Using a Singapore company to open a Jersey company

[John89]

Can someone give please enlighten me? I am going to change all the names of the countries involved. Please don't comment on the countries!!!

Right now I live in a low-tax jurisdiction (say Singapore) and I am soon moving to a high-tax jurisdiction (say France). Most of my income will come from dividends, and wan to reduce taxation to the minimum. I considered different options, but it seems that the easiest/cheapest option is for my brother to open a company in a country with low taxes on dividends (e.g. Jersey, where he lives), the money would be his, and I would work for this company for a salary, for which I would pay income taxes. This way I would reduce taxation from 52% to 25% or so. So far, so good, the countries are different and as far as I can see it works fine.

The government of France should not know that the money is mine. One problem is that the government of Jersey would charge me 6% of my money if I donated it to my brother. I wonder if there is a way to avoid this? For example, if I open a company in Singapore, and then use the Singapore company to open the Jersey company (with my brother being the director). Of course the French government can find out who is the owner of the Singapore company, and ultimately tax me on the dividends. Or would the French government be unlikely to find out? Would there be a benefit in having the Jersey company owned by the Singaporean company?

Again, please don't comment on the countries, only on the structure.

Thank you very much!

P.S. I am not an American citizen and I don't live in the US.

 

[Martin Everson]

You need to weigh up if over the long term even with a 6% up front hit your still saving money over heavy taxes you would otherwise incur on the income. I would say your best to just pay the 6% and be done with creating any structure. Also once money is donated to your brother it it not legally yours anyway.

You can also always control the way and how much you pay yourself in your new high tax country according to its tax code.

 

[JohnLocke]

I would say your best to just pay the 6% and be done with creating any structure.

totally agree. Some people need to consider to not be that greedy. 6% "Tax" is nothing compared to what 99% of people around here pay!

 

[troubled soul]

Sometimes Saving 6% costs you 60%

 

[Martin Everson]

You do not need any of this huge problem, there is a simple way more suitable and surely less expensive. Make a Ltd in Gibraltar and open a bank account in Jersey or Isle of Man, then all is taxed at 0%....you understood? ZERO, NULL, ANY TAXES

Ok.....so your obviously new to the offshore world or simply ignorant of CFC, CRS etc .

 

[Sols]

Probably I am ignorant and probably no, I leave you to decide for yourself

It's best if you don't mislead other users. A Gibraltar company with a bank account in Jersey or Isle of Man might itself be subject to 0% in Gibraltar. But that's only a small fraction of the puzzle.

Under modern regulations, such structures routinely fall apart and get people in serious trouble.