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jason_in98
Squeeker
Joined: Jan 04, 2007
Posts: 10
Status: Offline
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 Posted:
July 23, 2007 - 06:31 PM |
 
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| Post subject: Offshore banking advice |
Hi,
I've currently changed to contracting for a UK based company that I used to work full time for before. Due to the nature of my work I can work from anywhere with an internet connection so I am planning and indeed practicing being out of the UK for over 9 months of the year (changing country every couple of months or so) to claim non-residency and tax free status.
However I currently only have a UK bank account and if I have my money is paid into this I believe it will be liable for tax? I'm desperately trying to find out how to quickly open an offshore account but all the information I have googled for and read hasn't really been that helpful.
Also initially I don't have a large sum of money to deposit although I could get a loan but really I would rather not. I'm not a big financial institution (We are talking about ~£74k a year) so lots of the options I have seen don't suit me.
There must be some people out there in a similar situation that have found a workable solution? |
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horsemandk
StreetBeater
Joined: Mar 23, 2006
Posts: 2241
Location: Shanghai
Status: Offline
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| Posted:
July 24, 2007 - 12:06 AM |
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Off-shore accounts are only for investments and not banking!
You could try Singapore, they have specialized services and I know that Keppel Securities is one of them (try and google) |
_________________
Those parts of the system that you can hit with a hammer (not advised) are called hardware; those program instructions that you can only curse at are called software. |
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hc
Post Roaster
Joined: Apr 04, 2007
Posts: 4545
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July 24, 2007 - 12:11 AM |
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| horsemandk wrote: |
Off-shore accounts are only for investments and not banking!
You could try Singapore, they have specialized services and I know that Keppel Securities is one of them (try and google) |
^ Looks like you dont know what you are talking about.
Give a call to Austen Morris.
They have good helpful people there.
Talking from personal experience.
They will give actual advice, not an opinion. |
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horsemandk
StreetBeater
Joined: Mar 23, 2006
Posts: 2241
Location: Shanghai
Status: Offline
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July 24, 2007 - 12:22 AM |
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Obviously you don't know what you're talking about, Austen Morris is an offshore investment company and I know because I'm a client there 
So if it's investment you want there's Austen Morris and FPI as well! |
_________________
Those parts of the system that you can hit with a hammer (not advised) are called hardware; those program instructions that you can only curse at are called software. |
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horsemandk
StreetBeater
Joined: Mar 23, 2006
Posts: 2241
Location: Shanghai
Status: Offline
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July 24, 2007 - 12:22 AM |
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The header said offshore banking advice not investment! |
_________________
Those parts of the system that you can hit with a hammer (not advised) are called hardware; those program instructions that you can only curse at are called software. |
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Andreas
Board Royalty
Joined: Feb 27, 2004
Posts: 6442
Location: 31 N 121 E
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July 24, 2007 - 01:02 AM |
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Any of these financial services companies can help you to set up an offshore banking account. But it's not difficult to do it yourself. You don't have to go that far. If you just want to keep your money out of the claws of the tax monster, open an account with HSBC in HK. Or even better set up your own BVI company with corporate account. I did the same almost 10 years ago, works like a charm |
_________________
If it has tits, tires, or a transom, there's gonna be issues! |
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hc
Post Roaster
Joined: Apr 04, 2007
Posts: 4545
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July 24, 2007 - 01:07 AM |
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| horsemandk wrote: |
Obviously you don't know what you're talking about, Austen Morris is an offshore investment company and I know because I'm a client there
So if it's investment you want there's Austen Morris and FPI as well! |
Austen Morris can help you set up a bank account in Guernsey with a phone call. If that's not banking offshore, then tell me what it is Big Brain.
Maybe in your brain if they do "offshore investment" they must ONLY do "offshore investment", but happens not to be the case.
Andreas advice is also pretty good.
Getting a PowerVantage account in HK would already solve a big part of the problem (you DO NOT need to be a HK resident, contrary to what uninformed people (horsemandk) will probably say). |
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Andreas
Board Royalty
Joined: Feb 27, 2004
Posts: 6442
Location: 31 N 121 E
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July 24, 2007 - 01:10 AM |
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Correct, both the PowerVantage and the Premium (which you actually don't really need, but I got stuck with one) will also give you multi currencies in one account, plus one of the best internet banking systems. On top of that you can do all the paperwork with HSBC here in Shanghai. |
_________________
If it has tits, tires, or a transom, there's gonna be issues! |
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8lrr8
StreetBeater
Joined: Oct 14, 2004
Posts: 2344
Location: here!
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July 24, 2007 - 11:23 AM |
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| horsemandk wrote: |
| You could try Singapore, they have specialized services and I know that Keppel Securities is one of them (try and google) |
anyone have experience w/ Singaporean bank accts? one singaporean told me that for non-residents, the govt requires u to verify the source of every deposit u make into your acct.
so if i deposit 5k USD into my singaporean acct, i need to prove to them it isnt drug money.
true/false? |
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8lrr8
StreetBeater
Joined: Oct 14, 2004
Posts: 2344
Location: here!
