Dutch sandwich

Okay kiddo, have you ever made a sandwich before? Well, a Dutch sandwich is kind of like a special sandwich that people use to hide their money.

So, imagine you have some money and you don't want people to know you have it. You want to keep it safe and keep it away from the people who might want to take it. That's where the Dutch sandwich comes in.

The first thing you need to do is put your money into a company or a bank in a country where you're not from. This is called an offshore account. It's like having a secret hiding spot where nobody knows where your money is.

But wait, there's more to it. The next step is to make a sandwich. This is where the name comes from. You're not actually making a real sandwich, but it's like building one.

The first piece of bread is your company or bank account. This is where your money is hiding. The second piece of bread is a company or bank account in another different country. This is where your money is going to end up.

So, you take your money from the first account and you send it to the second account. But in between, you put some other things in the middle. These are called royalties and interest payments.

Royalties are like payments you get when someone uses something you own, like a song or a patent. Interest payments are like extra money you get for keeping your money in a bank.

By adding these in the middle, you can make it look like you're just paying for things you own, and not actually hiding your money. It's like a magic trick!

And that's how a Dutch sandwich works. It's a special way to keep your money safe and hidden, almost like building a sandwich! But remember, only grown-ups can do this kind of thing and it's important to always pay your taxes and follow the rules.