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$200K stuck on Paypal - What would you do in this case ?

Moulaga

New member
Hello everyone,

I can't believe I'm posting here. Thanks in advance for reading and helping.

I'm doing affiliate marketing (whitehat) and using Paypal (Personal account!) for about 8 years..The current balance is around $ 200K (compiled affiliate commissions) and I have never reported my Paypal income to the Tax dept in my home country.

The situation will probably change with the OECD convention so I need to get that money out of Paypal via an offshore company (or any) then sending it from that offshore company to myself ( My accountant found a way that I'd pay "only" 15% income tax which is fine by me)


Issues :
- Paypal is "risky" and may close my account or take the money anytime
- Paypal is under my personal name / home country .. (so can't change the country, neither the name)


Questions :
- How to get money out from Paypal knowing that I can't change the country.. (allow only local and US bank accounts)
- I need a 0% corporate tax as I would pay the 15% on income.. Which offshore 0 corporate tax would you choose ?
- There is a possibility to link Paypal to personal Payoneer then from Payoneer send it to my local bank account but considering the big amount, Payoneer may block it + wouldn't the bank find it strange that my name appear in the sender and in the recipient lol ? By the way, are banks and tax departement have access to "senders" names ?

I thought about a solution but want to ping you mind first and see if you any. better!

Cheers
 

mange38

Entrepreneur
Set up a company in Estonia or Georgia (or both) with its own PayPal which sells some online services. Pay for this service by transferring $XXXX per month from your personal PayPal to your business PayPal and then withdraw this to the business bank account.

Companies in Estonia and Georgia pay taxes only on profit distribution which means you can reinvest the money somewhere else.

Btw which country are you tax resident in?
 

maxmmm

Active Member
mange38 wrote what looks like a good idea

I'll add that you need to do this ASAP - PayPal is insanely risky, keeping such sums in PayPal is crazy... can get frozen at any moment
 

onlma

New member
I concur with @maxmmm actually came across this forum looking for something else, I have immense experience in these things having worked at the highest board levels of multi-nationals and also setting up Apple/Google style structures for ourselves, keeping even $1,000s in PayPal is just not smart, they are what we call "soft banking" meaning they can for 6-12mths do more or less whatever they want, I suggest you follow @mange38 over that 6-12mth period so as to dilute it, you basically have to go as slow as they do, rush it and you may have have the "clock" reset on you.
 

onemansomewhere

BANNED MEMBER
Hello everyone,

I can't believe I'm posting here. Thanks in advance for reading and helping.

I'm doing affiliate marketing (whitehat) and using Paypal (Personal account!) for about 8 years..The current balance is around $ 200K (compiled affiliate commissions) and I have never reported my Paypal income to the Tax dept in my home country.

The situation will probably change with the OECD convention so I need to get that money out of Paypal via an offshore company (or any) then sending it from that offshore company to myself ( My accountant found a way that I'd pay "only" 15% income tax which is fine by me)


Issues :
- Paypal is "risky" and may close my account or take the money anytime
- Paypal is under my personal name / home country .. (so can't change the country, neither the name)


Questions :
- How to get money out from Paypal knowing that I can't change the country.. (allow only local and US bank accounts)
- I need a 0% corporate tax as I would pay the 15% on income.. Which offshore 0 corporate tax would you choose ?
- There is a possibility to link Paypal to personal Payoneer then from Payoneer send it to my local bank account but considering the big amount, Payoneer may block it + wouldn't the bank find it strange that my name appear in the sender and in the recipient lol ? By the way, are banks and tax departement have access to "senders" names ?

I thought about a solution but want to ping you mind first and see if you any. better!

Cheers
You are just thinking a wrong way:

1. Tax evasion happened. Just moving cash to another company and return it bank in form of dividends, does not change a situation. Tax evasion in the most of countries is a criminal offence. Moving money there and back after crime was commited, is a money laundering. Penalty for money laundering is usualy much more higher than for tax evasion only. The most of civilized countries can investigate your taxes up to 10 years back. Just moving a money somewhere and back does not resolve your situation.

2. Having such amount of money in PayPal is crazy. They are used to freeze accounts with lower amounts if it is not a business account.

When you want to optimize a taxes, it is necessary to do it in advance. Not afterwords.

The only legal way from this situation is to move money from PayPal to your personal bank account and declare all taxes in your country for all that years and pay some fines...
But as I understand, this is not something you want to do. I do not know in which country you are a fiscal resident. Just based on informations you provided, I expect to be some european countries. 4 of them has 15 % tax on received dividends.

If you want to launder a money, what is exactly what you want to do, no one si going to help you. Or at least, I hope so. There is a huge difference between helping someone to optimize taxes legally and do it in advance and laundering money with source in tax evasion, which happened.
 

Sh0w3n

Lawyer
As said by the users before, you'll have to pray and not raise any questions on PayPal's side. As soon as you start moving larger sums, they will block your account and ask questions that you can hardly answer.

And as outlined by onemansomewhere, there is only three ways:
1. declare the money, which will most likely cause some problems. You will need a lawyer. You will pay fines.
2. Do what you outlined yourself and hope for the best. But this will most likely sooner or later cause problems.
3. Go the dark way. This will break more laws obviously but let's you keep most of the money.
 

Untangle

New member
As far as I know, PayPal would have reported you to the IRS already given the amount. Anything from 10k and up I believe
 

Sols

Entrepreneur
Just withdraw from PayPal to your home bank account. But consider taking a proactive approach and make arrangements with your local tax authority to settle your dues and negotiate fines/penalties. Speak with a lawyer to help you out. Depending on where you live, tax authorities can be surprisingly open to cooperation if you come to them willingly with back taxes and a good explanation.

