You seem to know a bit of the US tax code. Here's a scenario:
You have an LLC or Corp here in the US. It contracts with a foreign corp based overseas for "web services" These services eat up 70% of your revenues leaving you with a net profit margin of 30%. You file in the US all your income but, per the tax laws, deduct the business expense to the Overseas corp. So you only pay taxes on the 30% you keep in the US.
The Overseas corp, which incidentally is owned by a "representatives board" which you pay, deposits the money they receive from your contracts, minus processing fee, into a local bank with US branches. You have an ATM card and can access the funds from a US branch of that international bank.
Variable #2: Certain countries have TIGHT bank secrecy codes so they cannot disclose who owns a particular account.
Put these two variables together and we need to answer the following:
Let's hear it everyone...Legal or NOT Legal?
By the way, US corps use a version of this exploiting some holes in the "finished product" and "foreign income" sections of the US Tax Code.
Quote:
Originally posted by Pleasurepays
its the laser guided bombs i wanna pay for... the
ones with the cameras in the nose cones.
those things kick ass... at least you see what
you get for your money and what your tax
dollars blew up.
|