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Pay Day Loans

Asked in Offshore (General) for Guernsey

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Hi there, I am looking for some advice. I am an Australian who lives in the U.K. Without getting to much into detail about the tax situation, what I would like to know is can I start a pay day loans business in Guernsey and lend to people in the U.K? This would prove beneficial in the long run for me to operate my company outside the U.K. I appreciate that I would be generating business in the U.K but as it would solely be based online does that mean that the company would get taxed at the Guernsey rates. Conversely, could I just lend my other company in the U.K money at a high rate so it only breaks even and therefore it would be the Guernsey company that makes the profit. Any help or pointing in the right direction would be helpful. Regards, Neil Spence
 
Guernsey Business Tax Australia
 
Posted by Neil Spence on Feb 11, 2010 at 20:17
 

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I would say no matter where your company is located you would need a regulated entity for this type of business. alexander.hilton @ verdungroup.com
 
Posted by Lowtax User on Feb 15, 2010 at 18:30
 

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I agree and will be setting one up accordingly but am trying to find out whether in this business scenario it will be advantageous to do so via the offshore company and declare the company out of the U.K
 
Posted by Lowtax User on Feb 15, 2010 at 20:11
 

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Only baron von Münchhausen may escape from a swamp by pulling himself up by his own bootstraps. The rest of us need someone properly positioned to do the heavy lifting.
 
Posted by Lowtax User on Feb 16, 2010 at 19:16
 

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If you are a residents of a certain States and a resident also of the Other states where you are a National, I think; you need have to declare where you stayed longer than 183 days and you must pay tax in such State. Your income from such business would be withheld though you make it online business but you are consider as a resident in UK for you are staying longer. The most legal way, if you will be in an offshore business status, you must have to register your office in which State you are a national. And pay taxes there. Though you have escapes from paying taxes in UK, and Australia your earnings might be questioned by the Government authority about your sources of income. In fact, your business operation in UK is on On-shore status and the taxation laws say you must have to pay taxes in such States where you operated On-shore Business. My Advice, please operate business legally so you would not be compromise in the future. If you have question, Please contact me somosophils@aol.com /
 
Posted by Lowtax User on Feb 23, 2010 at 02:46
 

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Hi there, The Company in Guernsey would have to be FSA registered and will be subject to 10% taxation, then you would also be subject to UK taxation because control and management would be deemed from the UK, so it begs the question if it is better to be UK resident at 21% as the tax saving would not warrant the extra expenses unless of course you intend in making more than £300,000 pa profit. In which case you could look at a Guernsey Company owned by an international trust in another jurisdiction with nominee directors, but be ready to be charged like a wounded bull as these fees don't come cheap and you will be subject to being reported if UK Revenue put the squeeze on them as your identity will always be know. Regards
 
Posted by Lowtax User on Jun 09, 2010 at 10:27
 

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Having a company that needs to be regulated run by nominee director or shareholder will cost you an arm and a leg, since the charged people will take on responsibility. Responsibility means HIGH fees. info(at)eu-hub.com www.eu-hub.com Eu-Hub Malta Limited
 
Posted by Lowtax User on Jun 10, 2010 at 10:33
 

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I work within the Fiduciary industry in Guernsey. If you incorporate a Guernsey Company you will need to use a local Client Service Provider (CSP) who will act as the Registered Office and Agents of the Company. The fees depending on which CSP you find to do this would be in the region of £1000 - £2500 per year + administration time on top. You could be a Director but would need to provide copies of all minutes to the Registered Agents. As you would need to be regulated by the GFSC (Guernsey Financial Services Commission) and potentially the FSA your administration time charged would be huge!
 
Posted by Lowtax User on Jun 16, 2010 at 16:36
 

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G'day. The start point would be to look at your domestic country's (so UK in your case) CFC - Controlled Foregin Corproration rules. The other thing you are talking about is Transfer Pricing, I think. A UK tax lawyer specialising in these would be a good bet.
 
Posted by Lowtax User on Jul 01, 2010 at 06:35
 

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