I don't want to pay tax | Forex Factory

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I don't want to pay tax

  • #1
  • First Post: Jun 20, 2006 9:43pm Jun 20, 2006 9:43pm
Is there a simple 1,2,3 way of avoiding tax legally?

I have gone through the posts and there is so much useful information e.g. Green Company articles and other items alike (mainly US tax related). I am waiting on VWB-III as well. But if there is a simpler way, please share.

Nash

PS. Information with respect to Australian tax system will be highly welcomed!
  • #2
  • Jun 20, 2006 9:50pm Jun 20, 2006 9:50pm
Yes....scale back every thing to the maximum allowable income before taxes are required ....then find a cash job,......then collect food stamps and any other public assistance available.....of course you will probably have to move into more modest living arraingments.

welcome to the poverty level.........
I don't like taxes any more than any one else but if you make good money it is part of the deal.
of course you can find another country that has less tax burdens and give up your citizenship in your presantly taxing country.
Same Whore .... Different Dress
  • #3
  • Jun 20, 2006 10:15pm Jun 20, 2006 10:15pm
In Australia, if you are a professional day trader, and trading is where you earn your full time income - then unfortunately, you will be made to pay income tax.

If trading is not where you get most of your money from - then you wont need to pay any tax on your trading income. You could probably keep this away from the Australian Tax Office (ATO). (And pray to god you dont get audited)

If you claim you are making 45K a year, and are driving around in a brand new registered Ferrari. Then you will be investigated by the ATO, and receive a massive fine, and be audited for the next 5 years. (From what people have told me, they would rather go to jail, then have the ATO audit you for 5 years.)

Renee Rivkin got done, and he had his money in Switzerland - which is meant to be a safe haven for evading tax - it just shows how strong the links the ATO has overseas. The ATO as my accountant says, has very long tentacles and can suss anyone out. And they have been given a lot of powers by the government.

The best advice would be - If you are making enough to be charged over 30% in income tax - register a company with ASIC, then all you need to do is employ one person other than yourself, and you can claim 30% company tax, and your income tax can be dividends offset from the company in the form of fully franked dividends, paid to you whenever you want.

But the thing is with this option - Even if you do register a company, and your the sole director - you cannot claim company tax, until you have other stakeholders in the business. (you broker isnt included).

So the way you can claim the 30% company tax, is by going partnership with someone, or by employing someone. However, there is also a snag here too....

ASIC requires, that if you run an investment company, that you must obtain a 'Dealing license' from ASIC under the current Australian Financial Services License Scheme (AFS license). These are quite hard to get, and you must have the right experience and education to get one. Also your company must have the 'organisational competencies' to be given an AFS license.

Also, when applying for an AFS license, you need a good lawyer - a good lawyer who is a professional in the Corporations Act 2001, is extremely expensive.

If you run a company that primarily deals in investments, without a license - you can get fined up to $250,000.

SOOOOOOOOOOOOOOOOOOOOOO - in short.....

Pay your taxes in the form of income tax, until you can afford to set up a well defined investment company.
  • #4
  • Jun 20, 2006 10:22pm Jun 20, 2006 10:22pm
Q) What's good about paying taxes?

A) NOTHING….not a damn thing....but, taxes are part of the rules of the game. If you can't play by the rules, don't play the game.

If one is spending their efforts on how to get out of paying taxes, then one would be wasting your efforts.

  • #5
  • Jun 20, 2006 11:07pm Jun 20, 2006 11:07pm
If you are in the U.S. then I would consider reading the FairTax book. It will definately open your eyes. Then, visit the www.FairTax.org website. The goal here is to abolish the income tax and have one flat tax for all Americans.
  • #6
  • Jun 20, 2006 11:07pm Jun 20, 2006 11:07pm
Quoting Colbolt2
taxes are part of the rules of the game.
Who's rules and who's game?

Of course there are ways that work.

You can most likely bet that those who are making the rules don't play the game.
The framework is there; we just have to work on our frame of mind.
  • #7
  • Jun 20, 2006 11:30pm Jun 20, 2006 11:30pm
Quoting jmichaelrush
If you are in the U.S. then I would consider reading the FairTax book. It will definately open your eyes. Then, visit the www.FairTax.org website. The goal here is to abolish the income tax and have one flat tax for all Americans.
...and except for a few percent one way or another, what would be the difference? A tax is a tax.

