Bahamas

axeman · Apr 30, 2003

Yeah I agree. But there is little doubt that the IRS will frown on this.
I just wonder if they look at these "legal" setups and
scrounge around for some technicality to nail you with.
You mess up one little thing in the smallest of ways, and
BAM your in court with the I.R.S.

peace

axeman

Quote from Pabst:

Not applicable.

abishiai · Apr 30, 2003

Quote from the above-mentioned link:

âThose attempting to illegally evade U.S. income tax through the use of âso-calledâ tax haven countries will find they are not beyond the arm of the IRS. Promoters and clients of international evasion schemes can continue to expect scrutiny and enforcement by the IRS and the Department of Justice.â (emphasis supplied)

There is a clear distinction between tax 'evasion' and tax 'minimization.' Someone who truly lives and works in another country, albeit trading, is not evading taxes. Especially if you are simply claiming an exemption for foreign earned income.

Totally different from someone trying to hide business activity in a foreign trust or corporation.

Cheer,

kp

metooxx · Apr 30, 2003

Quote from axeman:

http://www.quatloos.com/tax_shelter_promoters_indited.htm

Hmmmmmmmmm

peace

axeman

What has that got to do with what we are talking about ???

metooxx · Apr 30, 2003

Quote from axeman:

Yeah I agree. But there is little doubt that the IRS will frown on this.
I just wonder if they look at these "legal" setups and
scrounge around for some technicality to nail you with.
You mess up one little thing in the smallest of ways, and
BAM your in court with the I.R.S.

peace

axeman

As in any business; including the little grocery store on the corner.

That is their job ...

metooxx · Apr 30, 2003

Quote from abishiai:

Quote from the above-mentioned link:

âThose attempting to illegally evade U.S. income tax through the use of âso-calledâ tax haven countries will find they are not beyond the arm of the IRS. Promoters and clients of international evasion schemes can continue to expect scrutiny and enforcement by the IRS and the Department of Justice.â (emphasis supplied)

There is a clear distinction between tax 'evasion' and tax 'minimization.' Someone who truly lives and works in another country, albeit trading, is not evading taxes. Especially if you are simply claiming an exemption for foreign earned income.

Totally different from someone trying to hide business activity in a foreign trust or corporation.

Cheer,

kp

Exactly ...

Pabst · Apr 30, 2003

Bottom line. If you earn and live outside the States you're exempt. If you earn outside but live within you're in a grey area depending on how your earnings are structured. The people who are in clear violation of tax law are those who earn outside and attempt to repatriate unreported income here in the U.S. The most common "new" method is using credit cards issued by foreign banks. Payments for goods and services here in America are income. Using an offshore account to payoff those balances is the electronic version of bringing a suitcase of hundred dollar bills into the country on a speed boat.

Madison · May 1, 2003

Quote from abishiai:

There is a clear distinction between tax 'evasion' and tax 'minimization.'

"Anyone may so arrange his affairs that his taxes shall be as low as possible: he is not bound to choose that pattern which will best pay the Treasury; there is not even a patriotic duty to increase one's taxes."

- Federal Judge Learned Hand, Helvering v. Gregory

bcavender · May 1, 2003

Pabst,

You say live outside and "earn outside"...does that mean, if you live outside but receive dividends/capgains from a US based company, the cash flow is 'not' exempt from taxes where divs from a european company would be?

Tnx!
Bruce

metooxx · May 1, 2003

Quote from bcavender:

Pabst,

You say live outside and "earn outside"...does that mean, if you live outside but receive dividends/capgains from a US based company, the cash flow is 'not' exempt from taxes where divs from a european company would be?

Tnx!
Bruce

Subject to withhholding; but you probably can get a refund...

jem · May 1, 2003

mettoxx- I have been looking at your name for a long time and could not figure out what it means. But now I may have it. Since I need to lose a few pounds would I be able to say using your nomenclature that my name is metooxxxiii