What's 15% tax plus some penalties compared to potential jail time for money laundering and tax evasion? What's your freedom worth?

Set up a company in Estonia or Georgia (or both) with its own PayPal which sells some online services. Pay for this service by transferring $XXXX per month from your personal PayPal to your business PayPal and then withdraw this to the business bank account.
This will raise flags as soon as someone at PayPal realizes that the director, shareholder, and/or UBO of this company is the same as the personal account who seems to be the only customer of the company. In money laundering terms, it's considered layering and will get you not only shut down but also have a SAR reported against you. SARs stick around for a long time and risks getting law enforcement attention, in addition to the tax authority.

Even if you use nominees and fake UBO, the fact that there is only one customer who just so happens to be slowly draining their personal account into a new PayPal account belonging to a company will raise flags. It increases the risks of funds being frozen.
 

bibing

New member
If you are in a EU country sometimes governments issue a tax amnesty.

You can declare all "dark/hidden" money you have in lieu of a fixed tax %.

For me it's already crazy to keep 200,000USD in paypal honestly
 

Agaba

New member
Buy bitcoin using PayPal, I see some sellers accepting paypal. Or purchase a movable asset like cars / machines that you can easily sell in your country.
 

Sh0w3n

Lawyer
If you are in a EU country sometimes governments issue a tax amnesty.

You can declare all "dark/hidden" money you have in lieu of a fixed tax %.

For me it's already crazy to keep 200,000USD in paypal honestly
There is ways to do this properly. But depending on his setup, this will become tricky. And if he goes down that road, he should stop and don’t try to hide it any other way through exchanging it to crypto. But the downside (this is for Germany but it applies to most neighboring countries) is that he will face a trial. He won’t go to jail for evading approx 80-100k taxes in Germany if he didn’t interact in any illegal activities, but he won’t get away with a warning either. You’ll have to keep in mind that delayed accounting is already considered tax evasion in many countries around Europe. So cleaning up the mess needs some serious planning. Most of the people who claim tax amnesty do it wrong and end up with no advantages. Consult a lawyer OP if you want to go the legal way.


Buy bitcoin using PayPal, I see some sellers accepting paypal. Or purchase a movable asset like cars / machines that you can easily sell in your country.
If the PayPal account is in his name, this won’t work for long. Claiming identity theft won’t work in most cases either. In some countries there are a few ways out of this but it’s still risky.

Where is OP from?
 

Educate

Entrepreneur
OP, get PP debit card and withdraw some in cash via ATMs. See if you can find trusted person to buy Bitcoin from (with some markup). Bitcoin cannot be confiscated.

You can also make expensive as hell purchases with PayPal like luxury watches and then resell them for cash.

Try to do it gradually, not in one day. Stretch it out for a year. Bitcoin purchases (be careful not to get scammed tho) + expensive items purchased online + ATM withdrawals
 
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smbdoff

Offshore Agent
1) You need to first find out whether PayPal already reported your income to the tax office, which seems like they didn't. Otherwise, you should have already received a call from your local tax authorities. PayPay generally reports you once your income level reaches a specific threshold. For US and UK it used to be 200 transactions or 20k per year, whichever comes first. You can research this, the info is available online.

I know a person with a personal account in EU, actually several of them. When the annual income approached ~$30k, if I remember correctly, PayPal would restrict an account and request shitload tax papers. So I'm not even sure how you got away with that amount over the course of 8 years.

2) The second you start moving large sums of money (unless you were regularly moving these amounts), I can guarantee you that PayPal will temporarily restrict your account. Then an intelligent support representative will take a look at your account and you are fucked. They will likely block you for breaking their TOS and might even report you to authorities. After 180 days MAYBE they will let you withdraw the funds into a bank account in EU so you may want to plan for this ahead. PayPal is notorious for keeping customer funds whenever they can get away with this so it's likely they simply won't unfreeze them after 180 days.

3) I wouldn't listen what others are suggesting about cutting a deal with authorities. I assume $200 is only a part of the amount that you generated and getting authorities involved seems like a recipe for disaster. At least consult an experienced tax attorney before going this route.

4) I'd probably try slowly moving the funds by making expensive LEGITIMATE purchases that accept PayPal as a payment method. I honestly have no clue if it's possible, but maybe look into buying a property or a business or something of this sort. At least this way you can move most of your funds AND also provide proper documentation for PayPal. DO NOT BUY BITCOIN.

5) Find someone who's been in this situation and knows how to get out.

Again, consult an attorney first, the one who knows how to deal with shady activities.
 

isyet

Silver Member
The amount is not too much. Not worth the risk. How long has your money been in paypal? It varies according to your country. However, you can make tax returns for 5 years retrospectively across the EU. Of course not in all EU countries. The Ministry of Finance will ask you for all your files. If you fail with 5 years, you will pay a fine. But they will still be very tolerant to you. Absolutely do not resort to illegal roads. It will cost you much more damage. For this amount, it is not worth to run for life. As said above, try to keep the money in your country. Buy something. Make payments.
 

Sulu

New member
Let's not forget Paypal is still "just an internet company"... You would make a good case claiming that someone must've stolen your ID and operated the account under your name. Obviously you would make this claim after you've successfully removed all of your funds to a secure place.
 

Sulu

New member
Buy bitcoin using PayPal, I see some sellers accepting paypal. Or purchase a movable asset like cars / machines that you can easily sell in your country.
This makes sense. You are free to spend your money. Maybe you like to blow it all on porn or gambling. Or you buy (oldtimer) cars, for your hobby collection. Etc, etc.
 
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