Well...technically it isn't illegal. Like you said, it is exploitation of a loophole...but...the tax dudes created that loophole on purpose. Don't you think that the tax dudes know this shit is going on...of course they do..but they don't care. On the other hand though...if you are making a boat load of money, directly or indirectly, would you really want to get taxed like 100 million dollars extra if you could avoid it by exploitation.
Look at it this way...if I make $150 000, I have to pay around $50 000 tax on that shit. Good luck said the duck...I'm am not giving away that much money to money grabbing douches. I will exploit every loophole I can to minimise that tax. I worked hard for that money...I am not throwing away 4 months worth of cash just like that.
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