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Avoiding Tax - Offshore Accounts?

Discussion in 'Business & Tax Advice' started by florflor, Jul 26, 2008.

  1. florflor

    florflor Senior Member

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    I have heard of people having an ATM card that is linked to an e-currency such as e-gold or pecunix.

    And then they only use affiliate programs that pay out to these and where a real name is not even necessary - I'm talking here about the likes of pharmacy affiliate programs, probably because these themselves are also located in strange offshore or quasi-offshore jurisdictions.

    Is it true that you can get away with totally anonymous revenue and not declare some earnings, ahem, theoretically speaking, of course ;)

    Does anyone know more about this or can please point me in the right direction?

    Thanks
     
  2. MR.blackhat

    MR.blackhat Regular Member

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    I would like to know this also...
     
  3. bluey

    bluey Registered Member Premium Member

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    If you are US citizen you taxed on your Worldwide Assets and it's avisit to Jail if you get caught. 9-11 gave the money laundering laws a big shake and very few places are Anonymous anymore.

    If the US IRS catch you it is a spell in pokey and they guess your tax liability (not favourably) . Many US people who worked off shore for years Saudi and the like were prosecuted when they went back after 9-11.

    In addition for UK and most of Europe any offshore jurastiction (sorry about my spelling) all the obvious offshore havens close buy declare to the UK and most European Tax Authorities. That is Jersey, Guernsey, IOM , Gibraltar.

    Cayman and Maritius and I believe Seychelles still keep anonimity but they cost serious cash and not (apart from Cayman that stable) Cayman will release information if any evidence of Drugs or Terrorist activity.

    Things may have changed (got worse) so check carefully on individual locations forget Vanawatu it's anon but in the middle of nowhere and not recommended.

    Best bet if US citizen is set up US corp and use nominee directors you'll still get stung for personal taxation but corp can keep your name anon.

    In addition bank accounts are an even bigger headache so keep this all in mind unless you are banking serious 7 figures plus just pay the tax or risk jail.

    In the words of a once very popular TV program "Be careful out there"

    I used to do this for a living the best bet we found for US citizens was use US official tax vehicles such as well funded Universal Life Polices. I sold these all over Europe and Middle East.
     
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  4. florflor

    florflor Senior Member

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    Thanks. I also found a good thread on another forum, obviously I can't post the link. Can I copy and paste the info in here? It was very good info.
     
  5. Botterman

    Botterman Registered Member

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    be careful ex-employee of a Lichtenstein Bank for a CD containing all the account holder information of foreigners having foundation accounts in a Lichtenstein bank. The German government paid this individual either $6,000,000 or $7,300,000 depending on which account one wishes to believe.
    http://www.panamalaw.org/lichtenstein_bank_secrecy_scandal.html
     
  6. MoneyMafia

    MoneyMafia Regular Member

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    Let's put some light in this ...


    Offshore accounts doesn't necessary means tax heaven ... Offshore is basically doing business in OTHER country that you(or your company) reside.

    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

    There are more ways like fake expenses etcetc.
    Now I hope you get it why tax heavens are useful :)

    Another strong point is anonymity. Before getting a bank account or company in an tax heaven you need to make sure that country/bank doesn't have a special contract with your country to exchange infos .. If it does than is not for you...

    Also you should know that tax heavens have special regulations for doing business in that country.For example if you set up a company in New Zeeland and you're doing business in NZ you need to pay taxes like a regular NZ company..if you're doing it outside no special taxes

    Another aspect:
    Different tax plans for activities.... If let's say you want to start an online casino and you incorporate it in Panama you have to deposit in their banks a huge amount as guarantee (1 million $ If i remember well) but in Costa Rica no special deposit is required.. The license is only around $1.5K

    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


    bluey .. Vanuatu is good for getting car new license plates. I think there is the only jurisdiction where you can enlist your car without its presence there.. All your speed tickets will go to Vanuatu ..pretty cool huh ;)
     
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    Last edited: Jul 27, 2008
  7. raggerty

    raggerty Newbie

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    I had very little interest in buying some IBC in a supposedly good jurisdiction and then spend an age trying to setup bank accounts etc. Banking introductions are one thing ... guaranteed account openings (done by this provider) are another. I value my time. I will always invest more in dealing with pros who save me hassle, time, mistakes ... than try to "save." Quick fixes and cheap solutions do not seem to be the sensible thing to do when it comes to areas as sensitive as these.

    A few basic highlights (from their info):

    The Company
    ? Tax Free
    ? Nominee Director Supplied
    ? No Accounts To Be Filed
    ? Bearer Shares
    ? No Beneficial Owners Name on Record
    ? Total Confidentiality
    ? Ideal Trading or Asset Protection

    The Bank Account
    ? Major European Bank
    ? No Bank Reference Required
    ? No Credit Check
    ? Visa Debit Cards
    ? On-line Banking Available
    ? Sterling, USD & Euro Account Numbers
    ? Personal Bank Officer English Speaking

    send a pm if interested....
     
  8. Freddie

    Freddie Registered Member

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    Thanks for these insights I am sure it will make things clearer to a lot of readers
    To avoid this from lowering their tax revenues governments in various countries have put laws in place that make that less legal....

    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.


