Re: Why I Pay Too Much in Taxes
Timothy C. May wrote:
Indeed, I am extremely limited in how I can avoid complete traceability of my major income sources. Not rich enough to shelter income in a really big time way
That's just lack of creativity. Try this: Get a friend of yours to setup a consulting company and hire you (and maybe a few more people who pay too much taxes,acting like a mixmaster). The company pays you salary to cover your cost of living. Anything above that, i.e. money that you would otherwise save, is paid to an offshore company as license fees (or something, this is the creative part). This is really legal as long as you don't receive any money from offshore without paying the taxes. If you borrow the money back it gets a little fuzzy. Thousands of people in upper middle class are doing exactly this, so the mixmaster is really in place already. The local mix is just an extra precaution for deniability (it was my friends company, I had no idea what he was up to!). For the friend to accept the (very minor) risk of jail, he/she should probably be much poorer than you, or have a *lot* of clients, to make his pay outweight the risk. By the way, are there any PGP encrypted mailing lists for discussing serious tax fraud? Mr.X
-----BEGIN PGP SIGNED MESSAGE----- On Wed, 8 May 1996, Anonymous wrote:
Timothy C. May wrote:
Indeed, I am extremely limited in how I can avoid complete traceability of my major income sources. Not rich enough to shelter income in a really big time way
That's just lack of creativity. Try this:
Get a friend of yours to setup a consulting company and hire you (and maybe a few more people who pay too much taxes,acting like a mixmaster). The company pays you salary to cover your cost of living. Anything above that, i.e. money that you would otherwise save, is paid to an offshore company as license fees (or something, this is the creative part).
Where does the company get the funds to pay you? As the source of personal services income is the site of the preformance of services, your salary will be taxible at U.S. rates. Licensing fees hoarded into an offshore holding company will be taxed yearly regardless of their distribution as dividens (if the money is invested as equity) and the principal taxed on repayment if characterized as debt. It will not, of course be legally yours if deposited without either classification.
This is really legal as long as you don't receive any money from offshore without paying the taxes. If you borrow the money back it gets a little fuzzy.
Except that it is going to cause your friend who set it up to incur the penalities that surround classification of his company as a Foreign Personal Holding Company. If he is a U.S. citizen, he can deduct the costs of sending you salary, but that means he still has to pay about 60% of what goes out. (Revisit the double taxation issue).
Thousands of people in upper middle class are doing exactly this, so the mixmaster is really in place already. The local mix is just an extra precaution for deniability (it was my friends company, I had no idea what he was up to!).
For the friend to accept the (very minor) risk of jail, he/she should probably be much poorer than you, or have a *lot* of clients, to make his pay outweight the risk.
What pay? I don't get it. Where does this friend gets his money?
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.
Mr.X
-----BEGIN PGP SIGNATURE----- Version: 2.6.2 Comment: Autodocument signed iQCVAwUBMZAMNGqgui0rHO4JAQEV5gP+KRMrGMiqhcWznJs/tOw/gmW7GupfLGN1 UIliPgELUDK1YdRG/LLzKNp5xz9CM7WNNg4gNBEMxkVlCBMumDP7RRcAosWuyxy7 6QwBd/uul9MynZqAoDMI3Tant9j4XpFZOeg7LkvJ0wAJU5jin7JSsrJfQLPEvT4+ +jsRcmJxSB4= =MUh4 -----END PGP SIGNATURE----- --- My preferred and soon to be permanent e-mail address:unicorn@schloss.li "In fact, had Bancroft not existed, potestas scientiae in usu est Franklin might have had to invent him." in nihilum nil posse reverti 00B9289C28DC0E55 E16D5378B81E1C96 - Finger for Current Key Information Opp. Counsel: For all your expert testimony needs: jimbell@pacifier.com
Black Unicorn <unicorn@schloss.li> writes:
>> 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? Well, if such a list does exist, I would like to know about it. -Robin
On Thu, 9 May 1996, Robin Powell wrote:
Black Unicorn <unicorn@schloss.li> writes:
>> 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?
Well, if such a list does exist, I would like to know about it.
-Robin
Again, in the absence of any credentials or recommendation, I can't see how the moderators/originators/managers of such a list would disclose the details of its publication. --- My preferred and soon to be permanent e-mail address:unicorn@schloss.li "In fact, had Bancroft not existed, potestas scientiae in usu est Franklin might have had to invent him." in nihilum nil posse reverti 00B9289C28DC0E55 E16D5378B81E1C96 - Finger for Current Key Information Opp. Counsel: For all your expert testimony needs: jimbell@pacifier.com
If it was a government sting operation the detials might be easily found. The kind of information we're discussing is clearly of high value to a great many people in the 60% bracket. Looking for it for free...Well, you may get what you pay for. I think that there is a high amount of value in a high volume, low overhead sort of tax avoidance operation. Right now, moving money overseas is expensive, and there is a high service fee. Reducing the up front costs that someone has to pay to get started is a market opportunity. As is producing accessible information about how to get started. While Unicorn may be correct in suggesting three or four volumes of tax law to get started properly, thats like suggesting Bach and Comer for someone who wants to get on the internet. When it was needed, there were far fewer people here. As to the obvious rejoinder of, 'as soon as its obvious, its illegal,' if enough people start to do it, theres a large lobby for keeping it legal. And if the overhead is low, all of those people have lots of money to spend keeping it legal and cheap. Adam Black Unicorn wrote: | On Thu, 9 May 1996, Robin Powell wrote: | | > >>>>> Black Unicorn <unicorn@schloss.li> writes: | > | > >> 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? | > | > Well, if such a list does exist, I would like to know about it. | > | > -Robin | > | | Again, in the absence of any credentials or recommendation, I can't see | how the moderators/originators/managers of such a list would disclose the | details of its publication. | | --- | My preferred and soon to be permanent e-mail address:unicorn@schloss.li | "In fact, had Bancroft not existed, potestas scientiae in usu est | Franklin might have had to invent him." in nihilum nil posse reverti | 00B9289C28DC0E55 E16D5378B81E1C96 - Finger for Current Key Information | Opp. Counsel: For all your expert testimony needs: jimbell@pacifier.com | -- "It is seldom that liberty of any kind is lost all at once." -Hume
participants (4)
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Adam Shostack -
Black Unicorn -
nobody＠replay.com -
Robin Powell