Offshore Inc. for tax-avoidance trading?

Discussion in 'Taxes and Accounting' started by malaka56, Oct 5, 2005.

  1. fhl

    fhl

    Does this mean that a nyse company that had a foreign national as ceo making all the decisions, would technically be a foreign company?
     
    #51     May 12, 2006
  2. That's completely different. Based on foreign laws you can set up a foreign corporation. But according to IRS regulations, if you are a US citizen or resident, they want to know about it because foreign corps. have special tax treatment in the US.

    In your example your talking about an US company that is getting taxed like all other US companies. It doesn't matter that the CEO is a foreign national.
     
    #52     May 12, 2006
  3. fhl

    fhl

    The question was as to who owns it. If I set up a foreign company, but do not own it, I'm not so sure that they will say that I "technically" own it.
     
    #53     May 12, 2006
  4. Your spreadsheet calculations are completely wrong.

    In column 2 you subtract the 18%, but then on the next row, you ignore the money you just removed, and apply the 60% gain to the *PRE* 18% value.

    Basically, your column 2 is nothing more than 60% compounding every year, with 18% removed *one time* at the end.

    With taxes, your end value will be far less than $16,332,952,314.24.

    Besides, where are you getting 18% from? Real taxes are higher than that.


     
    #54     May 12, 2006
  5. Actually, I might have been thinking about accounts. There is an IRS form(TD F 90-22.1) that you are supposed to file describing any offshore bank accounts or financial accounts that you either own OR control.
     
    #55     May 12, 2006