You've missed the point entirely. The idea here is that when remitting only 1.5 Million a year and use untaxed savings accumulated in previous years to sustain spending in LOS at 3 Million I will save half a million in income tax a year. And we can repeat this cycle by taking sabbaticals every 5 of 5 years.
But as some have mentioned, by that time RD might have worked out how to tax foreign income, instead of remittances. In which case I'll cough up the money every year. But my wife and kids will probably get the money untaxed.
Now, the 6% or 8% yield on savings is just urban legend where my money is. Dunno about US, Oz or UK. Always worry when I hear that sort of figures, as they are totally disconnected from economic reality,. Don't want to be a doomsayer though.
Just one more thing, I am just a normal worker, but not totally naive either; for the last 33 years I managed to earn about a quarter of a million a year while active, less since I've retired, all totally tax exempt, without breaking any law.