From: Anonymous User <nobody@c2.org>
Date: Sat, 11 May 1996 22:10:17 +0800
To: cypherpunks@toad.com
Subject: Re: Why I Pay Too Much in Taxes
Message-ID: <199605111005.DAA28141@infinity.c2.org>
MIME-Version: 1.0
Content-Type: text/plain


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Black Unicorn wrote:
>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.

Nobody pays offshore for Mr. May. They pay a domestic corporation for his
services. The corporation pays Mr. May a sufficient taxable salary for his
domestic expenses. Anything above that (i.e. money that Mr. May don't need
right now) is paid to the offshore entity as (for instance) deductible license
fees. The payment should probably go to a jurisdiction with a double taxation
agreement with the US, like Holland or Ireland. In Ireland it's easy to setup
a tax free corporation that sends all it's income to an offshore trust, where
the money stays until Mr. May needs them.

>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?

They just deal with the vice president of a typical domestic consulting
corporation. That the CEO of the company is an alcoholic living on a park
bench (for the ultra cheep setup) is nobody's business. He's on permanent
vacation for all they care.

>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.

Only one individual and he's too drunk to remember anything.

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

Thanks, but I can afford Cuban cigars. I'm selling setup's like the above for
a very nice fee. And this is the kiddie version of serious tax planning. After
all, Mr.May would still pay taxes on his domestic spending.

X

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