creation of a "piggy bank" company

[saetta]

Goodmorning everyone,
I have been following this forum for more than two months now.
I have decided to write.
I am an entrepreneur, I have a company in a very taxed state.
My type of business forces me to have all turnover, I cannot have any hidden sales.
I find myself paying tax bills every month, even 4 bills in some months.
I am considering setting up an offshore, anonymous, bank account company to transfer the company's earnings to.
This company must be in a state that doesn't stink of offense that doesn't alarm when you read the state on the invoices.
For example, pay the digital service provider or commission in order to leave these sums out of my state.
The company just has to manage the bank account and bill my company to get the money out.
I ask you:
1) Which suitable and economical jurisdiction
2) where can I have greater anonymity?
- United States it is easy to have anonymity but then when you have to open a bank account you go out into the open.
- eastern countries like hungary and bulgaria, i read that it is complicated with the language and people take advantage of the management costs become high.
Give me an idea.

 

[sonato]

Are you an US citizen or where in the world do you live?

 

[saetta]

I live in a very taxed country that borders Switzerland

 

[sonato]

You won't get rid off the tax office or your taxes by simply setting up a US entity nor will you sleep well if you setup some anonymous bank account for your business.

Inside the mentor group a guy describe exactly how you could setup a LLP in the UK with banking facility, sleep well at night and don't be a tax evader in the public eyes at least

 

[Marzio]

sleep well at night and don't be a tax evader in the public eyes at least

whithout moving tax residency?

 

[saetta]

I can't move my residence or my business.
This is why I want to remain anonymous in society

 

[JustAnotherNomad]

There are providers like @neweraoffshore that offer such a service for a fee. I haven’t worked with them, just mentioning it.

If you try to build it yourself, it will most likely be considered tax evasion, unless you pay a ton of money for substance (employees, offices). There is no anonymity. For anonymity, people usually use fake documents. So then you’d be on the hook for both tax evasion and identity theft.
Of course with the service, it would still be tax evasion. But at least it would be more likely to withstand an audit.

It would be a better approach to use an offshore company to bill customers directly, so that the money never touches your “main business.”

 

[Sols]

If you can't move yourself and/or the business, then this is not going to work (if you also want to avoid backtaxes, penalties, and jail).

Here are some keywords to research to understand why this won't work:

• Transfer pricing
• Tax residence
• CFC
• Permanent establishment
• CRS (Common Reporting Standard) and AEOI (Automatic Exchange of Information)
• TIEA (Tax Information Exchange Agreement)
• FATCA

 

[hernanday]

Goodmorning everyone,
I have been following this forum for more than two months now.
I have decided to write.
I am an entrepreneur, I have a company in a very taxed state.
My type of business forces me to have all turnover, I cannot have any hidden sales.
I find myself paying tax bills every month, even 4 bills in some months.
I am considering setting up an offshore, anonymous, bank account company to transfer the company's earnings to.
This company must be in a state that doesn't stink of offense that doesn't alarm when you read the state on the invoices.
For example, pay the digital service provider or commission in order to leave these sums out of my state.
The company just has to manage the bank account and bill my company to get the money out.
I ask you:
1) Which suitable and economical jurisdiction
2) where can I have greater anonymity?
- United States it is easy to have anonymity but then when you have to open a bank account you go out into the open.
- eastern countries like hungary and bulgaria, i read that it is complicated with the language and people take advantage of the management costs become high.
Give me an idea.

Without knowing your country or the exact business it limits our ability to help you, alot. Its like someone saying to a mechanic, my car won't turn on, I don't know what is wrong with it, but you cannot look at my car, I won't tell you the model or any details that you'd need to fix the car.
"I am considering setting up an offshore, anonymous, bank account company to transfer the company's earnings to."
1) This plan sounds stupid. Your offshore account will most likely not be anonymous, and is more than like due to CRS to be reported to your home nation and you will be caught evading taxes.

"This company must be in a state that doesn't stink of offense that doesn't alarm when you read the state on the invoices."
2) Any country that did have anonymous bank accounts or anything close to that would send alarm bells because there are so few of them.

Your entire thinking is completely wrong. You are basically trying to use anonymous structures and shifting out revenues to reduce taxes. You will lose this 100% of the time.

You need to shift your expenses not your revenues.
They do not need to be anonymous, just offshore subsidy/parent type corps set up properly with foreign offices.
It would achieve the same goal really.

 

[neweraoffshore]

@JustAnotherNomad , haha, it's not free . Of course want to earn some money on it.

@Sols is right. If you want to do it the 100% legal way, you can only become a PT or really live in a tax haven.

@saetta for the country "bordering" switzerland, you need quite a sophisticated approach to shift profits offshore. Just company in a jurisdiction wich doesn't "stink" like tax evasion is not enough and writing invoices with "various consullting or marketing - 50k€" is also not enough. The taxman will just simply overrule you and decline the invoice in case of an audit. I suggest you to read through this thread from me: [FOR EU CITIZENS] Problems when going Offshore - List
there you can see almost every problem you are facing. And i can tell you. There is no 100% legal way for it if you want to stay in the country which borders switzerland .

 

[JustAnotherNomad]

@neweraoffshore Read again, “for a fee,” not “for free.”