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>I always thought that the offshore entity technique dos not legally work
>if you, the trader, are physically present in the US. The IRS would
>expect you to pay taxes earned in the US, whatever your legal
>jurisdiction.


Agreed.
>
>Also, I was under the impression that US citizens are subject to US
>taxes wherever they are in the world, for at least 10 years. In
>exchange, they get the $70,000(is that the correct #?) exclusion and the
>ability to offset local taxes against US taxes where an appropriate tax
>treaty has been signed.


Not necessarily so straightforward.

>In other worlds, it is hard to cheat the taxman in the US, even when you
>go abroad.


Also not so straightforward. It is not a question of cheating, not a
question of evasion, but a question of planning - organizing your affairs
(fiscal and none) in a suitable to you and the taxman.

A collective investment scheme (in the Channel Islands, for example) could
manage money from there trading in most exchanges (futures, options, forex,
etc.) The problem arises when the members take their share of the profits.
How much they can keep personally depends on where they physically reside
(and oone or two other factors).
Of course, this is summary, as each case needs to evaluated on its own
merits.
What is erroneous is the notion that the IRS (or anyone else) can stick its
nose, willy nilly, into the running of a company based in another country,
especially if it is run in line with that country's laws.

Double tax laws are of course to be taken into account where approporiate.
>Regards
Gram,


>DanG
>
>
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