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The way I understand these schemes is that they require minimum balance way above what an average person has to be effective, but not sure. Would love a profess

by _feus 1y ago

The way I understand these schemes is that they require minimum balance way above what an average person has to be effective, but not sure. Would love a professional tax engineer/CPA opinion.

rapnie 1y ago
There was a documentary on Dutch TV a couple of years ago, about 'DYI tax haven management' for common people. Can't remember which public channel it was on, and what the name was. Might have been part of "Tegenlicht" series. Update: Maybe it was the program Rambam where the makers set up their own tax haven based on the methods of the big corporations. Information in Dutch: https://pers.bnnvara.nl/rambam-ontduikt-belasting-met-medeweten-van-de-belastingdienst/ https://pers.bnnvara.nl/rambam-ontduikt-belasting-met-medewe...
- snickerdoodle12 1y ago
  Meanwhile the Netherlands is taxing the common people like crazy, and politicians are talking about raising taxes even more.
  - conception 1y ago
    The Netherlands also has the number two quality of life in the world so maybe don’t worry about it so much? https://www.numbeo.com/quality-of-life/rankings_by_country.jsp https://www.numbeo.com/quality-of-life/rankings_by_country.j...
    - cyanydeez 1y ago
      it's weird when Americans day dream of giving tax breaks to billionaires because they might be rich one day; it's a another thing for people who ostensibly have the best social system in the world looking at America and say "we should do that".
      - snickerdoodle12 1y ago
        There are plans for making mortgages more expensive by removing tax deductions and for taxing inheritance a whopping 75%. That is hardly giving tax breaks to billionaire, more so screwing over anyone who isn't dirt poor. Oh, and I'm already paying pretty much half my income in various taxes. Anyone who has a significant amount of money can avoid these taxes, as always.
        Tadpole9181 1y ago
        [flagged]
        ReaperCub 1y ago
        The problem with inheritance tax is that the person pays taxes all through their lifetime and then when their significant others inherit that wealth (which already has been taxed once at least) it gets taxed again. The issue isn't the amount, the issue is the principle of it. I suspect BTW the very rich won't ever pay these taxes as there are always ways to restructure the wealth or simply move it elsewhere. I know this is done in the UK. So what it does is punish the middle classes the most.
        cyanydeez 1y ago
        Paying for stability is not a problem.
        dragonwriter 1y ago
        > The problem with inheritance tax is that the person pays taxes all through their lifetime and then when their significant others inherit that wealth (which already has been taxed once at least) it gets taxed again. Yes, because that's a transfer to different people. That's not a problem. The problem is that it's not just treated as income to the recipients—which it manifestly is—with the income tax then being modified to include both advance recognition and windfall spreading options to allow taxpayers to deal with irregular income in a fair basis with more regular income. This is also the problem with capital gains tax. And its not th people who have the kind of income that avoids regular income taxation that are getting screwed by that.
    - deleted 1y ago
      [deleted]
- Bluestein 1y ago
  > Might have been part of "Tegenlicht" series. Consistently the best thing on TV.-
deleted 1y ago
[deleted]
khurs 1y ago
No. Anyone can register a LLC in any of these places. They have minimal filing requirements going forward too. You may be required to have a local agent, and they will add their address and names as the nominee shareholders so you remain anonymous. Then with an LLC, the company can open bank accounts and you can move money. Any money made offshore is non-taxed locally. No different to Delaware.
thephyber 1y ago
There are 2 major reasons why people choose to use layers of corporations in other countries: tax minimization (in their domestic country) and obscurity of the assets-owners relationship. The latter is used by corrupt politicians, oligarchs (extremely wealthy people who have massive influence on policy/politics), and to stifle investigations by civil investigations (divorce), to stifle criminal investigations (political corruption, sanctions avoidance, fences for thieves, a convenient vehicle for transactions or large assets so governments/ oversight can’t easily track them). There is a minimum overhead required (you need at least a part time CPA and attorney to give you the strategy, more if they actually implement it), but I don’t think it requires you be ultra wealthy. The problem is that most law-abiding, non-sociopath people don’t benefit much from avoiding the law.

