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Linked Bank account with Paypal. Need Tax Guidance.

Discussion in 'Business & Tax Advice' started by maamli92, Apr 27, 2017.

  1. maamli92

    maamli92 Registered Member

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    Hi there,
    I have been using Ebay/paypal stealth account. Since I am not from US, I have linked a friend's bank account with paypal who routes money back to me.

    I am ready to pay taxes but how should I handle taxes for him here?
    1. All the deposits from paypal are shown as income (without any expenses on his name). So it appears that he will be charged for the full amount instead of income-expenses. That will render me in losses. Any solutions?

    2. Will invoicing him through any channel work?

    I had to stop all my selling activity due to this issue so any help, connect, services in this regard are highly appreciated.
     
  2. pressrelease

    pressrelease Power Member

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    Your friend has to pay all tax amount, you can pay him/her later the amount incurred for tax.
     
  3. maamli92

    maamli92 Registered Member

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    Thanks for the reply. Yes thats how we will do it.
    But how should I show the expenses? As I said, all revenue is shown as income/profit (and no expenses). So the taxed amount is way higher. The expenses are on my name as I am buying the goods.
     
  4. psmanipulator

    psmanipulator BANNED BANNED

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    Where are you from sir??
    If you are in a country that you can avoid paying taxes then you wont need to problem it.

    You can also use the funds in paypal to buy btc then you withdraw btc to an atm or trade locally.

    Well if you wanted to evade high taxes there are many ways..
    Such as not paying..
    Deducting your year expenses to your income. Need an accountant for this
    Changing your ebay paypal and using from some country that doesnt really look into taxes... in online earnings
     
  5. maamli92

    maamli92 Registered Member

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    I wanna do just that. But as in my case, I am buying the goods for sales not my friend (not showing as my friend's expenses). Have you or anyone faced a similar situation? Any solutions?
    I am from Pakistan. I have heard the bitcoin option is not good as it may attract suspicion in the long run and have high fees etc.
     
  6. psmanipulator

    psmanipulator BANNED BANNED

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    If you are buying the goods...then you can just ask your friend to keep every receipt or get any receipt to be used in his expenses to lessen taxes...
    Bitcoin is sexy though...
    Have you thought of instead of you buying why not ask your friend to buy the goods for you so that it will be deducted from his taxes if ever..
    Then transfer whats left to you...
     
  7. maamli92

    maamli92 Registered Member

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    Will my receipts count for him?
    Yes, we thought of making all expenses on his name, but that will increase his involvement and time commitment into the business. And we have to fish for him everytime we do something new. this makes the whole process so much slower.
    Any recommended bitcoin service? Have you done this process before?
     
  8. psmanipulator

    psmanipulator BANNED BANNED

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    Yeah your receipt will count as long as your name is not there...
    You can find paypal to btc service here..
    I buy n sell btc but i dont have funds now..

    Just look for someone you see trustworthy or feel confortable to deal with (mods or high rep sellers)
     
  9. thetoothfairy

    thetoothfairy Power Member

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    Why dont u link ur pp account to bank in ur country ? Pp is not available in pakistan?
     
  10. maamli92

    maamli92 Registered Member

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    yup not available in Pakistan.