Chapters (84)
“Huge amounts of wealth, all buried beneath layers and layers of corporate shelters. Except these. Why?”
“There may be more. She doesn’t know. She thinks they might be some of the first properties Saad ever bought—before he had his shelters in place. She also said something else—that most systems this complicated are created for avoiding taxes. Something you mentioned, too. Loophole after loophole allowing rich individuals to pay paltry amounts in taxes. But with Saad, it’s different. He doesn’t avoid paying taxes. She said he actually pays more than necessary.”
This time, Omar stopped reading and turned with a look of genuine surprise. “Excuse me?”
“That’s what she said. Evidently, Saad has been paying more taxes than required. His corporate structures are complicated, but not his taxes. He pays a lot more than necessary, even without loopholes. It’s been that way for a long time.”
“That… doesn’t make any sense.”
“That’s what I was thinking.” There was a long silence before she spoke again. “Or does it?”
“What?”
Mona continued thinking it through. “Saad,” she said slowly, “is a very private person, right?”
“Right.”
“And a very thorough person.”
“Clearly.”
“Someone who doesn’t want anyone looking too closely at his activities,” she continued. “Or his actions. Or his money.”
“Correct.”
“And the best way to prevent that…”
“Is to bury everything so deeply that no one can figure it out.”
Mona looked at him. “But then again, maybe he didn’t stop there.”
“What do you mean?”
“Think about it. If he’s really that thorough, would he also have taken additional steps… than just burying everything in a bunch of legal documentation?”
“I’m afraid I’m not following.”
“What’s another way,” she said, “of keeping people away? From looking too closely?”
Omar blinked. “Bribe them.”
“Exactly. Which we already know he’s doing with people at UNICEF. But the government itself may be too big, especially multiple governments in multiple countries. So, what’s the next best thing?”
“Than bribing?
“Yes! What is it that gets governments to investigate ‘high worth’ individuals more than anything else?”
“Taxes.”
“Taxes,” she nodded. “Or more importantly, lack of paying taxes.”
“But your sister just said–”
“She said he pays more than his share.”
Omar finally saw where she was going. “Egyptian Taxing Authority focuses on people who pay very little taxes, not people who pay too much.”
“Why would they,” Mona said. “What government is going to complain that you gave them too much money?”
Omar turned back around in his chair, impressed. “He can’t bribe everyone, so instead he pays so much in taxes that he removes himself as a target.”
“Exactly.”
He thought it through before nodding his head. “That’s brilliant.”
“It’s not a mistake. Or some magnanimous gesture. It’s a strategy.”
“To keep from being investigated.”
“Financially or politically, I’m guessing. All the while, he’s being labeled the great philanthropist.”