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July 24, 2007 - 11:27 AM |
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| Andreas wrote: |
| Any of these financial services companies can help you to set up an offshore banking account. But it's not difficult to do it yourself. You don't have to go that far. If you just want to keep your money out of the claws of the tax monster, open an account with HSBC in HK. Or even better set up your own BVI company with corporate account. I did the same almost 10 years ago, works like a charm |
what are the banking privacy laws of HK? specifically, suppose Uncle Sam suspects u have an acct in HK. are they able to force your bank to hand over acct info? will the HK banks succumb to these bullying tactics?
from what i've gathered, singaporean banks will not answer to U.S. feds unless they have reason to believe u're not paying singaporean taxes (if applicable). for all other matters, i hear they say "fuck u" to the inquiring country. |
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Andreas
Board Royalty
Joined: Feb 27, 2004
Posts: 6442
Location: 31 N 121 E
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July 24, 2007 - 03:29 PM |
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What I heard HK is pretty good. Bear in mind that what people DO and what people SAY can be quite different. To build in an extra safety I have the mentioned BVI account, which makes my construction still legally tax free. |
_________________
If it has tits, tires, or a transom, there's gonna be issues! |
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8lrr8
StreetBeater
Joined: Oct 14, 2004
Posts: 2344
Location: here!
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July 24, 2007 - 03:38 PM |
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| Andreas wrote: |
| What I heard HK is pretty good. Bear in mind that what people DO and what people SAY can be quite different. To build in an extra safety I have the mentioned BVI account, which makes my construction still legally tax free. |
i take it u dont have US citizenship, correct? |
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Andreas
Board Royalty
Joined: Feb 27, 2004
Posts: 6442
Location: 31 N 121 E
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July 24, 2007 - 03:49 PM |
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That's correct. But it should not make a difference if you use the BVI company. Because as a person you then are only taxable over the income that you get (and that's up to you how big you make this portion), and not over the income of the company, and the expenses you make on behalf of the company. |
_________________
If it has tits, tires, or a transom, there's gonna be issues! |
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8lrr8
StreetBeater
Joined: Oct 14, 2004
Posts: 2344
Location: here!
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July 25, 2007 - 11:51 AM |
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| Andreas wrote: |
| That's correct. But it should not make a difference if you use the BVI company. Because as a person you then are only taxable over the income that you get (and that's up to you how big you make this portion), and not over the income of the company, and the expenses you make on behalf of the company. |
dont think it works quite like that for americans. but it's another idea for me to consider. thx. |
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wolfy
Fire-eater
Joined: Sep 13, 2004
Posts: 2510
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July 25, 2007 - 01:03 PM |
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wolfy
Fire-eater
Joined: Sep 13, 2004
Posts: 2510
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July 25, 2007 - 01:04 PM |
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| horsemandk wrote: |
Off-shore accounts are only for investments and not banking!
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So why did Standard Bank give me an ATM card for my offshore account? |
_________________
Good old English spirit! http://www.youtube.com/watch?v=7MG27BKwjaI |
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8lrr8
StreetBeater
Joined: Oct 14, 2004
Posts: 2344
Location: here!
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July 25, 2007 - 01:18 PM |
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| wolfy wrote: |
| Why? Are Americans not allowed to own companies or assets overseas? |
they are, but we're taxed on worldwide income. i think what Andreas was alluding to is that so long as u dont pay yourself via the corporation, u can reduce your tax liability. while this may be true, i still dont think u can completely eliminate all taxes (e.g. corporate taxes). i dont think Uncle Sam is gonna let u do make profits tax free from your corporation simply because your business is not in the USA.
i'm no tax lawyer, so u should do your own research... |
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wolfy
Fire-eater
Joined: Sep 13, 2004
Posts: 2510
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July 25, 2007 - 01:24 PM |
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| Quote: |
| i still dont think u can completely eliminate all taxes (e.g. corporate taxes). |
You pay tax to "Uncle Sam" as you put it, on your personal income. You don't pay corporation tax in America if your company is overseas. |
_________________
Good old English spirit! http://www.youtube.com/watch?v=7MG27BKwjaI |
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8lrr8
StreetBeater
Joined: Oct 14, 2004
Posts: 2344
Location: here!
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July 25, 2007 - 01:27 PM |
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| wolfy wrote: |
| Quote: |
| i still dont think u can completely eliminate all taxes (e.g. corporate taxes). |
You pay tax to "Uncle Sam" as you put it, on your personal income. You don't pay corporation tax in America if your company is overseas. |
if the loophole is really that easy/huge, then great! else, i have several other tricks up my sleeve anyway. |
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connor_us65
Newbie
Joined: Jan 04, 2007
Posts: 4
Status: Offline
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| Posted:
July 25, 2007 - 01:28 PM |
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| Post subject: Offshore banking advice |
Hi,
I would like to suggest you for great incorporation services provider called www.taxhavencompany.com I thing it will be right place for your solution. It covers nearly everything you need to do for a Seychelles incorporation of an offshore company; opening a bank account; renewal annually; attesting the documents in the required consulates; Apostille service; keeping the records confidential. All this through a person whom you can contact directly through email, phone, fax, or face to face only if you wish.
