The trick is in getting someone to own the assets/business who lives in a tax haven. If its not in your name then there is no tax due. Its good if you have buddies who live in the carribean and have citizenship.
Yea, thats what they do. Its called income shifting. You shift the net income to a foreign holding company that owns intellectual property and you pay that company your net income. However, if you are US citizen and own that holding company then you are still screwed because of controlled foreign corporation rules. That's why I say, you have to have your carribean buddy own the foreign company so he pays no tax for you.
Right. The trick is to NOT do tax evasion. You have to focus on tax avoidance. The key is structuring the income BEFORE its earned. If you've already made the money then you probably have to pay taxes on it. If you have not made the money then you can structure your business to avoid accruing a tax liability. The easiest method I know is income shift to foreign company that's not owned by yourself! It has to be owned by tax haven citizen. The US cannot tax citizens which are not US citizens.
Its next to impossible to renounce citizenship. Only like 1,000 people renounce citizenship each year. Also if you have significant assets then its 10x more difficult.
