Is this legal?

xNotch said:

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.

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Large Multinationals like Apple, GE etc do business and make profits wherever they operate. They create legal companies in a no tax or low tax country and keep the profits there. If they bring it into the U.S. they have to pay corporate taxes. These companies say since they profited elsewhere they should not have to pay tax in the U.S. for foreign earnings. Most of these companies are sitting on billions of dollars. However they don't find ways of bringing in the cash in suitcases or other means to avoid paying the tax Apple had about $100B in offshore tax havens. You can Google Citizens for Tax Justice for reliable info. Its getting so crazy that Apple is borrowing several billions in the U.S. while sitting on cash overseas....go figure. BTW for individuals, if you a U.S. citizen or a permanent resident you owe IRS income tax on worldwide earnings (if you have any), not just U.S. income.

Yeah... That isn't legal... If you want to make it legal, you want to travel to that country and set everything up there with the intentions of running it from that country regardless if your permanent residence is in the US or not, otherwise it is going to be classified as tax evasion

Thats a stupid solution.Ilegal and easy to get caught and cheated by your friends