If you don't want yo live in conspiracy all your life, you have to pay taxes. How they are spent, that's another story but about this... call your congressman.



Dane
  • #8
  • Jun 20, 2006 11:40pm Jun 20, 2006 11:40pm
Quoting great*dane
...and except for a few percent one way or another, what would be the difference? A tax is a tax.

If you don't want yo live in conspiracy all your life, you have to pay taxes. How they are spent, that's another story but about this... call your congressman.



Dane
Conspiracy? Who's? The taxed or the taxers?
Hey Dane, I think that hood may be blocking out your peripheral vision!
The framework is there; we just have to work on our frame of mind.
  • #9
  • Jun 20, 2006 11:57pm Jun 20, 2006 11:57pm
Nice info there Rusty, and unfortunately as another Aussie I cannot offer any better news than what Rusty has provided, and Rusty has said it better than I could anyhow. Let me know when you have a spare million and we'll start a Aussie FF investment company
You can quit and they won't care, but you will always know.
  • #10
  • Jun 21, 2006 12:17am Jun 21, 2006 12:17am
Quoting niceguy777
Conspiracy? Who's? The taxed or the taxers?
Hey Dane, I think that hood may be blocking out your peripheral vision!
For example, if you can't tell anybody how you avoid taxes, that to me is "living in conspiracy". Having secrets that can change your life if they get out, that's conspiracy. I use the term very loosly.

The worst conspiracies in this world are those created in our own heads.

Also, I don't use vision that much. I feel.

May the Force be with you.

Dane
  • #11
  • Jun 21, 2006 12:20am Jun 21, 2006 12:20am
In the US the way to avoid income tax is to avoid income. It is really quite simple. Just don't make any money. I have been doing this verry successfully for years and years. There is no trick to it at all.

If you are into Forex it is even easier. Just trade like there is no tomorow. Trade trade, trade, day and nite, just trade. Take the good trades with the bad ones and soon, even if you had a bit of money to start with, now you will have none and you can mabie even take the loss forward to the next year. (see a tax professional for any and all tax advice.)
Nolite dormiens pungere ursum. -- Latan Proverb.
  • #12
  • Jun 21, 2006 12:20am Jun 21, 2006 12:20am
Quoting Colbolt2
Q) What's good about paying taxes?

A) NOTHING….not a damn thing....but, taxes are part of the rules of the game. If you can't play by the rules, don't play the game.

If one is spending their efforts on how to get out of paying taxes, then one would be wasting your efforts.

You mean like streets and and fire departments and security is all over rated?

I do think making people a high percentage of taxes depending on the money make is plain stupid though, you are going to pay more taxes as it is.

The only legal way to avoid taxes in the US is to give your money to someone in another country with no strings attached and hope they will give you some back when you need it. But you will probably spend more money in legal fees trying to prove it to the IRS (they never listen) then you would paying taxes.

One thing that works well is starting an S-corp. With income under about 75k you will only be paying about 5k. The problem is that in 2010 the tax laws from 2001 go back into effect and you will be back to normal taxes.
  • #13
  • Jun 21, 2006 12:27am Jun 21, 2006 12:27am
Quoting MrWhipple
In the US the way to avoid income tax is to avoid income. It is really quite simple. Just don't make any money. I have been doing this verry successfully for years and years. There is no trick to it at all.

If you are into Forex it is even easier. Just trade like there is no tomorow. Trade trade, trade, day and nite, just trade. Take the good trades with the bad ones and soon, even if you had a bit of money to start with, now you will have none and you can mabie even take the loss forward to the next year. (see a tax professional for any and all tax advice.)
This was really good, man... and I know that you are dead serious.

Dane
  • #14
  • Jun 21, 2006 12:28am Jun 21, 2006 12:28am
Quoting great*dane
For example, if you can't tell anybody how you avoid taxes, that to me is "living in conspiracy". Having secrets that can change your life if they get out, that's conspiracy. I use the term very loosly.

The worst conspiracies in this world are those created in our own heads.

Also, I don't use vision that much. I feel.

May the Force be with you.

Dane
Yup, that's loose!

But I completely agree about our own heads. Mine's been a disaster area for most of my life.