Best wishes! |
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p1atl10
Board Royalty
Joined: Mar 18, 2005
Posts: 6343
Location: Shanghai
Status: Offline
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July 25, 2007 - 01:36 PM |
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It sounds like jason_in98 is inquiring about UK tax law. About which I know squat.
I have done the rsearch on the US Tax laws. Granted it was 2 years ago, but do not believe they have changed significantly since then.
Any personal income, or corporate profits gained anywhere in the world, are taxable by the US Government if you are a US Citizen or Corporation.
On the personal income side, the first $82,000 is tax exempt, the remainder being taxed at the tax rate of the total amount. Failure to declare all income, or failure to file (even if you make less than 82K) can result in significant penalties and fines.
Tax laws on income derived from a US citizen via an ownership of overseas assets has changed dramaticaly over the last two years. Too many people incorporating businesses in the Bahamas or other tax havens. Uncle sam is trying to close these loopholes.
Income derived from the corporation (salary) is taxable. Hiding it offshore as "corporate profits" is much harder to do these days.
Check with a tax lawyer on ownership of foreign corporations and income derived thereof. Pretty sure the 2 year old information I have is out of date. |
_________________
Not all chemicals are bad. Without chemicals such as hydrogen and oxygen, for example, there would be no way to make water, a vital ingredient in beer.....Dave Barry |
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wolfy
Fire-eater
Joined: Sep 13, 2004
Posts: 2510
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July 25, 2007 - 01:49 PM |
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| p1atl10 wrote: |
Any personal income, or corporate profits gained anywhere in the world, are taxable by the US Government if you are a US Citizen or Corporation.
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Wong. Corporation tax is avoided by moving your company offshore. It's perfectly legal.
| Quote: |
| Too many people incorporating businesses in the Bahamas or other tax havens. Uncle sam is trying to close these loopholes. |
What's he going to do? Invade the Bahamas? |
_________________
Good old English spirit! http://www.youtube.com/watch?v=7MG27BKwjaI |
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hc
Post Roaster
Joined: Apr 04, 2007
Posts: 4545
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July 25, 2007 - 02:13 PM |
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wolfy
Fire-eater
Joined: Sep 13, 2004
Posts: 2510
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July 25, 2007 - 02:22 PM |
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Offshore jurisdictions like the Bahamas would never change their banking laws anyway. So many people with power and influence have their wealth tied up in these places, to upset the status quo would put too many lawmakers' noses out of joint. |
_________________
Good old English spirit! http://www.youtube.com/watch?v=7MG27BKwjaI |
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p1atl10
Board Royalty
Joined: Mar 18, 2005
Posts: 6343
Location: Shanghai
Status: Offline
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July 25, 2007 - 04:10 PM |
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Wolfy wrote:
W(r)ong (sic). Corporation tax is avoided by moving your company offshore. It's perfectly legal.
I am only referring to US Tax laws and US Citizens here.
Much of the new and propsed legislation came about because of the corporate scandals involving Enron and Worldcoms use of offshore corporations to hide gains and losses ...trickle down theory to the use of the same laws against individuals who shelter income.
http://www.irs.gov/businesses/small/article/0,,id=106568,00.html
Long Article.
Salient points
The Abusive Tax Scheme Program is concerned about taxpayers who exploit secrecy laws of offshore jurisdictions in an attempt to conceal assets and income subject to tax by the United States.
Some different types of entities and schemes being used in Abusive Offshore Tax Schemes include:
1. Foreign trusts
2. Foreign corporations
3. Foreign (offshore) partnerships, LLCs and LLPs
4. International Business Companies (IBCs)
5. Offshore private annuities
6. Private banking (U.S. and offshore)
7. Personal investment companies
8. Captive insurance companies
9. Offshore bank accounts and credit cards
10. Related-party loans
Abusive schemes usually create structures that make it appear a nonresident alien or foreign entity is the owner of assets and income, when in fact and substance, true ownership remains with a U.S. taxpayer.
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Conclusion
Citizens and residents of the United States are taxed on their worldwide income. To help prevent the use of offshore entities for tax evasion or deferral, Congress has enacted several specific provisions in the Internal Revenue Code. Some provisions trigger recognition of gains that would otherwise be deferred. Others deny deferral of tax on income moved offshore.
Though promoters of offshore schemes often advance technical arguments, which purport to show that their scheme is legal, the intent of Congress remains clear. U.S. taxpayers are not to be allowed to evade taxes by shifting their own liability to some foreign entity. |
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Not all chemicals are bad. Without chemicals such as hydrogen and oxygen, for example, there would be no way to make water, a vital ingredient in beer.....Dave Barry |
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