Is it possible to create an offshore company in someone else's name?

[Taskmaster001]

Hi guys.

I'm currently living in Austria and I'm getting blasted by high taxes. I'm originally from Romania where taxes in my bracket are at least half of what I pay now.
I can't move back to Romania yet, but I was thinking if it's possible to set up a company in Romania on a friend or someone and make my money through said company and pay taxes in Romania, all the while I live here in Austria.

Thanks.

 

[Marzio]

You could form a Romanian company by being the UBO, hire somebody as a director and rent an office for the company so that Austria will not deem your company to be Austrian tax resident.

Be aware that if the Romanian company will generate more than 25% of the total revenue in passive income it will be considered a CFC by Austria and you'll pay all the revenue generated by it at Austrian PIT rates.

 

[Martin Everson]

Depends on nature of work. If your living and working physically at i.e a car plant fixing machinery in Austria and want to invoice for that work you done with your hands in the plant from a Romanian company then you will be on first name terms with the tax man and later maybe a public prosecutor.

 

[Taskmaster001]

I don't work physically. I work in IT and I'm paid from worldwide sources. All of my income is generated online. It's just that my main residence is in Austria and I pay taxes here. My theory was that I could open a company on one of my friends, in his name, all of my income is being sent to said company, and he pays taxes on said income as if he earned it. Sounds more bad when you put it in writing haha.

 

[JohnLocke]

You won't get away with that; as soon as the money reaches you, you'll have to pay taxes on it. Otherwise, I think there would be hundreds of thousands of Australians with a family member in Romania sending them money tax-free every week.

 

[Taskmaster001]

You won't get away with that; as soon as the money reaches you, you'll have to pay taxes on it. Otherwise, I think there would be hundreds of thousands of Australians with a family member in Romania sending them money tax-free every week.

The thing is, the money doesn't reach me. It goes directly to my friend, I just do the work.

 

[JohnLocke]

The thing is, the money doesn't reach me. It goes directly to my friend, I just do the work.

So you will never receive the money as long as you live in Australia ?

 

[Taskmaster001]

So you will never receive the money as long as you live in Australia ?

I do receive the money here in Austria. But once the work is done I can have the money sent directly to my friend. I can have my friend's credentials as the receiver of funds. The money itself does not have my name on it. I hope that makes sense.

 

[Marzio]

I work in IT and I'm paid from worldwide sources.

If your income justifies it then this three structure arrangement could let you live tax free in Austria LEGALLY and only pay a whopping 12.5% total tax

 

[Taskmaster001]

If your income justifies it then this three structure arrangement could let you live tax free in Austria LEGALLY and only pay a whopping 12.5% total tax

The article is 5 years old. Does it still apply today?

 

[12345]

No legal option to reduce your tax liabilities unless you move out of Austria

 

[Taskmaster001]

No legal option to reduce your tax liabilities unless you move out of Austria

Yeah, I guess so. Everyone I asked basically said that if my physical a*s resides in Austria, they'll take my moolah.

 

[apres777]

If you not only want to go down by your own, sure with this you can "drag" your friend down with you.

Maybe in general if something seems a little bit too easy to work, it probably is too easy.

This is especially true when it comes to paying taxes. You can get away with a lot of stuff, but taxes mostly not.

 

[Taskmaster001]

I have to be more active on this forum and learn more because when I expand on my ideas regarding tax and companies, I start to sound like a criminal hahaha

 

[Marzio]

The article is 5 years old. Does it still apply today?

 

[Taskmaster001]

This might be offtopic, but I see all these 'No tax' offshore company locations like Seychelles, Hong Kong, Marshall Islands, etc. If there's no tax to pay, why isn't everybody opening companies in these places?

 

[jafo]

Hi guys.

I'm currently living in Austria and I'm getting blasted by high taxes. I'm originally from Romania where taxes in my bracket are at least half of what I pay now.
I can't move back to Romania yet, but I was thinking if it's possible to set up a company in Romania on a friend or someone and make my money through said company and pay taxes in Romania, all the while I live here in Austria.

Thanks.

1. Is there a reason why you can't emigrate from Austria and immigrate to Romania?
2. If you immigrate to Romania, will you continue earning the same or more money as in Austria?
3. Is the money you are earning dependent on your physical presence in Austria?
4. Is Austria providing the infrastructure or logistics to allow you to earn this money?

 

[Marzio]

If there's no tax to pay, why isn't everybody opening companies in these places?

Because what matters is the location where the company is managed.

A Seychelles company managed from Austria guess where is tax resident.

 

[12345]

This might be offtopic, but I see all these 'No tax' offshore company locations like Seychelles, Hong Kong, Marshall Islands, etc. If there's no tax to pay, why isn't everybody opening companies in these places?

some people just do tax evasion or crimes using these companies. You pay taxes based on where you live
It is also used for profit shifting by companies however to do it you usually need to hire good lawyers, create substance in these tax havens by renting office and hiring staff so it's expensive and not accessible for everybody

Base erosion and profit shifting - Wikipedia

en.wikipedia.org

 

[Forester]

I do receive the money here in Austria. But once the work is done I can have the money sent directly to my friend. I can have my friend's credentials as the receiver of funds. The money itself does not have my name on it. I hope that makes sense.

Just be advised that what you described above not only looks as a criminal activity but really is a criminal activity, called tax evasion. Think twice before you engage in something like this. It's 2024, not 2004 when such manoeuvres were almost common.