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CaptK

Nominee Company Bank Account Real Estate Passport
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Feb 11, 2019
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#1
About 18 months a go I had quoted a client who required a UAE structure but didn't want to leave Sweden. I quoted him everything he required not only for Tax efficiency but also to prove SUBSTANCE.
I never heard from him after that until last week.
He rang me to say that I was a liar and a crook and that he is going to ruin me. After letting him release his steam I then said to him that he never did any business with me so how could I have cheated him in any way.
His response was that the structure I prescribed to him didn't work and now the authorities want Euro 376K!!!
So the story goes he contacted someone else who told him what he wanted to hear and he registered him a company at about 50% less than what I quoted him.
The difference in price was substance....... He now has "substantially" (pun intended) big bill to pay because he had no substance.
He now has offered me quite a substantial percentage of the bill to sort it out. I politely declined and he now keeps calling asking for help.

Has anyone else fallen into the substance trap?
 
#3
He was happy to pay the running cost but he was cheap.
Company set up and all the things he needed to confirm substance including office 12K (normally about 6).
2 staff members 500 each.
At least one of them needed to be in the UAE. Then it all the little things like emails telephone numbers, website and the actual process that you handle business.

All this was in his quote but the guy he bought from didn't care about his situation. The only thing he did listen to was not to get a RAK ICC and got an FZE.
 
#5
JustAnotherNomad said:
500 sounds cheap. Can’t really see the authorities in a country like Sweden falling for that...
Click to expand...
I must say, I doubt this too. Sweden is like most other Scandinavian countries and they don't fall for cheap setups, believe me, at least not if the purpose is tax evasion
 
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#6
CaptK said:
About 18 months a go I had quoted a client who required a UAE structure but didn't want to leave Sweden. I quoted him everything he required not only for Tax efficiency but also to prove SUBSTANCE.
I never heard from him after that until last week.
He rang me to say that I was a liar and a crook and that he is going to ruin me. After letting him release his steam I then said to him that he never did any business with me so how could I have cheated him in any way.
His response was that the structure I prescribed to him didn't work and now the authorities want Euro 376K!!!
So the story goes he contacted someone else who told him what he wanted to hear and he registered him a company at about 50% less than what I quoted him.
The difference in price was substance....... He now has "substantially" (pun intended) big bill to pay because he had no substance.
He now has offered me quite a substantial percentage of the bill to sort it out. I politely declined and he now keeps calling asking for help.

Has anyone else fallen into the substance trap?
Click to expand...
Admin said:
I must say, I doubt this too. Sweden is like most other Scandinavian countries and they don't fall for cheap setups, believe me, at least not if the purpose is tax evasion
Click to expand...

Going the cheap route Is always expensive on the longrun,apparently he now has more of an issue than a solution...take him in, do your due diligence and invoice him for coming back after a year, prior to sorting him out...high time service providers on the OCT get more appreciation @ respectcig-:,
 
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#7
No, because if I get involved now I'm stuck with the problem. I dont know what he has done nor who his customers are.
It's a time consuming problem I dont need and he will be calling me every day like he has been.
 
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#8
JustAnotherNomad said:
500 sounds cheap. Can’t really see the authorities in a country like Sweden falling for that...
Click to expand...

Cheap is relative to the wages in country. His business is fruit and vegetables from Africa. Predominantly Kenya, Uganda and Tanzania. His managers would have been in Kenya and that is a fair wage for administration.
 
#14
JustAnotherNomad said:
I thought we were talking about the UAE? How would it give him substance in the UAE if he has employees in Africa?
Click to expand...
They were getting employment Visa's so they can travel back and forth to the UAE and sit in the office from time to time and hold meetings. The services office we use actually have an office there for you with a telephone number and receptionist.


They have to go between Africa and UAE sourcing and selling, as he was supplying a couple distributors in the UAE also. Travel was expensed by him plus perdiums.
 
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