Give up American citizenship. Like Tina Turner and probably others did before here. Or go live in Syria, ISIS will never declare your profits to the US.
Caymans. http://www.caymannewresident.com/cayman-immigration-entry-requirements Just remember that if you remain an American and hide taxes from the US govt in a foreign country, you can be prosecuted under Anti-Terrorism laws. The only viable way to skirt American government taxation is by having deep old world/third world ties and relinquishing ownership and management of your assets completely. Distributions is really where it gets complicated but cash can be expatriated back to the US via money belt with a $10,000 limit per person. My Filipino Aunt will gladly transport the nominal value for you in the form of dried fish. TSA is afraid to open her styrofoam coolers. Diamond smuggling has been a practice for almost a century, but you need deep ties in New York to liquidate at a fair price.
....Diamond smuggling has been a practice for almost a century, but you need deep ties in New York to liquidate at a fair price.[/quote] ...all you would need is to deal with someone with a Rapaport account... of course, you would probably be losing more selling via an intermediary than you would have paid in taxes.
There might be a better place than Monaco, among >100 countries in the world. Instead of 40% tax rate (like in 1040 highest bracket), possibly country with 20% tax rate might be a second choice, if the country provides safe living condition. Following the above example, suppose we have seed of $100K and annual 20% performance of profit before tax. A) If CapGainTax rate is 20%, then your profit is roughly 16%, which will be compounded to 100*1.16^50 = 167070.4 = 167M over 50 years B) If CapGainTax rate is 40%, then after-tax rate is roughly 12%, which is compounded to 100*1.12^50 = 28900.22 = 29M after 50 years. Therefore choose a country of residence with 20% CapGainTax rate, for the diffference of 167-29 = 140M roughly over 50 years. It helps to your asset, even after paying airfare and room.
This is similar to the following situation. If CA sales tax rate is 10% and Delaware is zero percent, this means that CA governor are everyday saying "Please move to Delaware anytime on your own choice. Stay here if you wish to pay the sales tax of 10%"
...all you would need is to deal with someone with a Rapaport account... of course, you would probably be losing more selling via an intermediary than you would have paid in taxes.[/quote] Rapaport would be a paper trail. But yeah, things get silly/stupid when you try to bring money back to the States. There is also an black market network of money changers used by illegal US immigrants to expatriate money to relatives. I assume it works in reverse.
Rapaport would be a paper trail. But yeah, things get silly/stupid when you try to bring money back to the States. There is also an black market network of money changers used by illegal US immigrants to expatriate money to relatives. I assume it works in reverse.[/quote] Rapaport sets the price (auctions and the Rapnet price), and there is a paper trail... due to the nature of diamonds and diamond auctions, it would be hard for a small timer to get less than 20 back from the Rap auction price. then there is the procurement process and cost and the smuggling hassle/criminal charges. I only see it working out for bold organized crime type high criminality and at the rinky dink level, but I could be wrong.
Sound points, mint. I stiil theorize a New York bagel stand as a great tax sheltered investment, but we are traders after all. For us most Joes, http://internationalliving.com/ is the foremost expert source of financially independent expatriate living with tax savings as a major focus amongst many. Has anybody taken advice from these publications?
If your aim is to pay 20% then that's quite easy. Countries like Estonia (20%), Latvia (15%), Romania offer this and the first two don't have any security issues. All countries have their peculiarities, which I'm not going to talk about, Deloitte's leaflets are available online and offer good (and reliable) information.