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Is this legal?

Discussion in 'Business & Tax Advice' started by Ghoast, Nov 13, 2011.

  1. Ghoast

    Ghoast Power Member

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    My website is hosted off-shore. It's 'owned' by an off-shore company - an International Business Company or IBC, all profits are sent to the IBC's bank account which is also offshore.

    I don't pay myself a salary from the IBC but I do have access to the money obviously!

    Can I live in the UK and not have to worry about paying any tax on this operation.. Although I do have access to the business I'm not the owner, the IBC is the owner, although I do own the IBC. The IBC has no connection to the UK at all.

    Is this all legit? What's the deal? Thanks very much!
     
    Last edited: Nov 13, 2011
  2. 2DHades

    2DHades Power Member

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    As long as you keep the money in the off-shore zone you don't have to pay tax in the UK (Would be a non-sense to be otherwise).

    However, I believe that if you transfer your money from the off-shore zone you to your bank account in the UK you will have to pay tax. I have a company in off-shore zone as well and that's the case (Im not in the UK)

    Cheers,
    Hades
     
  3. GlobalP

    GlobalP Regular Member

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    Sounds to me that if you never get the money in hand in your country and only use it online. Even if you use it to get stuff shipped to you from purchasing online. You might have a loop hole. I am not a legal adviser but just saying how would they track that?
     
  4. Paranoid Android

    Paranoid Android Jr. VIP Jr. VIP Premium Member

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    you will have to pay taxes for the money you bring in to any country, if your money lies offshore you don't have to pay taxes in your home country, but whatever small amount of money that you bring into your country from that ibc account is taxable. so say you have a million bucks in the offshore account and you withdraw about 2k a month for your expenses, you will have to pay taxes only for the 2k, and you can call it your salary from the ibc
     
  5. dowser

    dowser Power Member

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    This is something I'm interested in more and more...
    I've heard that you can do that if you have an abm (interac) access card connected to your account - I'd still change my machines frequently as they do have cameras.

    I'd appreciate it if you could connect me to some reliable resources. PM would be preferable. There used to be a membership site, but it's been a few years and I'm out of circulation.

    I was wondering if you could buy real estate using the IBC...
     
  6. Ghoast

    Ghoast Power Member

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    So in theory this would be the best way to save the bulk of the money you don't actively need each month. Then just pay yourself a salary from the IBC which you would declare and pay tax on..

    Would you fall into any problems if the tax authority found out you own the IBC?

    Also I can easily get a debit card which is directly linked to the IBC bank account. Can I just use this in the UK to buy whatever I need? Can I go so far as to use the IBC to pay my monthly rent in the UK?
     
  7. Kickflip

    Kickflip BANNED BANNED

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    Yes you can do anything if you don't get caught. Please always state if you are trying to stay 100% legal or just asking "if its possible."
     
  8. Ghoast

    Ghoast Power Member

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    I want it to be legal... or completely untraceable.. either way I don't want to get bit in the ass in years to come..
     
  9. xxf8xx

    xxf8xx Supreme Member

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    I think it will be fine but like snipe said you should ask a professional.

    Cheers
     
  10. killer007

    killer007 Registered Member

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    I think its Fine if you are going to use it Online or you transfer it to your own account at UK because it the transfer will deduct all the taxes on the go but if you bring the money IN by other raw method then it will be a problem so you better consult someone who really knows about Laws.
     
  11. xxf8xx

    xxf8xx Supreme Member

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    Also, use a more relevant post title next time please.
     
  12. cornkernel

    cornkernel Regular Member

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    can anyone tell me where i'd be able to go online to find out more about this?

    i would look it up, but it'll take hours probably to find a site about this that isn't going to want to scam me or want something in return for the information.

    thanks in advance... :)
     
  13. bertbaby

    bertbaby Elite Member

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    LMAO with that comment. Remember the risk is commiserate with the amount of dollars involved.
     
  14. destiny0awaits

    destiny0awaits Newbie

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    I am not sure about the legals there but i own an offshore company and all my payments are forwarded to my payoneer card which i use to withdraw money from ATMs
     
  15. Standard

    Standard Junior Member

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    Good point.
    My ideal lifestyle would be as a perpetual traveler.
    My goal is to be making 20k a month by my mid 20s so I can travel around the world in style.

    Guys, check out Dr. Hill's book on this topic. It really opened up my mind to the possibilities. The tax implications are also very interesting as you'll save up a massive amount that you would have otherwise paid in all kinds of taxes(especially if you're in a high tax rate country).
     
  16. naturalbornthriller

    naturalbornthriller BANNED BANNED

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    If you get a debit card and business checks, you can buy or spend whatever you want to out of the IBC account. The only way you get in trouble or caught is if you transfer money to your personal bank account in the UK. Then it is taxed, and might bite you in the ass. You could talk to the people at the IBC Bank and find out how to get money out of the account if needed. A wire transfer would also get you nailed eventually since it has to be wired to your account which would be taxed when your UK bank reports it on their taxes. It might be more difficult but safer to just fly to the IBC Bank and take out a lump sum if you need to. What's a grand or two for a flight if your pulling out a large amount of money?
     
  17. YodaX

    YodaX Registered Member

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    Which book is that? Got the full title?
     
  18. Ghoast

    Ghoast Power Member

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    What's the most amount of cash you can travel with without having to declare? It's about £10,000 isn't it?
     
  19. sciter

    sciter Junior Member

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    Depends on from where to where you want to travel.
     
  20. Ghoast

    Ghoast Power Member

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    anywhere into the EU..?