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Tax for EU resident with UK LLP and multiple passports

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fromnowhere

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Mar 3, 2020
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#1
Hello
The situation is:
I have 3rd world country (non CRS complaint) passport, and passport of one of the EU countries, but is resident of Austria (EU passport is not Austrian)
UK LLP is formed on the name of 3Rd world country's passport, in place of residence of partners also stated that 3rd world country, bank accounts are also for that passport and residence. Last name is a little bit different in EU and non EU passport
In Austria all activities are done on the EU passport, official income from another job and taxes as well.
Should there be any tax problems with UK LLP income? It is just accumulated there.
Thank you
 
#2
fromnowhere said:
Hello
The situation is:
I have 3rd world country (non CRS complaint) passport, and passport of one of the EU countries, but is resident of Austria (EU passport is not Austrian)
UK LLP is formed on the name of 3Rd world country's passport, in place of residence of partners also stated that 3rd world country, bank accounts are also for that passport and residence. Last name is a little bit different in EU and non EU passport
In Austria all activities are done on the EU passport, official income from another job and taxes as well.
Should there be any tax problems with UK LLP income? It is just accumulated there.
Thank you
Click to expand...
Contrary to what all the others are going to write to you, in practical terms you will not hve any problem as long as your activities from one citizenship to the other are well separated (no monetary transactions from one to the other, share of adresses etc etc) No they are not going to use satellite technology to intercept your voice calls or scan your face from the cameras on the street . Just stay low . And by the way as you are describing your situation you do not have multiple passports , just 2 :p
 
#3
Joe Blasco said:
Contrary to what all the others are going to write to you, in practical terms you will not hve any problem as long as your activities from one citizenship to the other are well separated (no monetary transactions from one to the other, share of adresses etc etc) No they are not going to use satellite technology to intercept your voice calls or scan your face from the cameras on the street . Just stay low . And by the way as you are describing your situation you do not have multiple passports , just 2 :p
Click to expand...
Right. My fault, just thinking about getting 3Rd (Joke)
So...but from the legal perspectives, is it absolutely legal or it is still tax avoidance in Austria?
I should say it is online business and servers of UK LLP are not located in Austria
 
#4
fromnowhere said:
Right. My fault, just thinking about getting 3Rd (Joke)
So...but from the legal perspectives, is it absolutely legal or it is still tax avoidance in Austria?
I should say it is online business and servers of UK LLP are not located in Austria
Click to expand...
No, according to the current laws you are not legal. If you want to be a legal, volunteer to the Austrian authorities the existence of your LLP and you will pay some tax making you a valuable member of their community with all the great benefits and priveleges that this can bring...
 
#5
Joe Blasco said:
No, according to the current laws you are not legal. If you want to be a legal, volunteer to the Austrian authorities the existence of your LLP and you will pay some tax making you a valuable member of their community with all the great benefits and priveleges that this can bring...
Click to expand...
oh and about the servers you mentioned last, you are leaving a paper trail behind you ...
 
#6
Joe Blasco said:
No, according to the current laws you are not legal. If you want to be a legal, volunteer to the Austrian authorities the existence of your LLP and you will pay some tax making you a valuable member of their community with all the great benefits and priveleges that this can bring...
Click to expand...
What is particularly illegal? Is it because permanent establishment is triggered which will equal LLP to the austrian company?

And as well, there are 2 partners, one has 99%, another is 1%
That one with 1%, should he care at all since in fact he is not taking any part of doing the business (which, as I've mentioned) is even running in yet another country
 
#7
fromnowhere said:
What is particularly illegal? Is it because permanent establishment is triggered which will equal LLP to the austrian company?

And as well, there are 2 partners, one has 99%, another is 1%
That one with 1%, should he care at all since in fact he is not taking any part of doing the business (which, as I've mentioned) is even running in yet another country
Click to expand...
well the monstrocity of the current EU tax laws is that you are supposed to pay taxes where you are actually living. In your case is very well bonded, you have a full time job in Austria , residency , so you are actually living there. Problem is with other people that have the luxury to move from one country to the other every 2 months, so in truth they are not living permantly nowhere. Because the beaurocrats want to squeeze them out of their money one way or the other, this condition of actually living someplace does not apply ! They must declare ONE place of fictitious paper residency even if in the reality , they do not live there !
 
#8
Joe Blasco said:
well the monstrocity of the current EU tax laws is that you are supposed to pay taxes where you are actually living. In your case is very well bonded, you have a full time job in Austria , residency , so you are actually living there. Problem is with other people that have the luxury to move from one country to the other every 2 months, so in truth they are not living permantly nowhere. Because the beaurocrats want to squeeze them out of their money one way or the other, this condition of actually living someplace does not apply ! They must declare ONE place of fictitious paper residency even if in the reality , they do not live there !
Click to expand...
That's right. But what particularly is not legal in my scheme? UK LLP is taxed only at the place of residence of partners. Funds are being accumulated on UK LLP and not distributed.
When they will be distributed - taxes will be paid in Austria

The question is also about permanent establishment of the partnership. If it can be qualified as local company and subject to corporate tax as local company (though UK LLP doesn't have corporate tax in UK)
 
#9
fromnowhere said:
That's right. But what particularly is not legal in my scheme? UK LLP is taxed only at the place of residence of partners. Funds are being accumulated on UK LLP and not distributed.
When they will be distributed - taxes will be paid in Austria

The question is also about permanent establishment of the partnership. If it can be qualified as local company and subject to corporate tax as local company (though UK LLP doesn't have corporate tax in UK)
Click to expand...
my specialization is on citizenships immigration and matters that have to do with citizenship conflicts. Anyway trust me your tax status in austria is not so legal and be careful not to leave a huge paper trail behind you.
 
#12
Hi,
For me your schema is not legal because even if the money is not physically distributed and stays in the bank account of the company, you MUST declare the benefit in your revenu to Austria. This is the rule of the UK LLP and US LLC. At the end of the fiscal year of the LLP, you must declare the result as personal revenu. You cannot wait that the money arrives to you account.
 
#14
FRANCO said:
Hi,
For me your schema is not legal because even if the money is not physically distributed and stays in the bank account of the company, you MUST declare the benefit in your revenu to Austria. This is the rule of the UK LLP and US LLC. At the end of the fiscal year of the LLP, you must declare the result as personal revenu. You cannot wait that the money arrives to you account.
Click to expand...
To my understanding (which of course may be wrong) since money is not distributed it's not personal income yet. For UK LLP you declare it in UK and it is told that partners are responsible to declare their income in the place of residence.
But yes, I will meet Austrian tax advisor tomorrow and will try to figure this out.
 
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