Question about offshore and capital gain tax

What you wrote is nonsense to me. I will remain to see if anyone can make any sense.

CyprusLawyer101 said:

What you wrote is nonsense to me

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He is probably talking about acquiring the HK company using an offshore company and receive capital gains tax free

It's a risky game you are playing there. You better check it with a local tax firm.

euinchina said:

John owns Company A in HK
New offshore Company B acquires Company A on a monthly payment plan
Company B pays John $X every month. John doesn't pay tax because they are capital gains.

1) Will it work if Company B is unrelated to John?

2) Would it still work if UBO of Company B is John?

3) Would it be easy for HK tax bureau to find out the UBO of Company B?

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Thanks
The drafting of the contract would be important in determining this. Hire-Purchase arrangements are structured similarly and the income qualifies as interest. Valuations are also relevant here.

If it was a once off transaction then income would have qualified as capital gains so I dont see why it couldnt work if you paid in installments.

At first glance it shouldnt make any difference who is controlling the buyer in charcterizing the income. Unless the intention is to launder funds from the buyer's side in which case the ownership of company B would be relevant in determining an offence - however this is not a tax/capital gains question but something different.