Using Trading to Transfer Capital.

yeah well you need to keep thinking or run for political office. What you are talking about is taking money from one pocket and putting it in the other. It works just fine for the broker who gets his palms greased every time money changes hands. And all these schemes have a non descript broker who collects the money every time it changes hands.
 
Member dw31583 in the thread http://www.elitetrader.com/et/index.php?threads/instaforex-does-not-process-withdrawals.295011/ proposes to use the method to recover account money fraudulently detained by his broker.

He also relates the following
dw31583 said:
...
Btw I made my research about this and large companies in London, UK used (maybe still using) this method to pay bonuses to their managers because the top capital gains tax rate is just 28% while the highest income tax 45% plus other levies so they instructed their highest paid employees to open a position with a certain currency pair and they opened on the opposite side. This way they paid millions of pounds and both parties avoided a lots of taxes.
After a while HMRC (UK tax authorities) said it's tax avoidance and they have to pay up the difference however they did this on a large scale.
Other companies in the finance sector still using this method because it's literally impossible to detect the transactions with banks, hedge funds and insurance companies.
More...

Very interesting :D
Thank You
 
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