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Is this legal?

Discussion in 'Business & Tax Advice' started by shawnkhorn, Aug 27, 2014.

  1. shawnkhorn

    shawnkhorn Newbie

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    Hello, to avoid paying the high taxes I had someone in a different country make a bank account and register the business under there name, all of the money made is transfer to them then to me in cash. I operate the business from the United States, Is what I'm doing legal? If not what is the penitently for this?

    Thanks
     
  2. Roshaen

    Roshaen Elite Member

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    post the thread in Business & Tax Advice.
     
  3. Ming the Merciless

    Ming the Merciless Jr. VIP Jr. VIP Premium Member

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    You mean tax evasion? Yes, illegal.
     
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  4. intruder2600

    intruder2600 Junior Member

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    It's legal as long as you don't transfer money to your personal account :) Money must stay in country where you have a company. If you want to transfer money without paying taxes and problems read about "tax vehicles" - you won't find it on google :)
     
  5. jaymank

    jaymank BANNED BANNED

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    Seriously ? Thats kinda dumb question...
     
  6. kaplan

    kaplan Jr. VIP Jr. VIP Premium Member

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    No, it is not legal.
    The company in the other country need to pay taxes there.
    Then, when you are getting paid either by cash or any other way, you need to report your income and pay tax in your country.

    I don't know the US laws but I believe you can go to jail.
     
  7. Asif WILSON Khan

    Asif WILSON Khan Executive VIP Premium Member

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  8. DanDanger

    DanDanger Junior Member

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    Tax planning is perfectly legal and smart business practice.

    You however are doing out right tax evasion.

    If you're going to mess around with taxes, you certainly don't post about it on a public forum.

    Al Capone got away with murder, fraud, theft, racketeering and drug trafficking for 33 years. What did he get caught for? Tax evasion.
     
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  9. Trepanated

    Trepanated Supreme Member

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    That word looks like an amalgamation of 'penalty' and 'penitentiary'

    You cleverly asked a question and answered it with a single invented word.
     
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  10. Asif WILSON Khan

    Asif WILSON Khan Executive VIP Premium Member

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    Also OP, your user name looks like it might be real and you have given your country/location in the post.
    Might not want to attract the attention of the Tax authorities Mate.
     
  11. connor51

    connor51 Newbie

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    I would consult a tax attorney, find one that can give you a free consultation. In addition, you might want to get some invoices from that company that's sending you money. I would definitely stop operating and stop accepting money. Even though the damage is done, were not talking more than $300,000 I hope. If that's the case, I would highly recommend getting a lawyer and sorting out your taxes. Also get a good CPA. You should be fine, just stop accepting money for now
     
  12. Zwielicht

    Zwielicht Moderator in Training Jr. VIP Premium Member

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    At first glance, I thought the OP was talking about tax inversion, which is "relocating" a company in a lower-tax country which still operating in their base country.
     
  13. JoeMongan

    JoeMongan Jr. VIP Jr. VIP Premium Member

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  14. koolkake

    koolkake Regular Member

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    How many people I've known that went to federal prison for tax evasion.... too many.
     
  15. myinternetempire

    myinternetempire Jr. VIP Jr. VIP

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    I am not sure about it. I think it would be better for you to consult with a lawyer. A lawyer may help you better than civilians.
     
  16. OaktownGary

    OaktownGary Newbie

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    Google FATCA. Virtually no bank in the world will keep a secret from Uncle Sam. You better really trust this someone else holding the money for you...there are ways you or your associate will trip up eventually. If you want a legit way of doing this consult tax attorneys who might give you better advice. If you ask me, its better to pay your taxes and sleep better at night.

     
  17. xNotch

    xNotch Registered Member

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    I thought this was something big companies did all the time. Using subsidiaries located in places with lower taxes then transfering back to themselves at lower rates.
     
  18. RWoodJr

    RWoodJr Newbie

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    IF YOU CAN'T UNDERSTAND THE DIFFERENCE BETWEEN "THEIR" "THERE" AND "THEY'RE"......

    Then you probably shouldn't be trying to come up with schemes to evade taxes.
     
  19. Saviour

    Saviour Junior Member

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    Lol its purely illegal dude
     
  20. spmcnerd

    spmcnerd Regular Member

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    How much you making to graduate to level?