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Vitaly
Depends upon how you set it up. If you do this as an individual, you're
correct. Again, I have to put a disclaimer here, as I haven't done this,
but I have spent time looking at it.
The approach I would use is as follows:
1- Set up a foreign corporation in a low tax or no tax location.
2- Own stock in this corporation, probably bearer certificates.
3- Do all your trading through this corporation, so any profits and/or
losses belong to the corporation.
4- Since this is a corporation, it pays any taxes due to whatever government
it operates under, so that it is in full and legal compliance with all local
laws. You, on the other hand, are merely a shareholder. No US taxes are due
and payable until either you receive a salary, dividend (regular income) or
sell your stock (capital gains).
5- You could also legally borrow from the corporation, depending upon the
local laws governing such things without a tax liability, IMHO. This would
have to be structured properly to insure compliance with all laws involved.
Again, these are just rambling thoughts, but one of these days I will
probably look into it. At the present time, and with the shaky state of the
world economy, I would rather keep my money here in the good ol' US of A :)
not that I have that much that I need to worry. If I ever get to the point
that it make a material difference, I'll research this in detail.
Just my opinion.
Guy
-----Original Message-----
From: owner-metastock@xxxxxxxxxxxxx [mailto:owner-metastock@xxxxxxxxxxxxx]
On Behalf Of Vitaly Larichev
Sent: Friday, August 14, 1998 10:41 PM
To: metastock@xxxxxxxxxxxxx
Subject: Offshore trading
Guy Tann wrote:
> .........
>
> That's why some futures traders have set up off shore and then only pay
> taxes when they bring the funds back into this country as income. Haven't
> done this myself yet, but have looked at it. With the internet, this is
> getting easier and easier, IMHO.
Hmm... in August 17, 1998 Business Week issue the article titled "Offshore
Squall at PaineWebber" maintains that all U.S. citizens should pay the
income
tax regardless of where they earn the income. So, a scheme with offshore
trading is legally a fraud, it says
Cheers, Vitaly
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