So, if you have a company outside of your home border, and you think everything it s ok, you could go in trouble if the authority want to?!?
It's not that easy. If you are tax resident as individual level in a country and you have more than 20% as shareholder of a foreign company, you might technically be in risk over time, but again, it's not that simple and the alert will not be triggered automagically by this rule, but because you move and declare
dividends profit from a foreign company to local tax authorities in your annual tax report, which may eventually, if certain criteria matches, plug the red flag and they might investigate things.
I have read that, generally,
CFC only applies to companies with a higher business volume than $750k per year, but this might not be accurate since each country applies CFC differently, which is a mess and increases radically the uncertainty about this whole f*****g s**t.
Fortunately, tax authorities are not that competent yet because, you know, public sector is not driven by competitiveness, right the opposite, so things are slow, messy, complex and not smart at all.
Imagine if a company like Google or Facebook, with all its efficiency, ability to innovate and access to near real-time, constant, privileged data about you, had to be responsible of the tax department?
Well, control of money will be such efficient that almost no one will be able to skip paying taxes and lots of millions will emerge from black economy. They will also tell you, proactively, what you own in taxes with a perfect decimal precision and give you a one-step link to pay them digitally with no pain. They will also automatically fill all the forms bulls**t for you, and remove all manual, messy, physical steps. They will even notice when you can optimize your taxes so you don't end up paying more than necessary. But... this is far from being real in any f*****g country of this world, because, you know, you are a slave of the government, and the government is not to serve you, as in a free market will be, right the opposite.
Anyway, the ideal way to get rid of CFC bulls**t is moving your a*s to a jurisdiction that does not apply CFC, as mentioned before.
