Continuing the Cayman conversation
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We were having an interesting conversation about Cayman Island tax shelters when Ed locked the thread because the OP was a HO. So let's continue the conversation here.
http://www.contractortalk.com/f16/how-do-i-not-pay-taxes-business-62456/#post733920
Quote:
Originally Posted by nEighter
nope you are right. They are actually here, their main facility is here. BUT they have a 1 room office that is their "headquarters" and get to suck a ton of life out of the local economy while having their nice lil tax shelter out there. I wonder if they need that office cleaned :w00t:
Wait a second, how does that work? Could I headquarter "Bob's Lawn & Landscape" in Grand Cayman and not pay the IRS any money? I don't get it. What's the catch? You seem to actually know more than urban legend and rumor. What's the skinny?
http://www.contractortalk.com/f16/how-do-i-not-pay-taxes-business-62456/#post733920
Quote:
Originally Posted by nEighter
nope you are right. They are actually here, their main facility is here. BUT they have a 1 room office that is their "headquarters" and get to suck a ton of life out of the local economy while having their nice lil tax shelter out there. I wonder if they need that office cleaned :w00t:
Wait a second, how does that work? Could I headquarter "Bob's Lawn & Landscape" in Grand Cayman and not pay the IRS any money? I don't get it. What's the catch? You seem to actually know more than urban legend and rumor. What's the skinny?
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Me tinks your leg was pulled!!!
http://seattletimes.nwsource.com/html/nationworld/2003166444_taxevasion01.html?syndication=rss
Garmin is the one I posted about. They are actually here in Olathe. BUt have a 1 room office in the caymens at that address I posted. There was an article in the Kansas City Star about it. I can't find it right now, still looking.
Garmin is the one I posted about. They are actually here in Olathe. BUt have a 1 room office in the caymens at that address I posted. There was an article in the Kansas City Star about it. I can't find it right now, still looking.
So I need a $10 a month PO Box in the Cayman Islands and I don't have to pay the IRS any taxes? Why isn't everybody doing this?
Uh - as you describe it, because its illegal
That is for corporate tax, you still have individual, etc...
You would probably pay more in lawyers fees & accounting fees in 1 year than you would save in 10
That is for corporate tax, you still have individual, etc...
You would probably pay more in lawyers fees & accounting fees in 1 year than you would save in 10
That's kinda what I figured. Bummer. I was hoping for $120 a year I could save thousands in taxes and live like a king.
Everyone giving advice on evading taxes in this and the locked thread has some responsibility for the state of the economy today.:thumbdownYou are all a bunch of
:surrender: monkeys no better than sama: or irate: and you should all be :hang:.
Hey Charlie - will you tell us how you really feel, this fence sitting crap is for the birds. :jester:
Now don't worry to much, a few audit flags probably just got set
Now don't worry to much, a few audit flags probably just got set
Bob,
I'm surprised you are not telling us how to do this as I understand you are from Germany. It's pretty simple and it used to be done from Germany in Luxembourg.
You establish a corporation in Luxembourg and do your business as a branch in Germany and your tax liability is in Luxembourg where the tax rate is lower, hopefully 0%. You repatriate your profit from Germany back to Luxembourg as a consulting fee. Let's say your profit for the year was $50,000. So you send it to Lux as a consulting fee and you no longer have a profit. You realize it in Lux and pay no tax. You either smuggle the cash back to Germany or just keep it in Lux and write checks off it.
This was good into the late '80's. I don't know if it works anymore there, but it always works somewhere. Globalization is not the friend of the small businessman. The key is to find a regime where they are willing to deal.
Whatever happened to Charles Taylor and Edi Amin?
It used to be that there was a thing called a foreign sales corporation also. You could keep your profits in it and not pay any income taxes on them and pay your expenses with it. You couldn't repatriate it directly. So you could probably pay your children's education, your vacations, your automobiles, your mortgage, pretty much everything except your salary. And if you wanted to go there and pick up some cash, you could probably do that.
I'm surprised you are not telling us how to do this as I understand you are from Germany. It's pretty simple and it used to be done from Germany in Luxembourg.
You establish a corporation in Luxembourg and do your business as a branch in Germany and your tax liability is in Luxembourg where the tax rate is lower, hopefully 0%. You repatriate your profit from Germany back to Luxembourg as a consulting fee. Let's say your profit for the year was $50,000. So you send it to Lux as a consulting fee and you no longer have a profit. You realize it in Lux and pay no tax. You either smuggle the cash back to Germany or just keep it in Lux and write checks off it.
This was good into the late '80's. I don't know if it works anymore there, but it always works somewhere. Globalization is not the friend of the small businessman. The key is to find a regime where they are willing to deal.
Whatever happened to Charles Taylor and Edi Amin?
It used to be that there was a thing called a foreign sales corporation also. You could keep your profits in it and not pay any income taxes on them and pay your expenses with it. You couldn't repatriate it directly. So you could probably pay your children's education, your vacations, your automobiles, your mortgage, pretty much everything except your salary. And if you wanted to go there and pick up some cash, you could probably do that.
Fence sitting? How so? I just think the off shore stuff is BS. Live in the US. Operate in the US. Pay (your share) in the US.
Audit schmaudit....HEY IRS - :tt2:.
Audit schmaudit....HEY IRS - :tt2:.
Hey Charlie - will you tell us how you really feel, this fence sitting crap is for the birds. :jester:
Now don't worry to much, a few audit flags probably just got set
Yeah, but how do you really feel. :laughing:
ontop of the laywer/accountant fees your also going to still be giving money to the US gov because in every place you work you will be paying a foreign corporation doing business in ____________ fee. As well as your salary still being taxed at the individual US level which is most times higher than the Corp tax rate.
Headaches headaches headaches, filing fees filing fees filing fees, screw it just do it by the book. And keep your money in the business, pay yourself a decent salary and grow your business.
Headaches headaches headaches, filing fees filing fees filing fees, screw it just do it by the book. And keep your money in the business, pay yourself a decent salary and grow your business.
Bob, if you set up one of your gnomes permanently in the islands (with power of attorney) you'll be fine. :shifty:
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