If the money goes to his corporation, then to him, it’s his income and taxed accordingly. If it stays with the company, even if the company buys a watch with it, it is still corporate income, so the company still pays tax on it. If it’s a gift from the company, he has to declare it as income, so he still can’t get out of paying taxes on what the watch cost. If it’s not a gift but he gets the use of it, then there’s still issues with it.
In short, in one simple example he tries to prove how smart he is, but he essentially shows how little he actually knows about what he’s doing. This is the man that is writing the books everyone reads about how to get rich. This is one example, one I can easily remember. If you’re still not sure, then Google his name with the word scam or fraud and read a lot of the web sites that debunk him.
If you’re really interested in how things work monetarily, read “The Millionaire Next Door.” There are many millionaires around that people don’t even know are millionaires. I was at a small birthday party recently in surburbia and knew everyone there and had discussed money with most of them because I was on good terms with them and because most of us either had our own businesses or had other reasons to share what we had been learning or knew about money management. I realized that almost everyone in that forum was a millionaire, some were multimillionaires, and only one or two people in the room were likely not. Yet you’d never know it. Most people were driving “regular” cars. Only one or two were driving a Mercedes. The rest were driving cars like a Jetta, a Passat, Accords, and so on — cars that were definitely in the under $30,000 (and most under $25,000) market. They weren’t wearing big baubles or talking about taking off on a private jet to Cancun, or even hopping a flight for the weekend to Barbados.
Yet every one of them, in their forties and up, was either quite comfortably retired or could retire from anything they were doing at any point and still live comfortably for the rest of their lives.…