Black Unicorn wrote:
Where does the company get the funds to pay you?
From Tim's day work. It's a consulting company, i.e. it sells his services to whomever is employing him today. The whole idea was to hide Tim's income sources, or that's what he asked for anyway.
You can hide your income by putting it in another jurisdiction.
What pay? I don't get it. Where does this friend gets his money?
As a cut from the money Tim's employer gives him.
By the way, are there any PGP encrypted mailing lists for discussing serious tax fraud?
If such a list existed, would we tell an anonymous poster/fed?
If your above scheme is intended merely to conceal funds it is a fairly poor example as it depends on the secrecy of each and every 'employee' of the company.
No it doesn't. One person knows where they money went when it left the country (and he is getting paid for the risk of doing time). Nobody knows where the funds are concealed. Probably in a trust that you can access when you are on vacation abroad. Mr.X.