Hong Kong - no capital gains tax

Discussion in 'Taxes and Accounting' started by hunter111, Apr 22, 2008.

  1. hunter111

    hunter111

    Does anyone benefit from, or know of a way to capitalize on the fact that hong kong has no capital gains tax?

    An acquaintance of my friend has a sister that lives in Hong Kong- she opened a brokerage account here (on his behalf but in her name). He trades the account, which accrues no capital gains, and when he cashes out, she gifts him the money back.

    Can anyone think of an alternative arrangement that would allow one to benefit? Are there companies that might offer a similar service?
     
  2. AAA30

    AAA30

    I thought cash Gifts were taxable in the US. Are they not?
     
  3. Yeah but who is stupid enough to report it.
     
  4. gnome

    gnome

    Certain gifts by US citizens are taxable to the giver, not the recipient.
     
  5. Tums

    Tums

    lots of countries around the world has no cap gain tax, not just Hong Kong.
    also, many countries charge a preferred rate of tax for cap gain.