From: Black Unicorn <unicorn@schloss.li>
Date: Thu, 9 May 1996 14:12:25 +0800
To: Anonymous <nobody@replay.com>
Subject: Re: Why I Pay Too Much in Taxes
In-Reply-To: <199605080632.IAA24692@utopia.hacktic.nl>
Message-ID: <Pine.SUN.3.93.960508185124.29348B-100000@polaris.mindport.net>
MIME-Version: 1.0
Content-Type: text/plain


On Wed, 8 May 1996, Anonymous wrote:

> 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.

Uh, so the whole of this plan relies on.

1)  The secrecy of the company.
2)  The secrecy of every 'employee' in the country
3)  Mr. May's ability to conceal his domestic spending.

> You can hide your income by putting it in another jurisdiction.

Do you understand how naive this sounds?  Do you understand the extent to
which you are over simplifying the situation?
 
> >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.

The plot thickens.
Do you know that there is imposed on U.S. citizens (corporations included)
a withholding tax for payments to foreign entities subject to U.S.
taxation?

In this case the people paying the offshore company for Mr. May's services
are also subject to reporting requirements and a 30% withholding tax for
which they will be held liable.

This adds the requirement that the individuals or corporations receiving
Mr. May's service be involved in this conspiracy.  If they could have
been, why do you need the offshore connection?  Why not just conspire with
them to pay Mr. May in cash and not report it?

> >> 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.

Puhlease.

Continue your participation in such a plan.  I will send you cigs.

> Mr.X.

---
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"In fact, had Bancroft not existed,       potestas scientiae in usu est
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