If I set up an offshore company for the purpose of trading stock and investing, can I save money on capital gains tax? I am considering creating an offshore company in a country with no capital gains tax. I could then distribute money to shareholders (myself) as dividends thus lowering my taxes. Has anyone done this? If so, what country should I incorporate in and what is the cost?
2007-07-22 08:19:19 · 2 answers · asked by SF 1 in Business & Finance ➔ Taxes ➔ Other - Taxes
And why would I try and help you lower your tax burden, at the expense of mine? If you pay less that means I have to end up paying more.
2007-07-25 09:47:40 · answer #1 · answered by Anonymous · 0⤊ 1⤋
Nope. You'll still be liable for US taxes on the income. There's no tax benefit from this unless you're trying to improperly evade taxes. The IRS has ways of estimating your income from such a venture and that will usually result in much higher taxes and more grief for you proving your position with them.
2007-07-22 16:14:00 · answer #2 · answered by Bostonian In MO 7 · 1⤊ 0⤋