Taxes

PitchBlack · May 31, 2005

Quote from mhashe:

well the accountant can't really help you when you are forced to give 50% + of your profits to the govt.

Has anyone thought about getting on a plane to Hong Kong, opening a bank account and Hong Kong based corp. funded with the equity to be traded then open a Hong Kong based IB account? That's if Hong Kong is still tax free. Low taxes is a serious matter for traders if you want to survive in increasingly competitive markets. You think markets suck now? wait till the Chinese and Indians get online. There is just so much pie to go around.

If my information is correct you pay 17.5% as a company in HK.
There seems to be no tax on capital gains.
If you move to Monaco you pay 0% as an individual. And live in HK is as expensive (if not more expensive) than in Monaco i suppose.
For US citizens there is probably no way out. They have the privilige to be taxed on their worldwide income.

psytrade · May 31, 2005

Virgin Islands sounds the best for myself. Can I open a new account at IB and trade it via a corporation in the virgin islands without trouble?

Must I prove citizenship or status of living in the virgin islands while I open an IB account? I know that opening the IB account was alot of printouts and took about an hour online to fill it in and print it out.

Im a Canadian citizen, and Im not sure how it would work. I read a book called offshore advantage, but I get the impression that with money laundering and such, that tax free zones wont last much longer.

OddTrader · May 31, 2005

Quote from psytrade:

I read a book called offshore advantage, ...

Q
Offshore Money Book, The : How to Move Assets Offshore for Privacy, Protection, and Tax Advantage
by Arnold Cornez (Paperback - April 1, 2000)
UQ

ozzy · May 31, 2005

Hey psytrade,

I'm from Canada as well, let me know if you find anything good on this topic. It would be appreciated.

Thanks

Quote from psytrade:

Virgin Islands sounds the best for myself. Can I open a new account at IB and trade it via a corporation in the virgin islands without trouble?

Must I prove citizenship or status of living in the virgin islands while I open an IB account? I know that opening the IB account was alot of printouts and took about an hour online to fill it in and print it out.

Im a Canadian citizen, and Im not sure how it would work. I read a book called offshore advantage, but I get the impression that with money laundering and such, that tax free zones wont last much longer.

mhashe · May 31, 2005

Quote from spike500:

If my information is correct you pay 17.5% as a company in HK.
There seems to be no tax on capital gains.
If you move to Monaco you pay 0% as an individual. And live in HK is as expensive (if not more expensive) than in Monaco i suppose.
For US citizens there is probably no way out. They have the privilige to be taxed on their worldwide income.

Spike, the point with trading online is you don't have to live physically in Hong Kong. All you do is wire money to your Hong Kong bank account and use your ATM card to withdraw money where ever you happen to live permanently. You get a cheap Hong Kong lawyer, and use his firm as your principal mailing address for any IB paper work that needs to be mailed. You get a Hong Kong accountant and use his firms address for taxes. For someone making over $100K profit, this setup seems worth the effort. If you really have to have a permanent address, you could always place an advert. and rent a spare room in someones home and have that person forward you all the mail for a little extra. You could still be living in Canada, but you're operating a Hong Kong business. Heck, if you have to, go get a third world passport and use that to open all your accounts. That puts you completely out of Canadian tax jurisdiction. You could replace Hong Kong with any other tax free jurisdiction.

Slim Harpo · May 31, 2005

Quote from jgadefelth:

What can i do in a legal way i whant to reduse or skip paing taes at all.

Look to reduce your taxes legally fine but I would not suggest trying to skip on paying any taxes at all...and the reason I say this is in Horse Racing (the gambling part of it) the Feds are cracking down hard on people who attempt to totally EVADE paying taxes....they are even going after the 10 percenters...(10% are people who just hang around waiting for people to hit something big that requires tax forms and they will cash the ticket for you for 10%) because most 10 percenters are using phony ID...

It is my belief and the others who I associate and gamble with and hit big to pay the IRS a share and that has been our experience in keeping them happy and a way to avoid problems....throw them some and be done with it....but trying to avoid paying taxes at all (skip them as you put it) is nothing more than asking for serious trouble down the road IMO

mahram · Jun 1, 2005

50% plus, where do you live. Corporate tax here is no more then 35% in canada, depending on which province. The lowest I belieave is alberta which is arond 29%

Quote from mhashe:

well the accountant can't really help you when you are forced to give 50% + of your profits to the govt.

Has anyone thought about getting on a plane to Hong Kong, opening a bank account and Hong Kong based corp. funded with the equity to be traded then open a Hong Kong based IB account? That's if Hong Kong is still tax free. Low taxes is a serious matter for traders if you want to survive in increasingly competitive markets. You think markets suck now? wait till the Chinese and Indians get online. There is just so much pie to go around.

LaSalle · Jun 1, 2005

Quote from mhashe:

All you do is wire money to your Hong Kong bank account and use your ATM card to withdraw money where ever you happen to live permanently.

Since 911 the Feds, at least in the U.S., have cracked down on the off-shore ATM tax evasion scheme.

The computers are set to red flag consistent withdrawls from US-based ATMs originating from notorious off shore tax havens.

Here's the where the Feds are devious little MF'ers. They'll wait until one of two situations transpire before taking you down: you've made a small fortune; you've lost it all and are broke and homeless.

jgadefelth · Jun 1, 2005

I do not know, it is quit a dilema i think you can set up an offshore bankaccount in B V I or in bahamas or elswhere and dont meantions it to the goverment but the problem come when you will spend it. For me who lives in sweden i can perhaps get memeberships in taxfree contrys and dont live in sweden more an half the yaer. I heard somewhere that i can start i buissnis in delawere and it should reduce some taxes or somthing.

Regards

PitchBlack · Jun 1, 2005

Quote from psytrade:

Virgin Islands sounds the best for myself. Can I open a new account at IB and trade it via a corporation in the virgin islands without trouble?

Must I prove citizenship or status of living in the virgin islands while I open an IB account? I know that opening the IB account was alot of printouts and took about an hour online to fill it in and print it out.

Im a Canadian citizen, and Im not sure how it would work. I read a book called offshore advantage, but I get the impression that with money laundering and such, that tax free zones wont last much longer.

No, you cannot open an account at IB. You have to be consequent, not you but your BVI company will have to open an account. Remember to cheat professionally if you want to cheat. The directors of your BVI company have to sign to open an account. Officially IB will not know you, they will know the BVI company and its directors. Be careful, who can withdraw money form the companyâs bank account? Think about all the details. You need your directors in all the communications with IB and only they can withdraw money. IB will refuse to listen to you.
Will the construction be accepted in Canada? I donât think so. Unless you can proof that the BVI company is trading and not you. This means that if you place orders your name will be know as the trader at your broker. So the fiscal administration will have no difficulties to prove your construction is fake. They can also check your internet connection, by which you place orders and e-mail with your broker. You will see that it isnât that easy. Only for BIG money itâs worth to make this construction.

Donât believe all you read about offshores.