Comments on: Top Ways To Avoid Income Tax – Part 3 http://www.johnchow.com/top-ways-to-avoid-income-tax-part-3/ The Miscellaneous Ramblings of a Dot Com Mogul Mon, 15 Mar 2010 05:47:26 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Tax Haven http://www.johnchow.com/top-ways-to-avoid-income-tax-part-3/#comment-96237 Tax Haven Mon, 20 Aug 2007 07:28:16 +0000 http://www.johnchow.com/top-ways-to-avoid-income-tax-part-3/#comment-96237 All countries have very specific tax laws. What John wrote is only valid for Canadian residents. It is also true that setting up an offshore company can be quite expensive depending on the jurisdiction. Check the real cost before starting. Americans must file a tax return no matter where they live. But the last time I looked non-resident americans have an $80k exemption double that for a couple. Though you may have to pay taxes in yur country of residence. Not everyone wants to be a tax exile. I am sure that the canadian tax department knows Barbados very well and would take action if it felt like it to close the loophole. All countries have very specific tax laws. What John wrote is only valid for Canadian residents. It is also true that setting up an offshore company can be quite expensive depending on the jurisdiction. Check the real cost before starting.

Americans must file a tax return no matter where they live. But the last time I looked non-resident americans have an $80k exemption double that for a couple. Though you may have to pay taxes in yur country of residence. Not everyone wants to be a tax exile.

I am sure that the canadian tax department knows Barbados very well and would take action if it felt like it to close the loophole.

]]> By: moom http://www.johnchow.com/top-ways-to-avoid-income-tax-part-3/#comment-94635 moom Sun, 12 Aug 2007 14:21:23 +0000 http://www.johnchow.com/top-ways-to-avoid-income-tax-part-3/#comment-94635 Mic - yes that's called transfer pricing. Another strategy is having more than one foreign subsidiary and lending money from the low tax jurisdiction subsidiary to the high tax one. The subsidiary in the high tax one gets to deduct the interest payments at the high tax rate and the low tax subsidiary earns them at the low tax rate. There are lots of tricks like these used by mutlinational corporations. To some extent countries try to clamp down on the tricks but new ones pop up. Mic – yes that’s called transfer pricing. Another strategy is having more than one foreign subsidiary and lending money from the low tax jurisdiction subsidiary to the high tax one. The subsidiary in the high tax one gets to deduct the interest payments at the high tax rate and the low tax subsidiary earns them at the low tax rate. There are lots of tricks like these used by mutlinational corporations. To some extent countries try to clamp down on the tricks but new ones pop up.

]]> By: mic http://www.johnchow.com/top-ways-to-avoid-income-tax-part-3/#comment-94608 mic Sun, 12 Aug 2007 06:15:32 +0000 http://www.johnchow.com/top-ways-to-avoid-income-tax-part-3/#comment-94608 There's a strategy done by a business tycoon here in the Philippines (i wont say the name), create two companies, one is for production the other one is for distribution. The production company then sells the produsts to the distributor company for the cost of just producing the products, meaning they dont earn anything. If it's a break even they dont have to pay taxes cause they don't earn anything. There’s a strategy done by a business tycoon here in the Philippines (i wont say the name), create two companies, one is for production the other one is for distribution. The production company then sells the produsts to the distributor company for the cost of just producing the products, meaning they dont earn anything. If it’s a break even they dont have to pay taxes cause they don’t earn anything.

]]> By: Michael Fultz http://www.johnchow.com/top-ways-to-avoid-income-tax-part-3/#comment-93247 Michael Fultz Tue, 07 Aug 2007 06:08:16 +0000 http://www.johnchow.com/top-ways-to-avoid-income-tax-part-3/#comment-93247 This is an interesting post.. Of course, one has to start making the "big bucks" before one is concerned with these things, but it is good to keep this in mind.. This is an interesting post.. Of course, one has to start making the “big bucks” before one is concerned with these things, but it is good to keep this in mind..

]]> By: Webmaster Money http://www.johnchow.com/top-ways-to-avoid-income-tax-part-3/#comment-92840 Webmaster Money Sun, 05 Aug 2007 01:41:48 +0000 http://www.johnchow.com/top-ways-to-avoid-income-tax-part-3/#comment-92840 Is this just for big corporations or also normal bloggers or even John needs to avoid paying TAX. I was wondering if I have to pay TAX if I dont have any business and earning money just on Internet byu donations and affiliate marketing. Is this just for big corporations or also normal bloggers or even John needs to avoid paying TAX. I was wondering if I have to pay TAX if I dont have any business and earning money just on Internet byu donations and affiliate marketing.

]]> By: moom http://www.johnchow.com/top-ways-to-avoid-income-tax-part-3/#comment-92353 moom Thu, 02 Aug 2007 23:49:35 +0000 http://www.johnchow.com/top-ways-to-avoid-income-tax-part-3/#comment-92353 I don't think you can just bring $10,000 in cash back home tax free. Once you pay yourself a dividend from your offshore corporation most countries that tax on a residency basis will tax you on that dividend. Doing what you suggest would be tax evasion. But as long as the profit remains in the offshore corporation you may be able to avoid tax depending on the laws in your home country. US multinational corps do this all the time. I don’t think you can just bring $10,000 in cash back home tax free. Once you pay yourself a dividend from your offshore corporation most countries that tax on a residency basis will tax you on that dividend. Doing what you suggest would be tax evasion. But as long as the profit remains in the offshore corporation you may be able to avoid tax depending on the laws in your home country. US multinational corps do this all the time.

]]> By: Max http://www.johnchow.com/top-ways-to-avoid-income-tax-part-3/#comment-92295 Max Thu, 02 Aug 2007 18:16:05 +0000 http://www.johnchow.com/top-ways-to-avoid-income-tax-part-3/#comment-92295 Some of the stuff is a bit scary :neutral: . I hope you know what you are doing dude !!! Some of the stuff is a bit scary :neutral: . I hope you know what you are doing dude !!!

]]> By: Money Musings » Blog Archive » Oh The Sites You Will See… http://www.johnchow.com/top-ways-to-avoid-income-tax-part-3/#comment-92233 Money Musings » Blog Archive » Oh The Sites You Will See… Thu, 02 Aug 2007 15:05:16 +0000 http://www.johnchow.com/top-ways-to-avoid-income-tax-part-3/#comment-92233 [...] John Chow gives a few tips on income tax: http://www.johnchow.com/top-ways-to-avoid-income-tax-part-3/ [...] [...] John Chow gives a few tips on income tax: http://www.johnchow.com/top-ways-to-avoid-income-tax-part-3/ [...]

]]> By: Amit http://www.johnchow.com/top-ways-to-avoid-income-tax-part-3/#comment-92216 Amit Thu, 02 Aug 2007 13:46:15 +0000 http://www.johnchow.com/top-ways-to-avoid-income-tax-part-3/#comment-92216 Hi John, Excellent post! I'm working on setting up a offshore account myself, you just need to be careful in the US, you don't want the IRS finding out. Hi John,

Excellent post! I’m working on setting up a offshore account myself, you just need to be careful in the US, you don’t want the IRS finding out.

]]> By: awflasher.com http://www.johnchow.com/top-ways-to-avoid-income-tax-part-3/#comment-92168 awflasher.com Thu, 02 Aug 2007 09:13:23 +0000 http://www.johnchow.com/top-ways-to-avoid-income-tax-part-3/#comment-92168 great topics :) you should know why i am saying so ha great topics :)
you should know why i am saying so ha

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