Anyone have an offshore entity? | Forex Factory

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Anyone have an offshore entity?

  • #1
  • First Post: Oct 7, 2006 9:30pm Oct 7, 2006 9:30pm
I'm doing some general research into establishing an offshore entity, so i'd be keen to hear from people who have established one.

I'm currently an Australian citizen and pay my taxes. Next year i will be becoming a non-resident, and spend alot of time travelling abroad. So I am looking to shift my assets into an offshore entity to continue trading from etc. This way i wont be paying tax, but is legal for me to do so.

So my questions:
- which jurisdictions are best in terms of political stability? (eg british virgin islands, cayman, isle of man etc)
- no annual returns to be lodged?
- what banks are recommended? in which countries?
- are there any risks?
If at first you don't succeed, destroy all evidence that you tried.
  • #2
  • Oct 7, 2006 10:55pm Oct 7, 2006 10:55pm
I think if u subscribed to Vegas signal for a year, u will get VWB3 which provides all the info to ply yr trading in offshore entity.
The future depends on what we do in the present.
  • #3
  • Oct 8, 2006 12:04am Oct 8, 2006 12:04am
Quoting thuxen
I'm doing some general research into establishing an offshore entity, so i'd be keen to hear from people who have established one.

I'm currently an Australian citizen and pay my taxes. Next year i will be becoming a non-resident, and spend alot of time travelling abroad. So I am looking to shift my assets into an offshore entity to continue trading from etc. This way i wont be paying tax, but is legal for me to do so.

So my questions:
- which jurisdictions are best in terms of political stability? (eg british virgin islands, cayman, isle of man etc)
- no annual returns to be lodged?
- what banks are recommended? in which countries?
- are there any risks?

To avoid paying taxes of any nature, do the following.

Trade with brokers who accept e-gold ; diversify, do not trade with a single broker, and be very careful to verify broker credentials.

2) Get an account with uniclear and get a debit ATM card from them, you transfer funds in e-gold, top your card and withdraw from any ATM.

No darn tax guy would ever know.
  • #4
  • Oct 8, 2006 2:57am Oct 8, 2006 2:57am
Quoting TheJungleLion
To avoid paying taxes of any nature, do the following.

Trade with brokers who accept e-gold ; diversify, do not trade with a single broker, and be very careful to verify broker credentials.

2) Get an account with uniclear and get a debit ATM card from them, you transfer funds in e-gold, top your card and withdraw from any ATM.

No darn tax guy would ever know.
what brokers accept egold?
  • #5
  • Oct 8, 2006 4:00am Oct 8, 2006 4:00am
Quoting aicccia
what brokers accept egold?
One is North Finance.
  • #6
  • Oct 8, 2006 9:06am Oct 8, 2006 9:06am
Quoting thuxen
I'm doing some general research into establishing an offshore entity, so i'd be keen to hear from people who have established one.

I'm currently an Australian citizen and pay my taxes. Next year i will be becoming a non-resident, and spend alot of time travelling abroad. So I am looking to shift my assets into an offshore entity to continue trading from etc. This way i wont be paying tax, but is legal for me to do so.

So my questions:
- which jurisdictions are best in terms of political stability? (eg british virgin islands, cayman, isle of man etc)
- no annual returns to be lodged?
- what banks are recommended? in which countries?
- are there any risks?
Thuxen,
There are some other issues which you should be aware of...
you may find that you’ll still be an AU resident for tax purposes. If you visit the ATO website, there is a simple questionnaire which you can complete (anonymously) to help you determine whether you’ll be an AU resident for tax purposes. But residency for tax purposes is a very grey area, and many people have been caught out. You can actually be resident for tax purposes in two places at once. In reality, none of this really matters unless substantial amounts of money are involved. But if you are an AU resident for tax purposes, then you won’t legally be able to escape tax in <st1:country-region w:st="on"><st1lace w:st="on">Australia</st1lace></st1:country-region> (undeclared offshore income is illegal).

There are some illegal methods which people get away with for a while. Namely using an offshore company with nominee directors, and drawing cash from ATM machines with the company credit card. Believe it or not, the ATO tracked down many people using this method eventually, and in such instances it’s easy for them to prove that it was a case of tax avoidance… criminal charges are usually laid and earnings confiscated (with fines on-top).

Basically, your best bet could be to get a private ruling from the ATO verifying in advance your non-residency status while you’re abroad, so that you can legally bring back and spend the bucket loads of money you make while aboard if/when you come back to AUS, without the ATO having any legal grounds to claim anything.

