Advice on setups to hide income

[romario]

You can create any company you like, but what good is a company without a bank account?
The banks need to know who's behind the account. And if you tell them you live in Iceland, the Icelandic authorities will be notified about the account.
If you lie to the bank and tell them you live somewhere else, they probably won't share the information with Iceland... until they do, for some reason, for example because they suspect you lied to them. Or because the reporting rules have changed.
I guess I don't have to tell you that lying to a bank or providing forged documents is a crime. So don't do it.

WOW! thanks for the warning
So I should probably not tell a bank in let's say... in Panama that I live in the UEA or somewhere they cant really track me, and definitely not forge documents that proof that I live there either?

But if I where a mad person, in a imaginary world... Is it even necessary to use you own identity versus a made up one? And if someone where to do this successfully how complex would it be too access and use these funds?

This is all illegal and crazy talk in real life, but it is an interesting thought exercise

 

[newNomad]

I guess I don't have to tell you that lying to a bank or providing forged documents is a crime. So don't do it.

Here again we enter into the particularities of the target jurisdiction; I guess in some jurisdictions this could be a serious crime under Penalty code, in some other though it's just a "cavallier's offence"

 

[joffreylol]

These crazy setups were discussed in mentor group so you might check them out. Note that these setups can be short lived (with more and more banks doing kyc often) and can lead to lost funds (banks seizure) and criminal offense

 

[JimBeam]

IMO there aren't many things you can do...

Setting up a Dubai company and getting a visa would work as you would get their Emirates ID and the banks will consider you a local and would not report you, but with 130k/year I doubt it's actually worth the hustle and risks. It will also take you considerable time and money to get things setup... and you will have to go fly twice a year to keep visa active... (that's not a problem you can take your wife and kids for some sun...)

https://www.oecd.org/tax/automatic-exchange/commitment-and-monitoring-process/AEOI-commitments.pdfThe other way would be opening a bank account in non CRS country like Georgia or Montenegro or even a company there could work for another year and a half... so again - not sure if it's worth the hustle... because what if this corona thing extends for 2 more years and you can't go there to close the account down (just an example)...

BTW: How much tax savings are we talking about on a yearly basis?

 

[newNomad]

BTW: How much tax savings are we talking about on a yearly basis?

well the OP was complaining about "60%" burden...so I guess we're talking about 0.60*130k=78k just my 2c

 

[JustAnotherNomad]

This is all illegal and crazy talk in real life, but it is an interesting thought exercise

I was actually serious and trying to explain why it's a stupid idea... If you don't declare everything correctly, you may get away with some late fees or some other small fine.
If you lie about where you live or forge documents, it's definitely a serious crime and there's a good chance that you'll be put behind bars for a few years, on top of having to pay all the taxes, late fees and fines.
It's a terrible idea.

 

[romario]

well the OP was complaining about "60%" burden...so I guess we're talking about 0.60*130k=78k just my 2c

correct.... the actual tax % is only 46.25 but then there are other legally mandatory fees like social security and more all in all adding up to roughly 60%..

the thing is I'm already have a good income in Iceland and I'm in max brackets everywhere despite all my clever accounting and write-off skills

I was hoping I could not add this income to the already mountain of taxes I'm already paying to society... I mean I alone must be supporting 15 single moms in town. Enough is enough

 

[romario]

I was actually serious and trying to explain why it's a stupid idea... If you don't declare everything correctly, you may get away with some late fees or some other small fine.
If you lie about where you live or forge documents, it's definitely a serious crime and there's a good chance that you'll be put behind bars for a few years, on top of having to pay all the taxes, late fees and fines.
It's a terrible idea.

ohhh... I actually read this as sneaky pro-tips.... A guy can fantasize

I just want to be one of those rich corporations one day... (looks up into the sky and closes his eyes).

 

[newNomad]

@romario
We are with you...but as someone said I guess we need a right calculated risk and avoiding in going into straightforward crime area if possible

Perhaps the write-off skills could be improved to effectively write off all the revenue...For this you would need a counterparty in 0% tax jurisdiction who invoices you, with expenses pertinent and un-challeangeable for your business type, then passing you back this money in form of crypto or through some other means which do not trigger tax liability in your jurisdiction; example if in your jurisdiction money won through gambling is not taxed the same guy who invoiced you also has a casino somewhere and sets you as a winner of a slot machine and passes you back the $ from his casino's account (then how he replenishes that account and manage the structure behind is his business). Then in real life this is I guess never the same dude, but more dudes interconnected and...we start talking about ORGANIZED cr....tax optimization
No net income=no tAx, don't know for social contributions..

Corporations are intelligent, more than the governments, they talk only tax avoidance never forging or lying (with some exceptions), armed with all big fours at their hands ahah

 

[UKNewbie]

Just a quickie if I join the gold mentoring group will I find a solution to all this ..aka how to avoid tax as a UK resident on my online business (actually in USA but need to remit money to UK for purchasing although can pay in cash for most stock). If so I will join to fin this solution. Please let me know!

 

[newNomad]

Gold group seems focused on darks, it actually says something like 'not for those looking for tax advice'
So I guess we need have a silver group for tax/CRS matters

 

[romario]

@UKNewbie
@newNomad

I would be very interested in learning more about how to improve the write-off game, and perhaps how to invoice myself or make partners/be a part of a network that practices those type of activities... that should be a thread!

 

[qqq]

If I have a UAE company and an EMI like satchel pay, what happens in term of CRS? I'm not resident in my home country, so satchel pay knows that. Who can I be reported to besides my country of residence? Could they also report to my country of which I am a citizen but not a resident?

 

[JimBeam]

If I have a UAE company and an EMI like satchel pay, what happens in term of CRS? I'm not resident in my home country, so satchel pay knows that. Who can I be reported to besides my country of residence? Could they also report to my country of which I am a citizen but not a resident?

You just give them your Emirates ID, Emirates phone number and address and they can report you there

 

[qqq]

You just give them your Emirates ID, Emirates phone number and address and they can report you there

I'm pretty sure they asked for the passport also

 

[EliasIT]

You can firm anonymous companies all day. That part is still quite easy. And governments know that so they started going after banks instead and get them to release information. Read up on CRS (Common Reporting Standard) and AEOI (Automatic Exchange of Information).

yeah that is very true, for evading taxes the game is over. But for anonymizing a company there are still plenty of options as you may know of!