by _feus 1y ago

The way I understand these schemes is that they require minimum balance way above what an average person has to be effective, but not sure. Would love a professional tax engineer/CPA opinion.

rapnie 1y ago

There was a documentary on Dutch TV a couple of years ago, about 'DYI tax haven management' for common people. Can't remember which public channel it was on, and what the name was. Might have been part of "Tegenlicht" series. Update: Maybe it was the program Rambam where the makers set up their own tax haven based on the methods of the big corporations. Information in Dutch: https://pers.bnnvara.nl/rambam-ontduikt-belasting-met-medeweten-van-de-belastingdienst/ https://pers.bnnvara.nl/rambam-ontduikt-belasting-met-medewe...

snickerdoodle12 1y ago
Meanwhile the Netherlands is taxing the common people like crazy, and politicians are talking about raising taxes even more.
- conception 1y ago
  The Netherlands also has the number two quality of life in the world so maybe don’t worry about it so much? https://www.numbeo.com/quality-of-life/rankings_by_country.jsp https://www.numbeo.com/quality-of-life/rankings_by_country.j...
  - cyanydeez 1y ago
    it's weird when Americans day dream of giving tax breaks to billionaires because they might be rich one day; it's a another thing for people who ostensibly have the best social system in the world looking at America and say "we should do that".
    - snickerdoodle12 1y ago
      There are plans for making mortgages more expensive by removing tax deductions and for taxing inheritance a whopping 75%. That is hardly giving tax breaks to billionaire, more so screwing over anyone who isn't dirt poor. Oh, and I'm already paying pretty much half my income in various taxes. Anyone who has a significant amount of money can avoid these taxes, as always.
      - Tadpole9181 1y ago
        [flagged]
        ReaperCub 1y ago
        The problem with inheritance tax is that the person pays taxes all through their lifetime and then when their significant others inherit that wealth (which already has been taxed once at least) it gets taxed again. The issue isn't the amount, the issue is the principle of it. I suspect BTW the very rich won't ever pay these taxes as there are always ways to restructure the wealth or simply move it elsewhere. I know this is done in the UK. So what it does is punish the middle classes the most.
        cyanydeez 1y ago
        Paying for stability is not a problem.
        dragonwriter 1y ago
        > The problem with inheritance tax is that the person pays taxes all through their lifetime and then when their significant others inherit that wealth (which already has been taxed once at least) it gets taxed again. Yes, because that's a transfer to different people. That's not a problem. The problem is that it's not just treated as income to the recipients—which it manifestly is—with the income tax then being modified to include both advance recognition and windfall spreading options to allow taxpayers to deal with irregular income in a fair basis with more regular income. This is also the problem with capital gains tax. And its not th people who have the kind of income that avoids regular income taxation that are getting screwed by that.
  - deleted 1y ago
    [deleted]
Bluestein 1y ago
> Might have been part of "Tegenlicht" series. Consistently the best thing on TV.-

deleted 1y ago

[deleted]

khurs 1y ago

No. Anyone can register a LLC in any of these places. They have minimal filing requirements going forward too. You may be required to have a local agent, and they will add their address and names as the nominee shareholders so you remain anonymous. Then with an LLC, the company can open bank accounts and you can move money. Any money made offshore is non-taxed locally. No different to Delaware.

thephyber 1y ago

There are 2 major reasons why people choose to use layers of corporations in other countries: tax minimization (in their domestic country) and obscurity of the assets-owners relationship. The latter is used by corrupt politicians, oligarchs (extremely wealthy people who have massive influence on policy/politics), and to stifle investigations by civil investigations (divorce), to stifle criminal investigations (political corruption, sanctions avoidance, fences for thieves, a convenient vehicle for transactions or large assets so governments/ oversight can’t easily track them). There is a minimum overhead required (you need at least a part time CPA and attorney to give you the strategy, more if they actually implement it), but I don’t think it requires you be ultra wealthy. The problem is that most law-abiding, non-sociopath people don’t benefit much from avoiding the law.