The creator of Roblox reportedly evaded taxes 12 times thanks to a loophole in the law
Roblox is the most popular game that it really isn't. More than 200 million people a month gather on this platform to create their games and play other people's creations, and Roblox Corporation has more value in the market than the century-old Nintendo. In this context, the pretty big news is that the founder of Roblox Corporation, David Baszucki, has avoided paying taxes as many as 12 times.
According to The New York Times, Baszucki used a loophole in the law that evaded the payment of taxes by the founders of many other companies such as Uber, Airbnb, Zoom, Pinterest, and others. In a completely legal proceeding, Baszucki took advantage of a tax deduction intended for small businesses.
The thing works so early small business investors can be exempt from taxing profits up to $ 10 million. And Baszucki took advantage of this 12 times by making Roblox investors his family and close relatives, distributing shares in the company to them while it was still not worth $ 60 billion. The New York Times says it was part of an early business plan - while no one could guarantee that Roblox would be so successful.
Baszucki allegedly distributed Roblox shares to his wife, children (x4), mother-in-law, and several other relatives, thus legally avoiding taxing Roblox's earnings of up to $ 10 million 12 times. Although there is "everything according to the law", this is not the only business practice of Roblox that can be considered on the edge of the law. Last year, Roblox Corporation faced accusations of child labor under non-transparent allegations that it could make "serious money" by creating content in Roblox.