There’s a BIG Difference Between Tax Avoidance and Tax Evasion

Panama Papers vector design | Vector by Vector Open Stock

Millions of shoppers make buying decisions every day. They hunt for good deals, clip coupons and use discount codes. It pays to make the best use of one’s resources, however limited they may be. The ascension of online retailers like Amazon brings an added benefit — a lack of sales tax. All other things being equal, shoppers can, in most cases, avoid sales tax when buying items online.

That is a totally legitimate decision: an item that costs $49.99 in the brick-and-mortar store before sales tax and costs the exact same price online — especially when offered free shipping — with no sales tax. Easy decision. What would those shoppers’ reactions be when people start calling them shady characters?

They were making a decision to avoid the tax, right? Totally legitimate.

take our poll - story continues below

Who should replace Nikki Haley as our ambassador to the U.N.?

  • Who should replace Nikki Haley as our ambassador to the U.N.?  

  • This field is for validation purposes and should be left unchanged.
Completing this poll grants you access to The Constitution updates free of charge. You may opt out at anytime. You also agree to this site's Privacy Policy and Terms of Use.

Trending: Former Australian Politician Gives Life to Christ at 85 After Lifetime of Atheism

That same criticism is now targeting people who wish to simply protect their wealth from rapacious government bureaus which continually, year after year, act irresponsibly and rack up debts in the name of the taxpayer.

In the recent case of the Panama Papers leak, the media has portrayed the private individual as the wrongdoer.

“The media repeatedly paints with a broad brush, referring to all corporations formed internationally as ‘shell companies,’ ” said Adele Weiss, principal at Weiss+Associates, a European-based consultancy firm specializing in the Federal Income Tax. “This is a huge presumption which begs the question: Who is encouraging the media to act in such an irresponsible way?”

Well, the answer may come from Bradley Birkenfeld, an American whistleblower who, while working for Swiss bank, UBS, provided private data to the U.S. government about Americans who held UBS accounts. The IRS paid him $104 million for this data.

Birkenfeld suspects that in the case of the Panama Papers, the leaking of some 11.5 million private documents from the Panamanian law firm, Mossack Fonseca, was orchestrated, planned, or facilitated by the U.S. Central Intelligence Agency (CIA). He told MSNBC:

“The CIA I’m sure is behind this.

“The very fact that we see all these names surface that are the direct quote-unquote enemies of the United States: Russia, China, Pakistan, Argentina and we don’t see one U.S. name. Why is that? … There’s something seriously sinister here behind this.”

Birkenfeld said the reason for this leak was to be used as a weapon in the ongoing currency war, in particular with Russia. Weiss agrees with Birkenfeld’s suspicions, but adds:

“This revelation comes very near the tax deadline for reporting. The media has always been complicit in publishing well-timed articles to make it seem as if the U.S. government is capturing every tax evader. In these stories, the topic is never broached that people are perfectly within their rights — both legally, ethically and strategically — to avoid taxes. There is a HUGE difference between a tax avoider and a tax evader. Likewise, there is a cavernous difference between those lawful non-taxpayers and those who are legal U.S. Taxpayers of the Federal Income Tax.”

One who avoids taxes does so legally and ethically; one who evades taxes is a person who hides money for a tax he is obligated to pay. All politicians who currently work for the federal government are definitely U.S. taxpayers.

Author Nicholas Shaxson, wrote in an op-ed published by The Washington Post, “Tax havens shield the money of rich people. … When tax havens assist kleptocratic elites in hiding their cash with impunity, they don’t guard against corruption and despotism — they help perpetuate them.”

Although he pointed out that the Panama Papers leak provided names recognized by many — and not ordinary citizens — he still made the huge mistake of painting a picture that international corporations are vehicles solely for unsavory activity. “Tax havens provide an escape route from laws that is available only to a rich minority that can afford to use it, thus removing from the equation the constituency with the greatest power to push for reform,” he wrote.

This is patently false. International corporations can be formed for as little as a couple thousand dollars. I have had one for 12 years now (and it’s clear that I am as wealthy as I am powerful and famous (sarcasm intended)).

As none of these other ‘journalists’ note in their written articles, it’s vital for every investor to protect and grow whatever wealth they have attained. Capital controls have come to the United States; those powers will undoubtedly increase while your ability to stay out of their sordid web will decrease. Do you trust your debt-addicted government to respect your private property?

“We have to make a distinction here,” warned famed investor Doug Casey of what the U.S. has become over time.

“One is ‘America,’ which is a marvelous idea, unique idea, fantastic idea. I’m extremely pro-American. But America has ceased to exist. It has been replaced by the United States (the corporate entity) which is just another of 225 nation-states that covers the Earth like a skin disease at this point. People shouldn’t conflate these two things: the ideal with the political reality. So what you’ve got to do is get a lot of your assets out of the control of the government that thinks it owns you … like a milk cow.”

It’s crystal clear that the benefits of forming an international corporation are numerous and positively affect investors at any stage, from billionaires to entry-level entrepreneurs. Weiss adds,

“What everyone in the media seems to miss is that there exists millions of Americans who legitimately do not owe any Federal Income Tax and know there is something very bad coming down the financial pike.

“We have helped our clients not only realize that the Federal Income Tax is voluntary, but helped educate them and aided in communicating their correct status with the National Government.”

Weiss has known for over 20 years that the Federal Income Tax is voluntary, thanks in part to this admission by then IRS boss Dwight Avis in 1953: “Your income tax is 100 percent voluntary tax, and your liquor tax is 100 percent enforced tax.”

Through years of research, Weiss found out how the federal government got people to volunteer through a sub-silentio (under silence) election, and years later, found out, that, in order to make its tax scheme operational, without violating the U.S. Constitution, Congress had to create an ‘Exit Door’ to allow Americans (referred to in IRC statutes and regulations as Nonresident Alien Individuals) an option to legally leave the U.S. Tax Club. In between these two pieces of legislation exists a great deal of subterfuge.

The Revocation of Election document serves as the American’s official notice that he has elected to operate outside the U.S. Tax System. The process can also be learned of via this YouTube video.

“This is a very powerful document that frees the (qualified) American National of any future obligation to file and pay a Federal Income Tax,” Weiss declared. “This amounts to the same choice made by shoppers when they choose Amazon to avoid paying tax. Both are completely legitimate decisions, despite how the media wishes to portray only one side to this topic.”

Those seeking more information on the Revocation of Election process, and the formation of international corporations, can email


Patrick Vermeister

Patrick Vermeister is a communications professional, privacy advocate, and partner at Weiss+Associates, located in Paris, France. His published work covers topics ranging from economics, banking, taxation, individual sovereignty, and sports. Weiss+Associates, founded by Adele Weiss, over 25 years ago, are Financial Freedom Consultants who specialize in the U.S. Federal Income Tax, constitutional tax law, and Americans' voluntary election into the U.S. Tax Club.

Please leave your comments below

We have no tolerance for comments containing violence, racism, vulgarity, profanity, all caps, or discourteous behavior. Thank you for partnering with us to maintain a courteous and useful public environment where we can engage in reasonable discourse.