Take a loan in offshore company is that ok to avoid tax?

[JohnSeed]

I just read some where:

take a loan from that company ?
Sell that company rights of some imaginary software or any other useless crap. ?


that's how black is made into white .

Is this correct and can it be done without trouble later on?

 

[cosmo]

As long as the money is in Hong Kong, its yoru company's money, and you're the owner of the company. The company is a different entity, and as long as the money is in your name, no one is going to come after that money, cos the money belongs to the company. You make that money for the company so you draw a minimum wage and pay taxes for it, and get the company to give you perks such as rents and flight tickets. Your money gets added up in Hong Kong in your company's account and since you're the sole owner of the company its all your money, in the company's name. your govt can come after money thats in your name, but not in the name of a comapny that you own that is actually making the money and paying you a salary.


If you want to exit, which you wouldn't have to imo, just open a company at some off shore location, and make your hong kong copmapny pay for 'services' to your new company, and your money in Hong Kong is out and into your new company's account. Invest that money in all those weird Cayman Islands mutual funds if you don't know what to do with it

 

[JohnSeed]

As long as the money is in Hong Kong, its yoru company's money, and you're the owner of the company. The company is a different entity, and as long as the money is in your name, no one is going to come after that money, cos the money belongs to the company. You make that money for the company so you draw a minimum wage and pay taxes for it, and get the company to give you perks such as rents and flight tickets. Your money gets added up in Hong Kong in your company's account and since you're the sole owner of the company its all your money, in the company's name. your govt can come after money thats in your name, but not in the name of a comapny that you own that is actually making the money and paying you a salary.
If you want to exit, which you wouldn't have to imo, just open a company at some off shore location, and make your hong kong copmapny pay for 'services' to your new company, and your money in Hong Kong is out and into your new company's account. Invest that money in all those weird Cayman Islands mutual funds if you don't know what to do with it

Thank you so much for sharing your experience, it has been of lot of help to me also when approaching my tax adviser.

 

[cosmo]

Your welcome just post here or send PM if you need sample or more information :grin:

 

[JohnAlley]

The trick to get a lawyer to form a loan agreement for the company towards you is a great mechanism to avoid tax!

 

[JohnSeed]

Your welcome just post here or send PM if you need sample or more information :grin:

PM send, please reply asap

 

[JohnSeed]

The trick to get a lawyer to form a loan agreement for the company towards you is a great mechanism to avoid tax!

Do you know what the estimated costs are to get a lw firm do the task?

 

[JohnAlley]

I paid aprox 2000 dollars to get it all sorted out and documents signed and notarized.

 

[cosmo]

I paid aprox 2000 dollars to get it all sorted out and documents signed and notarized.

What was the average turnaround time ?

 

[andreas]

The loan agreement between you and your offshore company will only work if you have inserted real nominee director and shareholder, the company is required to have accounting and file tax reports each year. So you will need a good tax lawyer locally to help you once the taxman is knocking on your door

 

[deadpool]

I dont know how it would work .Nevertheless its a clever idea, OP.

 

[myoffshoreliving]

This can only work if you make use of a good tax lawyer and accountant that closely work together to setup this loan agreement so it looks natural and not something fake.

 

[Sam anderson]

I think this method is not good.. You may have some problems and get easily caught