Feeling is good. Feeling with clarity is even better.
The framework is there; we just have to work on our frame of mind.
  • #15
  • Jun 21, 2006 12:31am Jun 21, 2006 12:31am
How about this as an alternative......talk to your tax advisor regarding chartable donations, convert as much of your tax liability to these charities and any other tax deductable wright off as you can, that way at least you have some control over how your tax dollars are spent.
Same Whore .... Different Dress
  • #16
  • Jun 21, 2006 12:41am Jun 21, 2006 12:41am
Quoting johnedoe
How about this as an alternative......talk to your tax advisor regarding chartable donations, convert as much of your tax liability to these charities and any other tax deductable wright off as you can, that way at least you have some control over how your tax dollars are spent.
I was going to say that but I got distracted by that post about my hood

Finally we are getting somewhere.

Dane
  • #17
  • Jun 21, 2006 12:50am Jun 21, 2006 12:50am
Quoting great*dane
This was really good, man... and I know that you are dead serious.

Dane
If you reallllllly knew me you would know that I am seldom dead serious.

But having been mostly dead three times in the past few years, and having once owed the IRS $500k I do sometimes get a bit worked up about death and taxes. (but not today)
Nolite dormiens pungere ursum. -- Latan Proverb.
  • #18
  • Edited 1:48am Jun 21, 2006 1:41am | Edited 1:48am
Quoting great*dane
...and except for a few percent one way or another, what would be the difference? A tax is a tax.

If you don't want yo live in conspiracy all your life, you have to pay taxes. How they are spent, that's another story but about this... call your congressman.



Dane
Yes, a tax is a tax, but, I don't take it that you have read the FairTax agenda. Essentially, we are all paying nearly 50% of our income(money we have actually earned through working) for all of our neccessities through income tax, among others. Whereas, with the Fairtax, we would pay one flat tax (~24% or our income) for everything. The government is taking around 30% of our income initially, then taxing us on our consumables, along with taxes for other goods. How does that make you feel?
Sorry for my little rant. It's just that I just finished reading the FairTax book and it really urked me.
  • #19
  • Jun 21, 2006 8:13am Jun 21, 2006 8:13am
Quoting jmichaelrush
Yes, a tax is a tax, but, I don't take it that you have read the FairTax agenda. Essentially, we are all paying nearly 50% of our income(money we have actually earned through working) for all of our neccessities through income tax, among others. Whereas, with the Fairtax, we would pay one flat tax (~24% or our income) for everything. The government is taking around 30% of our income initially, then taxing us on our consumables, along with taxes for other goods. How does that make you feel?
Sorry for my little rant. It's just that I just finished reading the FairTax book and it really urked me.
OK...if you're referring to the fact that we have to pay sales tax or state income tax, well...duh...the federal government isn't the only government we're paying money too.

There are more intelligent legal ways to REDUCE the amount of taxes paid. Opening up a corporation or an LLC is a good LEGAL way to minimize your tax bill. You can then expense a good portion of your office needs (computer, internet, electricity, mileage, etc).

Is there a 1-2-3 how to avoid taxes for dummies book out there? of course not. However, go to a Barnes & Nobles or something and pick up a book on how to reduce your taxes...plenty of information there. Step-by-step? maybe not quite so remedial, but you sound like you could possibly figure it out. My suggestion...open up a Corp (S, C or LLC) and figure out what portion of your daily expenses are actually due to trading - which could be a lot when you add it up. This will basically help to offset your profits. Then, when you're figuring that out, pay yourself a salary (which you will pay taxes on)...make your salary nominal, but fair (don't try to pay yourself $10 a month...you need to make your salary fair relative to your company's income) then, with the left over money, you can either keep it in the company for growth (C corp only) or give a dividend (which is taxed at a lower rate for the time being) to yourself. Instant tax reduction.

Taxes are a necessary cost to living in the country you live in. Regardless of what you feel is fair, you have to get used to the idea of living and playing within the rules. While taxes will be your biggest financial burden, it also is a cost of doing business in the country you live in.

Actually, now that I think about it...the simplest way for you to avoid paying taxes is to move somewhere where taxes aren't an issue...get the hell out of the US and move to the UAE or something. There you'll be safely in the middle east paying no taxes. Problem solved, right?
  • #20
  • Jun 21, 2006 12:01pm Jun 21, 2006 12:01pm
Hey I like this Fair Tax thing.

KILL THE IRS! quit making criminals of all of us just because we (and even the irs) can't understand the bloated tax code.

Just think of how much money could be redircted by not having to fill out those pesky tax forms, and paying through the nose to make sure we don't get tossed into jail because we did it wrong.
Nolite dormiens pungere ursum. -- Latan Proverb.
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