I don’t have a complete knowledge of this subject, it’s possible that what I’m saying isn’t fully accurate. But hopefully what I’ve said will give you a few things to consider and discuss with the right people.
  • #7
  • Oct 8, 2006 9:06am Oct 8, 2006 9:06am
Quoting TheJungleLion
To avoid paying taxes of any nature, do the following.

Trade with brokers who accept e-gold ; diversify, do not trade with a single broker, and be very careful to verify broker credentials.

2) Get an account with uniclear and get a debit ATM card from them, you transfer funds in e-gold, top your card and withdraw from any ATM.

No darn tax guy would ever know.
I've been looking for e-gold brokers, but the ones I have found, such as "North Finance" don't seem to be very secure. Their grammer on the website is horrible and a few spelling errors.

Are there any reliable e-gold brokers?
  • #8
  • Oct 8, 2006 7:09pm Oct 8, 2006 7:09pm
Thanks for your replies all, but i think your missing my questions.

This is not about tax avoidance. I will be classified as a non-resident in Australia. I also have no problems paying tax in my country of residence.

The reason i wish to establish an offshore facility is to have a central location to keep my funds. I can then pay tax on whatever i bring into my country of residence, be it Australia, UK, Colombia... whatever

I am more interested in the safety of my funds in any given 'offshore haven' and associated bank accounts. I am not trying to hide anything.
If at first you don't succeed, destroy all evidence that you tried.
  • #9
  • Oct 8, 2006 7:34pm Oct 8, 2006 7:34pm
Quoting thuxen
Thanks for your replies all, but i think your missing my questions.

This is not about tax avoidance. I will be classified as a non-resident in Australia. I also have no problems paying tax in my country of residence.

The reason i wish to establish an offshore facility is to have a central location to keep my funds. I can then pay tax on whatever i bring into my country of residence, be it Australia, UK, Colombia... whatever

I am more interested in the safety of my funds in any given 'offshore haven' and associated bank accounts. I am not trying to hide anything.
the best is Indonesia....
the cheapest investment for onlinetrading
Simplicity your Life
  • #10
  • Oct 8, 2006 8:06pm Oct 8, 2006 8:06pm
I have had accounts in the Isle of Man and have been there. The government is extremely stable and the banking laws protect your funds. Some very large and very reputable banks have branches there.

The other areas that I would consider would be Jersey and possibly Gibraltar.

These are some of the most politically stable areas with laws which protect your funds.
  • #11
  • Edited 12:39am Oct 9, 2006 12:09am | Edited 12:39am
Thanks for your responses everyone, but my question is not related to TAX.

My question is in regards to RECOMMENDED offshore havens + safety of funds.

Of course if one is to shift the majority of their assets into an offshore entity, you want to be sure that the entity and banks are stable.

Thanks for your response moonchild. I was looking at the British Virgin Islands because for some reason they seem to have the lowest fees, not that they are anything exorbitant anyway.
If at first you don't succeed, destroy all evidence that you tried.
  • #12
  • Oct 10, 2006 1:24am Oct 10, 2006 1:24am
If you're in no way associated with the UK, you could open up an account, and put all your money there. You don't have to pay taxes on it, or on the interest earned, and the government is highly stable. I talked to a HSBC London representative yesterday.
  • #13
  • Oct 10, 2006 7:48am Oct 10, 2006 7:48am
If this is true than a IBC may not be required, ill check it out.

Thanks
If at first you don't succeed, destroy all evidence that you tried.
  • #14
  • Oct 10, 2006 10:42am Oct 10, 2006 10:42am
Quoting blueshift
If you're in no way associated with the UK, you could open up an account, and put all your money there. You don't have to pay taxes on it, or on the interest earned, and the government is highly stable. I talked to a HSBC London representative yesterday.
You will still be liable for taxes on any income accrued, be it from forex or interest generated, in your country of residence.

The whole thing about "Swiss bank accounts" was that the Swiss wouldn't give your account information to other governments. Now a days, though, your information is available the minute your money is transferred. So even though you wouldn't pay British taxes, you'd still have to pay tax in your home country. Maybe AU isn't as nosey, but the USA has their eye balls on all money transactions, so they will catch you sooner or later.
So far so good.
  • #15
  • Oct 10, 2006 10:46am Oct 10, 2006 10:46am
Here's an organization that may be able to help you. They've been very helpful to myself and others who have set up offshore situations.

http://www.wsr-corporation.com/en/index.html
  • #16
  • Oct 10, 2006 12:55pm Oct 10, 2006 12:55pm
Quoting thuxen
Thanks for your responses everyone, but my question is not related to TAX.

My question is in regards to RECOMMENDED offshore havens + safety of funds.

Of course if one is to shift the majority of their assets into an offshore entity, you want to be sure that the entity and banks are stable.

