[asterisk-biz] OT: Paying people in faraway (Western) places.

[Trixter aka Bret McDanel]

On Wed, 2009-01-07 at 16:39 -0800, Nitzan Kon wrote:
> --- On Wed, 1/7/09, Trixter aka Bret McDanel <trixter at 0xdecafbad.com> wrote:
> 
> > If you have a large enough base, you can legally
> > (generally) avoid taxes (consult a tax advisor!) by forming 
> > a corporation somewhere and running all non-US stuff through 
> > there (sales, service, etc) which halts the US
> > from taxing globally as they love to do with companies that
> > are US based.
> 
> Be VERY careful going this route:
> 
> 1. While YOU think the US should not be taxing such a company,
> The IRS may disagree.
> 
yeah they did with gucci because it was a shell company just to evade
taxes, no real business was done.  With coke, microsoft, tyco, dhl, ups,
fedex, pfizer, and oh so many (probably every fortune 100 and most if
not all fortune 500 companies) they do not, although what they did do is
change the rules.  If you are a US company and move off shore but
operate the same as you did before, you are taxed for life.

Hey the US even made rules that if you no longer are a US citizenship
(get it somewhere else and renounce US) you can still pay income taxes
to the US for life, the determination is made if you earn more than X
($100k/year??) or have Y assets at the time ($500k??) *OR* they think
you renounced for tax purposes.




> 2. If you own directly or indirectly more than 50% of the
> company it is considered a CFC (Controlled Foreign Corporation)
> which will make it be treated as a regular US company for tax
> purposes - actually worse because it will guarantee more
> scrutiny and reporting requirements.
> 

its easier if you move over seas :)  You still have to watch some things
though, there are a few caveats, such as personal income exceeding their
floor before you have to pay US income tax because you are a US citizen
who just happens to not live in the US.  There are also time
restrictions that you can spend in the US, they used to have 2 programs,
where one you could be in the US 2 months but not longer than a couple
weeks at a time, now I think they dropped that and the only one is 11
months or more a year you cant be in the US or something silly.


-- 
Trixter http://www.0xdecafbad.com     Bret McDanel
pgp key: http://pgp.mit.edu:11371/pks/lookup?op=get&search=0x8AE5C721

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