled out or there was a complaint, he had to go fix it before his license got pulled or the advertisers pulled out, etc. You get the idea. One night kids snuck in and vandalized the place writing seig heil and heil hitler and swastikas all over the radio station. He had to run to clean it up quickly and hire professional cleaners. If the payroll wasn't submitted on time it was he who faced all the penalties, if the taxes were messed up it was he who'd go to jail. If the ice cream machine shut down or a manager quit etc. it was all on him to go wake up that morning and call vendors.
He had a partner who had basically paid him $200k for 20% of the business a few years ago. Lets call him David. Adam figured it was a good deal because it was basically a no interest loan for $100k that would only be paid back if Adam made money. He didn't even have to personally guarantee any assets. He was making about $300k after the salary he took from the 2 businesses combined pre-tax. Adam still had final say, control, power over everything and beyond his agreed salary, whenever there was a distribution/dividend he had to give David 20%.
The way he saw it was the other guy got paid 20% a year to sleep in bed. And he had to have all the stress and got 80%. He then copied that guys business model.
www.taxjustice.net
