#PanamaPapers

jazzc said:
It's not THAT simple, no. If you are a resident of a country that taxes your worldwide income AND you don't have office/workers on HK, there's a thing called "Controlled foreign corporation" rules which most countries have and it means this: Your tax man will tax your company AS IF it was local.
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Are nominee shareholder enough to get around it, or would a trust have to be formed, and then the company formed with the owner being the trust?
 
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Capo Dei Capi said:
I won't be making sales myself the company will be making the sales online.
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If they find out that you are operating the business from another place than Hong Kong, you will be reported to your countries authorities and have to pay taxes back for all the years you were pretending to operate from HK. It doesn't matter where revenue is generated, it only matters if you are running your business from HK or not.
Research it, there have been several cases where HK authorities found out and reported 'setup/mailbox' companies that then had to pay back tax in their own country for several years!
 
MonsterMag said:
If they find out that you are operating the business from another place than Hong Kong, you will be reported to your countries authorities and have to pay taxes back for all the years you were pretending to operate from HK. It doesn't matter where revenue is generated, it only matters if you are running your business from HK or not.
Research it, there have been several cases where HK authorities found out and reported 'setup/mailbox' companies that then had to pay back tax in their own country for several years!
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I'm not going to be using HK btw.

But I won't be operating the business from where I live, the business can own apps and websites and the 'owner' who is an employee of the company can get a salary from the company for his or her work.

Work is just making the website, creating the app it isn't selling or getting the visitors.
 
Aatrox said:
Really hope this goes trough and people go in jail or something.
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You do realize that many people on this very forum have Seychelles (or other tax heaven) LLC set up for their IM activities?...

qrazy said:
Seriously? Don't you know that the rules and laws are only for the poor.
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"Laws are like fence - Tiger jumps over, snake slithers by, and cattle doesn't wander out."
 
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Profits Tax - Permanent Establishment

According to IRD, the following activities will not be regarded as a permanent establishment:


A place for storage, display or delivery of goods only;
A place for maintenance of goods only;
A place for maintenance of goods to be processed by another enterprise;
A place for purchasing or advertising goods or for collecting information for the enterprise;
A place for carrying on an activity of a preparatory or auxiliary character for the enterprise;
A place for any combination of the above activities which is of a preparatory or auxiliary character for the enterprise.


Besides, a "representative office" in Hong Kong is not regarded as a permanent establishment on satisfying the following conditions:
the activities are for the enterprise itself;
the activities do not directly generate profits; and
the functions of the representative office are only of a supportive nature.
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Source

These are the requirements to be considered a permanent establishment. If you don't fulfill these, you are not eligible of 'getting taxed' in HK. If they find out later on, let's say 10 years later and you spent all the money you thought you saved, you are bankrupt in the blink of an eye.

Edit:
Just saw your reply, well I don't know of other countries and how they handle it. I was talking about HK all the time...
 
Predictions:

1) The leak will eventually boil down to a single responsible person. They will promptly be https://en.wikipedia.org/wiki/Poisoning_of_Alexander_Litvinenko, as I don't think Russia will be accommodating this time.

2) Like most big data leaks, nobody is going to give a fuck in six months except the basement whiners with no pull.

3) Upon general whistleblower "make an example" pushing by some of the other high up people exposed in this leak, Putin will bend laws and have Snowden brought back to the US to face serious charges.
 
MonsterMag said:
it only matters if you are running your business from HK or not.
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The correct statement is "it only matters if you are running your business from the country you are a resident of or not". HK couldn't give a sh*t about (and has no authority on the) taxes you are liable for on your country.
 
seems the govt. just slapped a gag order on reddit.
so now the aclu is getting into it.

a good reason to host overseas! :D
 
Family of Prime Minister of my country is also involved in this... I hope this does change things...
 
MonsterMag said:
I'm aware of that, but thanks for pointing it out for others. Ofc we will have our own office and people working there not just a mailbox. Because else the risk is to get backtaxed for the years you pretended to do business in HK while you did not.
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may i ask why HK though? I've read a bit of part from some offshore investment blog and the guy actually does not recommend HK to me because he believes the banking system there is utter mess (he has lived there and now has moved on). He recommended some specific countries in africa and europe for low tax rate. Besides, according to recent events, apparently investors are leaving HK because of china's political intervention in the country.
 
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