how to reduce taxable income ?

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pesto

Offshore Agent
Entrepreneur
We always hear a whole lot about how easy it is to hide in a tax haven and how people in for decades have cheated in taxes, VAT and other taxes.

They are less than 5 years ago who could register a company online in Cyprus, Seychelles, Belize or Panama, you could use your own papers or nominees and not really have to worry about anything more, at least not the tax authorities. Today 2021 (soon) what can we do then, are we really something to the end?

Where are the days when we could send our documents by e-mail to any agent who then set up company with nominee director, nominee shareholder and even helped to establish a bank account which was impossible to find for various authorities.

We must realize that it is not that easy anymore. The days are numbered and for every day that passes from now on, it becomes harder and harder to do anything about the tax.

If you still want to reduce your tax to a minimum, then I have come to the following:

One sets up a company in Belize, the Seychelles or even in Cyprus. For this purpose, you get papers from a homeless person, it is easy and cheap, a few hundred euros and it is done. Once the company is set up, you make sure you get a proper office, a man who sits and stares at holes in the sky day in and day out, a phone and makes sure there is electricity and water connected as you get a bill of every month.

When you now want money out of this setup, you do it either via crypto and another setup (check mentor gold) or you create a loan for yourself, and hope that the tax authorities accept this. If you keep it for a relatively small amount, a significant tax reduction should be possible.

Something I forgot?
 

Morrad

Active Member
Oh, I can see that this may no longer be an option.

It was a scheme used by big corporations such as Google and was legal all the way.

More on the scheme here: How tp Use the Double Irish With A Dutch Sandwich to Reduce Taxes

Basically, there were loopholes allowing the transfer of profits from Europe to tax havens using two irish companies and one dutch company without paying any taxes on the profits.

It seems that in 2015, these loopholes were closed and the companies doing this were allowed to continue until 2020.
 

Morrad

Active Member
Maybe one cat setup a company in EU (maybe UK) and another company in an offshore location like Cayman Islands.
Theoretically, isn't it possible to make a licensing agreement between the two companies stating that the company in Cayman Island will get a percentage from licensing fees from the company based in EU - thereby, the EU-based company's expenses increases and the expenses will be sent tax-free to the company in Cayman Island where it is 0% corporate tax..?
 

Hyo

New member
Maybe one cat setup a company in EU (maybe UK) and another company in an offshore location like Cayman Islands.
Theoretically, isn't it possible to make a licensing agreement between the two companies stating that the company in Cayman Island will get a percentage from licensing fees from the company based in EU - thereby, the EU-based company's expenses increases and the expenses will be sent tax-free to the company in Cayman Island where it is 0% corporate tax..?
Yes, I also believe a structure like this may work. Hot issue here is to avoid a clear relationship between UBO´s of each corporation.
 

Morrad

Active Member
Yes, I also believe a structure like this may work. Hot issue here is to avoid a clear relationship between UBO´s of each corporation.

Yes, exactly.

I have found some free License Agreement templates online, however I don't really know if they can be used.
Do you know if this can be done if a company in Cayman Islands register it's logo for trademark, and the company in EU uses this logo - a "cheap way out" ..?
 

Hyo

New member
Well, if the CI company has more than this client it sure can be done. Again, the name of the game is do your best to avoid a clear relationship between the two companies. If the CI IBC only client is the UK company and its only purpose is to hold intellectual property exclusively for this company that, in my view, is asking for trouble on the long term. Something way easier is to make the CI IBC a service supplier to the UK company. This , together with a clear separation of UBOS and ideally more than one client, will work for some time.
 

Paper Chaser

Active Member
Oh, I can see that this may no longer be an option.

It was a scheme used by big corporations such as Google and was legal all the way.

More on the scheme here: How tp Use the Double Irish With A Dutch Sandwich to Reduce Taxes

Basically, there were loopholes allowing the transfer of profits from Europe to tax havens using two irish companies and one dutch company without paying any taxes on the profits.

It seems that in 2015, these loopholes were closed and the companies doing this were allowed to continue until 2020.
Yes exactly, it was working fine from 1980 to 2015 (according to Wikipedia), but it has been closed in 2015. So it's no longer an option.

The Double Irish With A Dutch Sandwich reminds me of the current "Double Maltese With Another Island Sandwich" (2x Maltese corporations + 1x UK or Cyprus corporation) :D, so I assume Malta's tax heaven won't last forever neither.

Predictions, anyone? :)
 

Morrad

Active Member
Yes exactly, it was working fine from 1980 to 2015 (according to Wikipedia), but it has been closed in 2015. So it's no longer an option.

The Double Irish With A Dutch Sandwich reminds me of the current "Double Maltese With Another Island Sandwich" (2x Maltese corporations + 1x UK or Cyprus corporation) :D, so I assume Malta's tax heaven won't last forever neither.

Predictions, anyone? :)

Maybe it will work until the next "Panama Paper" release or some big "scandal" :rolleyes:.
 

2diamondsaday

BANNED MEMBER
Yes exactly, it was working fine from 1980 to 2015 (according to Wikipedia), but it has been closed in 2015. So it's no longer an option.

The Double Irish With A Dutch Sandwich reminds me of the current "Double Maltese With Another Island Sandwich" (2x Maltese corporations + 1x UK or Cyprus corporation) :D, so I assume Malta's tax heaven won't last forever neither.

Predictions, anyone? :)
How would be this structure in details?
Very curious about
 

Paper Chaser

Active Member
You can search up my posts and threads (simply click on my profile), so you will find all discussions about Europes Last Man Standing Tax Heavens (Malta, Cyprus) and their business models. ;)

Short reminder: to make use of any benefits these days, you will basically have to relocate to the actual place and make it the centre of your life/business.
 

EliasIT

Corporate Services
Mentor Group Gold
There are legal ways. You just move to 0% country like UAE and reduce your tax.
Avoidance is a crime. You would end up in jail sooner or later. Be smart - optimize tax, not avoid.
very good advise, for people that are unable to move. Think about how you can deduct most as expenses from your company tax. Some countries have wonderful loopholes left.
 

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