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Anonymously, because these aren't my words, here's a response to the tax
posts from a person that is retained for advice in this area.
Yea, I know of these guys. (floathouse.com)
Their ideas are old and useless. Similar structures have been blown away by
the IRS, usually because they find that the "arrangement" is tantamount to
the US taxpayer having "control" and that the trusteeship is really a sham.
If you have control, you have US taxes...period.
Under their structure, you own a foreign LLC and fund it with cash that it
then loans to a trust of which you are the "Protector" and thereby can
control how funds are invested. The trust owes no US taxes itself since it
is a foreign person. But having any interest in a foreign trust now triggers
lots of required filings with the IRS.
Under the regs of sections 679 and 674, it is now very easy for the IRS to
attribute the trust's income back to the US taxpayer.
This is why no decent practioners uses offshore trusts for any attempted tax
purpose (perhaps for asset protection, but zero tax effect).
-----Original Message-----
From: Cab Vinton [mailto:cvinton@xxxxxxxxxxxxx]
Sent: Wednesday, April 02, 2003 12:20 PM
To: L_Omega
Subject: RE: taxes
> as i set here contemplating paying my 50%+ tax rate and how much more
> i will have to pay to finance a war, which the out come could have
> been easily replicated by a couple of Israeli soldiers if given the
> authority.
>
> i am also wondering about tax rates in other countries any comments?
Well, there's always the offshore route, but many of the programs have
always seemed to me to cross the line into tax evasion.
Here's one site, for example, that claims tax-free investing:
http://wwww.floathouse.com/legal/
Would love to see someone poke some holes in their strategy.
Interesting sources of info providing the other side are:
http://www.quatloos.com/offshore_planning_scam.htm
http://www.rpifs.com/
http://www.goldhaven.com/
http://www.offshorealert.com/welcome.asp
... among others.
Another approach I've come across is the use of business entities to divert
income not needed for living expenses into tax-exempt/ -preferred accounts.
I haven't actually done this myself, no point asking me for details, I'm
afraid.
Good luck, Mark.
Cheers,
Cab
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