avoiding taxes

Discussion in 'Taxes and Accounting' started by ech15, Apr 21, 2006.

  1. ech15


    i've been trying to figure out a way to avoid these insanely high taxes in US. turns out that the only way and the best way is to just leave the country and goto some place where there is no capital gains tax. while i'm still undecided, i'm actually even giving this a thought..

    now i keep reading about "offshore company". has anyone ever tried making one?


    i see one company here that literally makes one for you in Hong Kong. I mean is this why all the big ibanks have HK has their primary registered Asian office? has anyone ever used this method?

    "Our clientele include many foreign investors from a wide range of industries. Many of these foreign-owned HK companies do not have operations in HK and use our office as their registered office address. Therefore their profits are considered to be offshore income and not subject to HK taxes.
    It is common for a foreign-owned company in China to have a HK holding company because in HK, there is no foreign exchange control, it is easier to have letter of credit facilities and its tax rate is low.
    HK Profits Tax for businesses with operations in HK is at 17.5% on their assessable profits."

    this sounds like i can live anywhere i want and trade as long as i'm not in USA. by keeping an offshore company to report my earnings. i won't be subject to any sort of taxes, am i understanding this correctly?
  2. fullmoon


    Lot's of "tax haven" services and worse, attorneys, bankers and the likes are paid shills for the US govt. You better know what you are doing. Clearly YOU don't.

    And remember, in the eyes of the IRS there is a HUGE DIFFERENCE between under-reporting of income and tax evasion.
  3. wrong. if you are a us citizen you will owe the tax no matter where you live.
  4. Cesko


    Does anybody know where can I find information about the kind of set up offshore hedge funds use( Soros etc.)? Where you cannot have American clients and unless you repatriate earned money to the U.S. it's supposed to be tax-free.
    Tax code number or anything.
  5. The idea is to form a company, offshore, pull a salary and pay your taxes on that, leaving your excess capital to invest and compound tax free until you need it.
  6. Yep, USA and the Philippines. Only two countries that tax income on its citizens no matter where they live.

    There is one proven method to stop the tax man. Renounce your citizenship. There is no amount of money that would entice me to do such a thing however. The way I look at it, if I'm paying a lot, I'm making a lot.

  7. Check out sovereignsociety.com or escapeartist.com. I am not affiliated with either, but they both specialize in expatriate offshore issues. Regarding the hedge fund specifically, I don't know. I have just looked into offshore for some time and these are best two and appear to be the most reputable that I have seen. Regarding taxation, if you are a US citizen or Perm Resident you are taxed on your worldwide income, with an exemption of 80k per person or 160k per couple. Here is the link. There are alot of husters in offshore kinda like trading. Be careful

  8. You will still have to pay self-employment tax on the 80K.
  9. You should have called the thread "Avoiding death" -- it's just as likely :D
  10. zdreg


    this thread like most threads on this subject is full of erroneous facts half truths and misinformed .opinions and presumptious assumptions,

    do a through investigation and you will do just fine.
    #10     Apr 24, 2006