Discussion in 'Professional Trading' started by praetorian2, Apr 12, 2002.
skrilla, can you post some of that article. Does anyone know how soros has his fund set up?
Soros uses Citco [www.citco.com] Physically/legally his funds are set up in the Netherland Antillies.
Then how does he avoid paying us taxes on his gains?
offshore trading is best when the Tarpon are running.
I tried looking for it on the IBD web site but it is in a special feature in the paper so there was not a live link to it on the web site. If you really want it I will scan it when I get home and post it.
I'm not an expert on tax laws but I've heard that until he repatriates the funds he won't have to pay tax on them. No doubt Soros and his like have the absolute best legal advice on earth. So if he is doing it, there must be a way.
I could be wrong, but I think that Soros (and all those running offshore funds from the US) can build up capital in the offshore funds by keeping his incentive fees invested. Over the years, this of course has turned into a hugh amount of money. Until he cashes out and repatriates, he does not owe tax.
I do not think that he could just put his own money into the offshore fund and not pay taxes on gains.
Haas, it isn't that simple. Soros would never simply put his personal money into a fund. There are legal structures (corporation, LLC, trust, etc.) that would be involved. In anycase, I read the IBD article and it does say that this is the key.
That if you do not repatriate the funds you do not pay tax on it. Until you finally do that is.
Say I wanted to set up something like this legally, how would I do it? Irregardless of cost, how do you set it up. Why on earth aren't we all?
To P2. There are plenty of companies that will help you form an offshore corporation and advise you on legal aspects.
I'm definitely far from knowledgable on all this...but I have looked into it and it seems that it can all be done. (I don't mind paying taxes for now, but I think in the next year or so I'll be making a move.)
Why doesn't everyone do it? Fear of the unknown maybe? Not aware of it? Feel its unAmerican not to pay taxes? Who knows. I just hope it stays that way. I'd hate to see everyone rush in and do it and have a worldwide outcry by governments and have it shut down (which is what they seem to be trying now anyway).
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