    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 :rolleyes:
     
    Last edited: Sep 2, 2008
  9. genie1

    genie1 Junior Member

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    I don't know about in the U.S., but in Canada I hide earnings running a few cash businesses and make sure that on paper they're all in a ''loss'' at the end of the year. Every 3 years I reverse it and profit but pay far less tax than I would have profiting all 3 years ;)

    p.s. dont do this unless you really know what you're doing :)
     
  10. sugarpimp

    sugarpimp Registered Member

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    I would like to know which big shopping mall accept a bill from a offshore company or make a money transfer to a offshore account, to take the risk to get fucked by the IRS;)....?
     
  11. kalekom

    kalekom Junior Member

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    For US it's Canada for example...



    Offshore accounts doesn't necessary means tax heaven ... Offshore is basically doing business in OTHER country that you(or your company) reside.




     
  12. djedje70

    djedje70 Regular Member

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    none of ur fr#$%ing biz dude!!!
    I was looking into it as well some times ago.
    The best solution I found involved opening a trust in an offshore paradise (below 10% income tax) and then be the primary employee of that trust. So your checks would have to be made to the order of that trust. You would then need to apply to a Visa debit card connected to your offshore trust bank account.
     
  13. dogdog

    dogdog Regular Member

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    Most people in my country (Non-US) thought that the tax dept will investigate their suspect but the truth is, if you are the suspect, they will ask you to justify and provide proof (legal document, statement etc), to prove yourself innocent. So no matter how hard you hide your income, you still need to find ways to explain, justify and make it looks legal. Unless you never purchase any asset (house, car etc) your entire life.

    So the main point is "Don't do something that make you looks suspicious" eg. buy a big house. If one can understand this, then no need to waste energy by trying hard to hide the income because it doesn't helps. It's you who need to provide reasonable answers to the tax dept, not the tax dept to find proof to charge you.
     
    Last edited: Sep 3, 2008
  14. Uptownbulker

    Uptownbulker BANNED BANNED

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    I'm in a grammar Nazi mood today but it bugs me............

    It's tax "haven", not tax "heaven", although one might consider a tax haven to be a kind of heaven!:)
     
  15. sugarpimp

    sugarpimp Registered Member

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    Well, maybe you should read more about offshore business, if you choose or think Canada is one, good night. They have closer ties with USA, than you can imagine. Some keywords for you, if you want to know more about offshore and tax havens; OECD, FATF, FINCEN, IBC and IRS.
    To go in further details, would be take too long, have fun to read and google;).
     
  16. oqsales

    oqsales Junior Member

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    duplicate erased
     
    Last edited: Sep 4, 2008
  17. oqsales

    oqsales Junior Member

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    It's possible to collect online money without every providing a real name or any fake documentation, and while making it extremely difficult for the money to be tied back to you. And some countries do not enforce or barely enforce tax collection. So it is quite practical to avoid taxes if you are willing to relocate. Plus there are many advantages to living in countries with low cost of labor.

    As for storing income, one can use local banks, but or better yet invest in various local small businesses - all cash. Rent out motorcycles. Loan money against collateral. Import/export. Invest in a fish pond for profit sharing with a farmer. There are many ways to keep collateral that don't involve paperwork or paper trails. And besides, banks and money fluctuate, but food is forever a staple value. Governments have a hard time counting those greens.

    That said, I've had a few anonymous offshore accounts, and they were handy. I'm thinking laundering is taking on a different look nowadays - cash is where it's at - not cash deposits.
     
    Last edited: Sep 4, 2008
  18. BlackSmack

    BlackSmack Junior Member

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    Don't fool yourself, tax havens are for the wealthy who can have permanent residence outside the US, not just start a company and have residence IN the US, it doesn't work like that. There's no "trick" to tax havens, they exist but not to joe shmoe starting an internet company making a couple hundred grand a year.

    If you think you can live in the US, run a company and not pay all your taxes you'll have plenty of time to learn US Tax law in the prison library.
     
  19. misterajc

    misterajc Registered Member

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    Most of the former tax havens now make their banking information available to the US, so don't think that you can hide your income like this.

    One way to keep your information out of the hands of the IRS is to set up an account with a non-US passport. You are entitled to an Irish passport if one of your grandparents was born in Ireland. The rules are similar for an Italian passport but it favors the male line. If you have an EEC passport then you should be able to set up an account at one of the offshore UK islands like Jersey or the Isle of Man.
     
  20. qwertyboy

    qwertyboy Newbie

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    Wow..

    This is what you do..this is a 10,000 ft overview for usa dudes and dudettes

    1. Set up off shore corp(s). Many countries to look at
    2. Set up off shore Bank account for this corp(s)
    3. All your USA assets put into one of these corps. Depending on state you live in, this corp MIGHT have to own a CORP in your state first
    4. All your offshore money, is offshore. What you bring to usa you have to pay tax on...So leave it there in a savings account
    5. Someone breaks leg in your yard and wants to sue you for everything you got ? Good. You don't own crap now, they sue offshore corp. You think Panama, Belize, etc will honor a usa judgement? Um no
    6. When you bring in cash for you pay taxes....Wait, your car in company name,, not yours..company gave you money for gas allowance ? Then don't claim it

    This is the basics. Legal to "defer" taxes...Not avoid them
     
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