How to skip taxes on extra income?

[CashJunkie]

I'm going into the BH bizz and have a few questions about taxes for my earnings..

First of all I already pay over $1700 tax each month on my 9to5 job so I don't feel bad about trying to skip taxes on my (to start with) small extra income. My full time job should also be enough to keep the "tax hunters" away..

My first idea was to only work with CPA networks and such that pay to PayPal and then buy a new computer and other stuff directly from PayPal. That way the cash never touches my actuall bank account.. Would that work?

Anyone got any helpful input? If I start to earn more I recon I have to find some other method.. Or buy alot of computers

Im based in Sweden so any general or Sweden specific help is appreciated!

 

[katona44]

where are you from?

 

[kirkonpolttaja]

Hey there! i'm your neighbour from finland, in my IMHO this works

For those who is coming to flame, if income is small, you dont have to declare it... well you have to but if the income is like ~100€/month, it's not that big of a deal for even the tax hunters.

This month i earned something like 400€ from IM and got all into my paypal, and i just reinvested that money right away for IM tools. I dont know about other countries but here you can use money that is supposed to go to taxes to help your business by buying related tools, for IM you can pay your internet bill, electricity and hardware with money that would go to taxes otherwise.

 

[kirkonpolttaja]

where are you from?

lol... check out the OP's last line

 

[CashJunkie]

where are you from?

Sweden

Hey there! i'm your neighbour from finland, in my IMHO this works

For those who is coming to flame, if income is small, you dont have to declare it... well you have to but if the income is like ~100?/month, it's not that big of a deal for even the tax hunters.

This month i earned something like 400? from IM and got all into my paypal, and i just reinvested that money right away for IM tools. I dont know about other countries but here you can use money that is supposed to go to taxes to help your business by buying related tools, for IM you can pay your internet bill, electricity and hardware with money that would go to taxes otherwise.

Thanks for your reply!
That was pretty much what I was thinking.. But what woulld you do if you started earning alot more? To be honest, that's the aim for all of us. Would you go legit and just pay your taxes?

 

[e13a34d32]

Yea you would go legit and pay your taxes. If you get caught and the, "tax hunters" question you on why you didn't report previous income then you can just play it off as ignorance of the tax laws.

Also good luck in Sweden. World's highest taxed country in the world. You are better off just living off welfare.

If you really want to avoid taxes then you have to have a business that ISN'T OWNED BY YOU. The income you earn is deposited into that foreign bank account (not in your name) and the income is reported on the other person's return and they pay the taxes which will probably be lower than sweden's tax rates. Once the income has been reported and taxed then the trick is actually getting that money into your hands so you can spend it.

This method works great if you are reinvesting most of your profits back into the business. If the business is located in a tax haven then you will pay 0% tax.

None the less, this is a very tricky method as the other person has to be very honest.

 

[Jii^2]

Hey there! i'm your neighbour from finland, in my IMHO this works

For those who is coming to flame, if income is small, you dont have to declare it... well you have to but if the income is like ~100€/month, it's not that big of a deal for even the tax hunters.

This month i earned something like 400€ from IM and got all into my paypal, and i just reinvested that money right away for IM tools. I dont know about other countries but here you can use money that is supposed to go to taxes to help your business by buying related tools, for IM you can pay your internet bill, electricity and hardware with money that would go to taxes otherwise.

At least in Finland it's easy enough to start up a small company. This way you can do just like kirkonpolttaja said and write off things as expenses in order to reduce the total profit shown.

I'm a Finn myself too - and as I work from home, I can mark a small percentage of my rent as an expense. Anything that is bought for the business can be written off as an expense. I know a HUGE BUNCH of people that even mark bar nights / restaurant visits as expenses... I don't have the balls (nor the will) to do that. But it's possible.

And I'm making some 2-6k€ a month from IM, depending on the month and various other things And I'd rather tell the tax officials all than live in constant fear of breaking the law (tax laws both here and in Sweden are STRICT, I advice you to play by the rules to avoid all conflict)

 

[kirkonpolttaja]

 

[Jii^2]

 

[CashJunkie]

Thanks for the responses!

I'll go with my PayPal method while learning BH and if/when it takes off I'll pay tax on it
The only laws that are strict in Sweden is the money ones, like not paying tax.
Get the same time in jail for not paying tax on $3 as for raping someone