Thanks for your response moonchild. I was looking at the British Virgin Islands because for some reason they seem to have the lowest fees, not that they are anything exorbitant anyway.
Open an LLC corporation in Delaware (~~500-100USD) and request bank account there, If your broker is outside USA and you do not have any income from the US territory - you will pay tax circa 150 USD a year.

You must ask registering entity if you can invest in forex - are there any special taxes (I doubt).

Then you can choose any bank you want in DL - with branches arount the world.

There is no problem with credit cards - you can be the owner and also work here as an employee, so you can use any credit cards.

There is no need to be a US citizen to register and own a corporation there.

If you need more info - just pm me and I give you address where you can ask and register an LLC online.

I'm not affiliated with these guys.

have a great day..
Quidquid latine dictum sit altum viditur
  • #17
  • Oct 10, 2006 1:25pm Oct 10, 2006 1:25pm
A LLC will not shield you from your tax liabilities. If you are American, you will still pay income tax. I do not know how AU works for taxes, but I assume that if you make money, they will tax it. Death and taxes, the only 2 guaranteed things.

Quoting dottore
Open an LLC corporation in Delaware (~~500-100USD) and request bank account there, If your broker is outside USA and you do not have any income from the US territory - you will pay tax circa 150 USD a year.

You must ask registering entity if you can invest in forex - are there any special taxes (I doubt).

Then you can choose any bank you want in DL - with branches arount the world.

There is no problem with credit cards - you can be the owner and also work here as an employee, so you can use any credit cards.

There is no need to be a US citizen to register and own a corporation there.

If you need more info - just pm me and I give you address where you can ask and register an LLC online.

I'm not affiliated with these guys.

have a great day..
So far so good.
  • #18
  • Oct 10, 2006 5:04pm Oct 10, 2006 5:04pm
Quoting paul2
A LLC will not shield you from your tax liabilities. If you are American, you will still pay income tax. I do not know how AU works for taxes, but I assume that if you make money, they will tax it. Death and taxes, the only 2 guaranteed things.
Paul - yes an LLC will not shield you from liabilities - but an LLc has its won bookkeeping, so - you can play fx as an institution. If income is from outside US - you (as an LLC) pay ONLY state tax ~~150 usd a year. It doesnt matter if you are a US citizen or not.

The second matter is your personal tax. For example as an American you pay income tax.

But income of an LLC IS NOT your income... Got it?

You could be a trader in Whatever FX LLC in Delaware, you can have a nice "job" - company car or jet, or whatever, your company can pay you rent, etc, etc... and a small salary - taxed by IRS...

And Delaware law allows not to reveal true owners of a company.

I dont know how its today - maybe last years changed sth. But such entities exist not only in DL, also in Nevada and (probably) Virginia.

I'm not a lawyer so everyone should seek pro guidance. There is a lot of firms helping in registration of such entities in the whole world, but in my opinion for commercal activity DL state law is one of the best.

As far as I know for traders also good is Luxembourg (capital gains are not taxed), maybe also my country next year. So be it!

Quidquid latine dictum sit altum viditur
  • #19
  • Oct 10, 2006 5:38pm Oct 10, 2006 5:38pm
hi, which is your country?

Remember that many countries that do not tax FX because the country considers them tax-exempt capital gains, will still tax you if it is your primary source of income because in their eyes it is now income, not capital gains.

Quoting dottore
As far as I know for traders also good is Luxembourg (capital gains are not taxed), maybe also my country next year. So be it!

  • #20
  • Oct 10, 2006 7:25pm Oct 10, 2006 7:25pm
Talk to an accountant. You're wrong.


Quoting dottore
Paul - yes an LLC will not shield you from liabilities - but an LLc has its won bookkeeping, so - you can play fx as an institution. If income is from outside US - you (as an LLC) pay ONLY state tax ~~150 usd a year. It doesnt matter if you are a US citizen or not.

The second matter is your personal tax. For example as an American you pay income tax.

But income of an LLC IS NOT your income... Got it?

You could be a trader in Whatever FX LLC in Delaware, you can have a nice "job" - company car or jet, or whatever, your company can pay you rent, etc, etc... and a small salary - taxed by IRS...

And Delaware law allows not to reveal true owners of a company.

I dont know how its today - maybe last years changed sth. But such entities exist not only in DL, also in Nevada and (probably) Virginia.

I'm not a lawyer so everyone should seek pro guidance. There is a lot of firms helping in registration of such entities in the whole world, but in my opinion for commercal activity DL state law is one of the best.

As far as I know for traders also good is Luxembourg (capital gains are not taxed), maybe also my country next year. So be it!

So far so good.
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