D
DeletedUser9
Guest
Hypothetical situation:
You live in a country where you are taxed on worldwide personal income at 52%
You own a successful business (Call it B1) which does business on a global level and very little/none within your own country.
B1 is set up and registered in your own country where corporation tax is set at 12.5%
You don't like the idea of paying 52% on any income so you set up a holding company (B2) in the cayman islands which will have a 100% stake in B1 which is registered onshore.
B1 makes profits of $10,000,000 which it sends to B2 and B2 pays you a personal income of $1,000,000 which you are taxed $520,000 and left with $480,000.
$9,000,000 is left in a bank account in the caymans registered to B2 where there are no taxes.
Can B2 buy assets for your personal use ? such as cars, property etc
I know most countries tax residents on worldwide income but technically on a personal level only $1,000,000 was made.
Is this completely legal ?
You live in a country where you are taxed on worldwide personal income at 52%
You own a successful business (Call it B1) which does business on a global level and very little/none within your own country.
B1 is set up and registered in your own country where corporation tax is set at 12.5%
You don't like the idea of paying 52% on any income so you set up a holding company (B2) in the cayman islands which will have a 100% stake in B1 which is registered onshore.
B1 makes profits of $10,000,000 which it sends to B2 and B2 pays you a personal income of $1,000,000 which you are taxed $520,000 and left with $480,000.
$9,000,000 is left in a bank account in the caymans registered to B2 where there are no taxes.
Can B2 buy assets for your personal use ? such as cars, property etc
I know most countries tax residents on worldwide income but technically on a personal level only $1,000,000 was made.
Is this completely legal ?
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