Friend money transfer via company

[kristiencrimson]

Hello,
I am a sole entrepreneur and have undeclared funds in crypto from long ago.
The country I live in allow to get salaries and payment using crypto.
If I will invoice my friend's company (who lives in another country and have a company there) for my services, but send the payment to myself from my own crypto wallet as if his company paid me and declare tax on it. will anyone ever question or try to investigate if the funds were actually sent from company's crypto wallets or bank account?

If banks / tax organization will need any kind of work agreement with his company I will be able to provide it of course, but I'm curious to know if it is likely that if I just provide service to a 3rd party company, is there any chance they will ask me to ask that company to provide their financial or something of that sort?

or is this a good way to bring my crypto, declare and live happily ever after?

Thanks!

 

[rss]

have undeclared funds in crypto from long ago

How much are we talking about

will anyone ever question or try to investigate if the funds were actually sent from company's crypto wallets or bank account?

Depends on a multitude of factors.

is this a good way to bring my crypto, declare and live happily ever after?

Probably not.

 

[Martin Everson]

If I will invoice my friend's company (who lives in another country and have a company there) for my services, but send the payment to myself from my own crypto wallet as if his company paid me and declare tax on it. will anyone ever question or try to investigate if the funds were actually sent from company's crypto wallets or bank account?

Will you be charging VAT?

If banks / tax organization will need any kind of work agreement with his company I will be able to provide it of course, but I'm curious to know if it is likely that if I just provide service to a 3rd party company, is there any chance they will ask me to ask that company to provide their financial or something of that sort?

Highly unlikely unless company is based somewhere that raises alarms or amounts are huge etc.

or is this a good way to bring my crypto, declare and live happily ever after?

Money laundering is never a good idea.

 

[kristiencrimson]

Will you be charging VAT?

No,

Highly unlikely unless company is based somewhere that raises alarms or amounts are huge etc.

I got 2 options, Cyprus and Dubai

Money laundering is never a good idea.

Money laundering if I am paying the tax?


Sum about 25-30k USD per month - that was the idea at least.

 

[kristiencrimson]

How much are we talking about

wrote in another reply in this thread

Depends on a multitude of factors.

which ones? what should be considered?

Probably not.

why? what issues can raise?

 

[rss]

Sum about 25-30k USD per month

Is that it or do you plan on having multiple 30k months?

If you average 30k months with your regular business, you are not going to have any trouble sneaking a 30k cashout, on the other hand, if you make 50k per year and start pulling out 30k for 12 months straight in crypto, then you are pretty much asking for trouble.

 

[Martin Everson]

Money laundering if I am paying the tax?

Yes.

A money launderer would be pretty stupid to launder money through a legit business and not pay any taxes.

I am a sole entrepreneur and have undeclared funds in crypto from long ago.

"Money laundering is the process of illegally concealing the origin of money obtained from illicit activities (often known as dirty money) such as drug trafficking, underground sex work, terrorism, corruption, embezzlement, and gambling, and converting the funds into a seemingly legitimate source, usually through a front organization."

If your funds are clean you would declare them. If you have no source of funds you can still declare them and explain to authorities how this is possible....lol. The fact you are going the money laundering root to conceal the origin of the funds say it all. Actions speak louder than words sadly.

 

[kristiencrimson]

Yes.

A money launderer would be pretty stupid to launder money through a legit business and not pay any taxes.



"Money laundering is the process of illegally concealing the origin of money obtained from illicit activities (often known as dirty money) such as drug trafficking, underground sex work, terrorism, corruption, embezzlement, and gambling, and converting the funds into a seemingly legitimate source, usually through a front organization."

If your funds are clean you would declare them. If you have no source of funds you can still declare them and explain to authorities how this is possible....lol. The fact you are going the money laundering root to conceal the origin of the funds say it all. Actions speak louder than words sadly.

this escalated quickly.. its not illicit. just dont have the source of funds. only explanation which i assume wont be accepted without supporting documents

 

[Forester]

ts not illicit. just dont have the source of funds.

The problem is that AML regulations consider not being able to show the source of funds as being a money launderer => illicit activity.

only explanation which i assume wont be accepted without supporting documents

Well, not inevitably. There are cases when some explanation is acceptable for taxmen and/or LEOs even with almost no documents. Yet without knowing details of your case it is not possible to give any founded judgement. Feel free to join Mentor Group and share the details /your possible explanation there, if you like.

 

[benq]

Money laundering if I am paying the tax?


Sum about 25-30k USD per month - that was the idea at least.

In Finland you won't have problems with it and the amount if you pay tax from it.

 

[Martin Everson]

OP will have a better outcome by hiring a tax advisor who may end up going to authorities and explaining he held undeclared crypto than waiting for authorities to come to him. What he doesn't want to do is turn the situation into a money laundering one. Most people in such situations just vanish abroad out of harms way but each to their own.

 

[kristiencrimson]

OP will have a better outcome by hiring a tax advisor who may end up going to authorities and explaining he held undeclared crypto than waiting for authorities to come to him. What he doesn't want to do is turn the situation into a money laundering one. Most people in such situations just vanish abroad out of harms way but each to their own.

but even abroad, banks will ask questions from where is the money.
i'm more worried about not being able to work with banks rather than tax organization

 

[Forester]

but even abroad, banks will ask questions from where is the money.

Sure.

i'm more worried about not being able to work with banks rather than tax organization

Yet if you are able to prove to a bank that you have all in order with taxmen in your tax residence country and to show the tax returns adequate to the amount of cash you want to place at the banker's table, you are usually fine (of course, you are onboarded only if your business case is sufficiently attractive to a bank but it is another story).

In general, the message that is conveyed to you here is: It is not a good idea “to send the payment to myself from my own crypto wallet as if his company paid me and declare tax on it” as it can lead you to troubles which are well possible to avoid; there are other ways how to solve this situation.

 

[JackAlabama]

but even abroad, banks will ask questions from where is the money.
i'm more worried about not being able to work with banks rather than tax organization

in 2024, banks usage/needs are highly limited unlike the 1990s. Maybe reconsider your whole approach and if you badly need banks in the first place.

 

[kristiencrimson]

ok, thanks