Since the inception of taxes, there’s been a quest to find loopholes to reduce tax burdens — and some of these methods are so unusual they belong in the annals of tax history. While most individuals rely on accountants to legally reduce their tax obligations, others take more creative, if eyebrow-raising, routes. From snail farms in high-rises to toy pandas “occupying” vacant office space, tax avoidance schemes have occasionally crossed into bizarre territory. Here’s a look at some of the strangest schemes in history.
1. The Snail Farm “Agriculture” Exemption
One of the more recent, peculiar attempts at tax avoidance took place in a Liverpool office building. Claiming an agricultural exemption from business rates, operators housed crates of snails in an office — even as few as two snails per crate — and argued it qualified as “agricultural use” of the property. Although similar claims had previously been ruled as “shams,” that hasn’t stopped creative taxpayers from testing this agricultural loophole.
2. “Potato Price Support” Strategy
In the 1970s, some American farmers found a way to reduce taxes by participating in government programs that paid them to leave certain crops unplanted. By agreeing not to grow potatoes, farmers could still collect compensation from the government, which in some cases qualified for tax benefits. This odd mix of agricultural policy and tax law allowed farmers to gain financially by simply not growing crops, an approach as clever as it was surprising.
3. The “Toy Panda” Office Occupation
In the UK, vacant properties are taxed unless they’re in use. To dodge these business rates, some landlords decided to “lease” empty buildings to businesses that filled them with toy pandas, claiming that the stuffed animals kept the property occupied. While some courts ruled these schemes as blatant tax avoidance, they exemplify the lengths to which landlords would go to avoid vacant property taxes.
4. Offshore Livestock Registries
Registering livestock offshore was a popular tactic in the late 20th century. Investors registered cattle in tax havens like the Isle of Man to avoid capital gains and inheritance taxes. Technically owned by offshore entities rather than individuals, these cows allowed some to sidestep significant tax obligations. Although authorities eventually put a stop to the scheme, it illustrates how unconventional assets can sometimes be used to evade tax.
5. Film Partnership Tax Schemes
In the early 2000s, high-profile figures like David and Victoria Beckham and Robbie Williams invested in a “Film Partnership Scheme.” By investing in movies, they claimed tax deductions based on these investments. However, many of these films were never released, and their production often prioritized tax relief over artistic or commercial goals. The scheme was later targeted by the UK government, resulting in back taxes for many participants.
6. Centurion Parking Meter Scheme
In South Africa, a company attempted to dodge nearly $500,000 in property taxes by placing parking meters on vacant land and declaring it as “business use.” They claimed that the land was being used commercially, thus lowering their tax liability. However, the community voiced strong opposition, and the scheme became a public scandal due to the perceived unfair burden it placed on residents.
7. Business of “Storing Air”
Perhaps the most imaginative avoidance scheme involved companies leasing large, empty properties and claiming they were used for “air storage” to evade business rates. Since there was no strict definition for “storage,” some landlords argued that simply holding air in a building qualified as commercial use. Authorities eventually saw through this unusual interpretation, closing the loophole.
From snail-filled office spaces to offshore cattle registries, these schemes reveal how far some will go to minimize tax obligations. While tax authorities work diligently to close these loopholes, new creative approaches seem to surface just as fast.Though these stories may elicit a chuckle, they underscore a serious truth: tax systems worldwide are constantly evolving to close loopholes and ensure fairness. But as quickly as one door closes, another peculiar scheme seems to open, as inventive taxpayers find new ways to push the limits. While these bizarre methods may be a thing of the past, they remind us of the ongoing, age-old tug-of-war between taxpayers and tax authorities — a game of strategy, creativity, and sometimes, just plain audacity.
