Tax residency offshore company

[latisja]

I'm currently in the proces of incorporating a company in an offshore jurisdiction.
Products will be send from China but a European company is a patent holder and so a patent is valid in the EU. Since I operate from outside the EU I don't think they can do anything about it since the patent is only valid in the EU and the customer is responsible for importing the goods into the country.

The company is incorporated in a 0% tax jurisdiction with a private register but is managed from China. Payment is done with cryptocurrencies. Since the company is managed from China, the company has it's tax residency in China. Since payment is done in crypto, how would the Chinese government find out?
Financial institutions are obliged to share this info, but since payments is done in crypto no financial institution has any information whatsoever. Am I correct?

Thank you for the answer.

 

[altair77]

Managed in china means that you have a physical office in china or not ???
I dont know a china's tax legislation , but if the payment is made in crypto and you dont have a physical office in china, for me is ok.

 

[latisja]

Managed in china means that you have a physical office in china or not ???
I dont know a china's tax legislation , but if the payment is made in crypto and you dont have a physical office in china, for me is ok.

No mean that I live in China and 'manage' the company from China instead of the offshore jurisdiction. No physical office.

 

[Tax Cow]

I'm not sure what answer you're looking for.

If you register a brand new car or buy a luxury home in China, the tax office is more likely to have interest in having a closer look at your tax reports. Even if you execute the technical part flawlessly and manage to detach your identity from your crypto addresses, you can still get caught simply because your lifestyle does not match what is on your tax reports. They will not know you have crypto assets, but they sure will know you did not report all.

For the sake of argument, let's assume you hide assets successfully and do not live an extravagant life. What's the purpose of having wealth if it does nothing to improve your life?

 

[latisja]

My question was if offshore agents share information about UBO with tax authorities in country of residence. I know that under CRS, financial institutions are obligated to so but offshore agents are not. Common sense would tell me they don't, but didn't have first hand experience yet and so I could simply ask this on here. But I think I got my answer already, they don't share this information.