This is the most talmudic thing I've seen in the last 15 minutes.
(media.scored.co)
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Fact is, when you get a loan from the bank, 80-90% of that money isn't real. Due to the way fractional reserve banking works, the bank doesn't need 100k to loan you a 100k. They can loan you 100k and only physically have 10-20k in the bank.
So they "loan" Tyrone a 525 dollar "asset" (which is an insane profit margin already considering how little they actually cost), then when Tyrone turns it back in, they can write off the depreciation of the "asset".
And if Tyrone doesn't turn it back in, they can write it off as a loss and get a tax burden reduction.
And then, they sell off the delinquent debt to collections for pennies on the dollar, and then the collections agency buys the debt and tries to collect the full amount.
You ever notice why nobody gets their kneecaps broken for not paying their debts anymore?
If the shoes are worth $100, then the asset is worth $100 and they sell it at $525. If they get destroyed completely, it's a $100 loss not a $525 loss - so there's no benefit here. Used shoes might be worth 25-50%, so that's a $25-50 depreciation not $262,50. They margin is so high because it's a numbers game - they know large part of their target market will stop paying and good luck repo'ing shoes and even more-so selling used ones after. For every 5 deals they need each of them to pay off an average of $100 and after that is their actual profit.
The proper way to scam large amounts on taxes is with a charitable foundation and art.