I get how they shield you from paying taxes in your country of residence. You just do business through Your Cayman Company LTD and then is out from your jurisdiction.
But then, how do you make use of that money?
If you transfer it to your personal account, that's income and bam, you pay Income Tax. If you just leave it there in some obscure malaysian bank account named under some proxy person then ... well... does this really happens?
What guarantee do rich people have that they're not going to take their money away? After all, it's not under their name.
Frankly, if you cant figure it out or don't have an accountant to sort it out for you, you probably shouldn't be doing it.
>>1109279
Eat shit, frankly.
>>1109203
They won't be working soon after all countries execute OECDs Automatic Exchange of Information plan (AEoI). Google it. Offshores are done for in 21st century. Even big names like Apple, Google, Amazon are getting buttfucked.
Sure you can use a proxy person, but that person can run off with your money and can still get buttfucked for holding funds and not paying tax.
>>1109203
That is why you just invest that money and take how much you need for business expenses, thus deducting from tax.
There are also some more advanced contracts where your local company takes a loan from offshore company that is incorporated by two other offshore companies that you are beneficiary of and then does some legal mumbo jumbo to technically not pay tax on the Aston Martin.
>>1109203
well for a start all your overseas spending can dodge taxation
secondly you can have overseas companies own stuff for you in your own country - for example your nominee company in the British Virgin Islands decides to buy a townhouse in Mayfair, London and lets you, the Russian oil baron, live there without it ever having to be in your name
you can also avoid sales tax when buying/selling your London mansion/other property... instead of selling the house you use a specialist estate agent to find a buyer and arrange a deal to transfer ownership of the BVI company that owns the house... house is then owned by the same 'person' (an offshore company) and no one has a clue who the actual owner is or that a sales has taken place...
in the UK the govt has cracked down on this a bit by imposing a tax on transferring ownership of a property to a company in the first place but there isn't much it can do about the multi million pound properties already owned by companies
What needs to happen:
>Comp A in China manufactures toys $1
>Comp A sells to Comp B for $1. Comp A's net income is 0 (1-1=0)
>Comp B retails toys for $3, net income $2 (3-1=2). Pays tax on $2
With tax heavens:
>A manufactures for $1
>A sells to C, cayman islands, for $1. A's income is 0 (1-1=0)
>C sells to B for $3. C's net income is $2 (3-1=2) pays low or no tax cause tax heaven
>B retails at $3. No income (3-3=0)
then
>C pays dividend to shareholders in another, or same tax heaven, tax on dividends = 0. Or just ireland or netherlands, who have tax treaties around the wolrd against double taxation. Or just issues dividends when shareholders need it, say $40,00 each for living expenses which are at a low tax braquet.
>shareholders
>>1109420
Holy fucking shit you're right!
Is this truly the end?
:'(
>>1109491
>secondly you can have overseas companies own stuff for you in your own country - for example your nominee company in the British Virgin Islands decides to buy a townhouse in Mayfair, London and lets you, the Russian oil baron, live there without it ever having to be in your name
You are still required to indicate the true beneficiary in this case. It should be you or someone you trust. So what happens when BVI shares this information with UKs government?
Are you sure you won't get buttfucked for your property then?
