• Main
  • News
  • Roblox, CEO exploited a law to pay less tax like small business

Roblox, CEO exploited a law to pay less tax like small business

30.12.2021 231

0
User Score

Roblox CEO David Baszucki has come under the spotlight for exploiting a law designed for small businesses to pay less tax. A rule for small companies, however, applied to a company that is now worth $60 billion.

A few days ago the news that Roblox has beaten Activision Blizzard, becoming the most valuable company in video games, and it is therefore doubly absurd that the CEO of reality so important feels the need to use quibbles, however legal, to alleviate the amounts to be allocated to the tax authorities.

Roblox, CEO exploited a law to pay less tax like small business

The law in question is called Qualified Small Business Stock and went into effect in 1993. At the time, the legislature's goal was to allow more people to invest in startups by skimming off certain amounts concerning taxation.

Unfortunately, over the years, the rule has been used for much less noble purposes, also because it has been badly written and it is even possible to clone it up to twelve times, thus passing the exemption on to relatives and friends.

Attempts have been made to try to change Qualified Small Business Stock, which has cost the U.S. IRS something like $60 billion over the past decade, and recently the Biden administration suggested cutting the exemption by more than half.


Popular on BSgolds


Far Cry 6 review

Far Cry 6 review

Far Cry 6 game review on BSgolds. A detailed review of the game Far Cry 6 with a breakdown of the plot,…