Thanks for these insights I am sure it will make things clearer to a lot of readers
Quote:
Originally Posted by MoneyMafia
Let's put some light in this ...
What interests us here is tax heaven countries where the taxes are very low or a fixed low rate..
Example:
I get a cargo with clothes and I pay $50K to the merchant. Then I resell the clothes to 3 shopping malls getting $75K .. After Expenses I get a $25K pure profit. Here in my country I have to pay a 16% to the gov.. Thats
16% * $25K = 4K to the gov .. Profit for me only $21K.
Using an offshore company
Get a cargo with clothes and I pay $50K to the merchant. I resell the clothes to 3shoppingmalls getting $75 but they will pay the money to my bank account in Panama (Tax heaven)...Here the taxes are only $200 flat fee annually . After expenses I get a $24.800 pure profit nothing to the gov 
In first case I cash in $21K and second $24.800 |
To avoid this from lowering their tax revenues governments in various countries have put laws in place that make that less legal....
Quote:
There are more ways like fake expenses etcetc.
Now I hope you get it why tax heavens are useful 
|
If you use fake expenses you are definitely committing fraud
Points about anonymity etc are well taken, but it should be stressed that, although certainly NOT impossible it is FAR more complicated to keep within the law. What you should do to implement something like this not only HEAVILY depends on what you do it for, like you already mentioned, but also where you are resident as well as your nationality.
Quote:
Internet banking
You should do some research when you choose a bank account in this countries as you need INTERNET BANKING (to manage the account from the comfort of your home) and DEBIT CARDS ( to get out the funds) or WIRE TRANSFER Fees. I was pretty happy with ex-URSS countries (Latvia) and Seychells banks
Hope this post helped..if you have questions I'll be glad to help you
|
Those ex-USSR countries are now members of the EU. So if you are an EU resident this is probably not for you. Debit cards probably leave more of a trail than you think they would and the paranoid would not use them in the ATM around the corner from where they live
