Question English Ltd with Offshore shareholder

[GCM]

Dear all,

constellation:
there is an english ltd with a north cyprus offshore as a shareholder.
Aim is to deduct all funds out of the ltd. and gather them in the offshore in north cyprus.

Question:
how can the offshore shareholder issue invoices on long term to the english ltd. (over years) without getting trouble with english authorities?
I think it's too suspicious if a (shell) company (in this case the ltd.) allways gets invoices from the same shareholder so that the lionshare of fungs from the UK ltd. will accumulate in the offshore account in NC.

What do you think, maybe you got some hints?

thanks in advance.

 

[Sols]

Look into BEPS (Base Erosion and Profit Shifting) regulations. There are rules specifically set up to prevent exactly this.

 

[GCM]

I skimmed over these 15 measures taken by authorities (BEPS), but people are still running exactly this modell sown above.

This shows that it's working, even if there are any regulations like this. Therefore, there must be any "play-rules" which allow this. MAybe someone has a link or sth. like this for furtehr information, a book or anything else which helps.

 

[JohnnyDoe]

Very good strategy… in 1982

 

[GCM]

so tell me how it is done properly today

 

[CyprusLawyer101]

So your intetnion is to avoid the UK tax?
If not, then transfer the funds as dividends to the shareholder.

 

[Sols]

There is nothing preventing you from moving money out of a UK company. What you can't do is artificially move money out in an effort to evade tax.

You can invoice some amount out and you can pay the rest as dividends, for example. An accountant or tax adviser can help you with the exact amounts, as that will vary depending on size and type of business.

 

[GCM]

@ cyprus lawyer: yes, i want to avoid taxes in UK.

@Sols: I can invoice an amount out yes, but always to the same offshore-company and the dividents would also go to the same offshore-company which is the shareholder. Your suggestions sound good i just have to sophisticate it.
does anybody know offshore tax advisers for north cyprus?