[nomadking]

How is this all that different from the likes of Mick Jagger, Bono, and Sting funnelling their money from intellectual property rights into Dutch companies? They are avoiding tax. Which means that the Dutch based company has more cash to invest elsewhere. The money those investments earn then have Dutch tax applied to them. If money from the company is then transferred to the person, then they pay tax on it. IIRC Sting transferred a chunk from his Dutch company in 2010 in to avoid the Labour tax increase from 45% to 50%.

Companies like hedge funds will also use the same principle but with tax havens. The income that is generated internally by the company is tax free, but once any income is sent out to the shareholders it is then taxed at the appropriate rate for that person. Money originally invested in the hedge fund is likely to have been taxed already.