Paying rent is an expense.

If it is a personal expense, he can’t write it off on his taxes (to my knowledge) so whether or not he pays rent, it doesn’t change his tax liability so it is not even a tax issue and thus he can’t be a “tax criminal”. However, it does affect his “take home” pay.

If paying rent is a business expense and can be claimed as a deduction for tax purposes, then writing off the expense reduces his tax liability and thus reduces the amount of taxes he would have to pay.

If he does not pay rent (thus incuring a deductable expense because he sleeps in his office), then his tax liability will stay higher because he won’t have as many deductions.

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