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Overtaxed Aussie

Asked in Offshore (General) for Seychelles

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I own a design firm in Australia - All my clients are Australian based and they just simply would not deal with a cyprus/panama company. Basically I make around 250k a year and see a very large chunk of this go to the government to be squandered on free flights for politicians and dole bludgers. I am currently setting up an internet site selling bits and pieces. I plan to start a bank account in Hong Kong (under a Seychelles based IBC ) I have looked at banks over there and found one that I like (1% visa fee on atm withdrawals as well as reasonable priced money transfers to china (my supplier)) I have been reading the ATO's blog that they monitor the use of ATM cards aswell as EVERY wire transfer going out (Its hard to believe as they would need 500000 employees) Basically my question is this. Is there any way to lessen my tax burden in Australia with an offshore solution. Say I buy an IBC in Seychelles is there anything stopping me from opening a bank account then shut the IBC down saving me 500-1000 dollars a year? I have looked at dumping money into super however this still has kevin rudds finger in the pie at 15% on earnings each and every year (You cannot get ahead that way.)
 
Australia Seychelles Tax Offshore Internet Hong Kong Employees
 
Posted by Overtaxed Aussie on Jan 17, 2010 at 17:12
 

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You do not need 500,000 employees to monitor the transfers going out to Seychelles companies with Hong Kong bank accounts. One server and one employee would suffice, just in case the banks would not report the suspicious wires.
 
Posted by Lowtax User on Jan 17, 2010 at 18:24
 

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Oh I forgot to ask aswell - HSBC's ATM cards can they be tracked to me via a corporate structure I know they put your name on them so I was thinking it might be on the electronic swipe aswell. Is there such a thing as "borrowing" a IBC just to open a bank account with
 
Posted by Lowtax User on Jan 17, 2010 at 18:31
 

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I do see your point about austrac monitoring this however I didn't plan to draw my Australian income into this - Rather just my international. There wont be any monitoring as all funds will run through a pay gate thats offshore as well. I do see that Switzerland are back flipping over there previous position and using there courts to get out of there tax exchange agreements they signed under pressure from Obama. Tho I would be reluctant to put too much in there as once bitten twice shy. Its going to be an interesting 6 months ahead of us in any case to see the end result. The way I look at it is there have been tax havens since Roman times. I cant see the OECD countries changing anything to prop up there own failing regimes.
 
Posted by Lowtax User on Jan 18, 2010 at 12:15
 

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Whether your name is on the ATM card or not is irrelevant and a corporate structure makes almost no difference. As long as the bank knows who you are, it’s like trying to protect your hind quarters with a fig leaf. Cash withdrawals in excess of 50 000 from one account and within 12 consecutive months trigger automatic cross-border inquiries. Aside from this, there are those built-in cameras in the ATMs, linked to servers with huge memory. You may of course get around that without a Halloween costume, but why do you need that hard cash anyway? What you need is a VISA debit card, bundled with some IBC that comes complete with a beneficial owner. You may not even need to “lease” the IBC. What you pay is a commission on the volume of the card. Alternatively, you may visit the local Middle Eastern/North African/South Asian community and ask for the Hawala brokers. They are honorable, reliable and move huge amounts of money via informal transfer systems. Don’t get taken in by all the hoopla, coming from Switzerland. There is a sea change afoot there and the Swiss are just playing for time. The pressure gives no hint of letting up and the clients are leaving in droves.
 
Posted by Lowtax User on Jan 18, 2010 at 22:38
 

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Thanks software talent - I think your spot on with this one. Giving yourself up as the beneficial owner is risky policy's can change in an instant what was once safe the next day can be a dragnet. To make a 100% anonymous account seems to require a new identity. Dominica it seems is very costly to "migrate" to Those african countries are risky (probably stolen passports) What about those hutt river passports - would a major bank accept them? Maybey I should ask prince Lenord where he does his banking :) Anyone have a bulletproof scheme.
 
Posted by Lowtax User on Jan 19, 2010 at 11:19
 

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Overtaxed Aussie. Using a Seychelles IBC to trade through gives you more than just access to a corporate bank account. Using it just to set up the account and then letting the IBC die (or just "borrowing" one) would not be a good idea. Many banks will ask for a Certificate of Good Standing each year for the IBC to show that it still exists. If you did let it die and the bank found out it would freeze the account and all money in it. You would then have to pay to restore the company to regain access to the account. John www.offshoreformations.com
 
Posted by Lowtax User on Jul 06, 2010 at 11:39
 

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try looking at q wealth website for answers or sovereign man a wealth of knowledge and advice there but no i do not think you could or should shut down your ibc in fact you could sell your imports from China to it and then sell it on to your australian company at can inflated price thus keeping the majority of your profits offshore
 
Posted by Lowtax User on Jul 09, 2010 at 13:36
 

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What bits and pieces are you actually selling? You can not close a company that holds the bank account. a. You run the risk the bank finds out and freezes the account b) you would have no legal right to draw money from that bank account, since the company is non existent, you would have no more authorisation. I also depends how much you are personally involved in the business in Australia. Once solution could be to negotiate supply contract with your Chinese manufacturers via an IBC, this IBC is introducer of your Australian business and negotiates a commission with the supplier. China invoices goods to Australia, China pays commission to the IBC. info(at)eu-hub.com Eu-Hub Malta Limited skype: euhubmalta www.eu-hub.com
 
Posted by Lowtax User on Jul 10, 2010 at 18:49
 

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contact www.sfm-offshore.com Resident Agent in Seychelles
 
Posted by Lowtax User on Jul 14, 2010 at 10:10
 

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Hi Overtaxed Aussie, I can't help much with the offshore tax reduction plans, being an overtaxed Aussie myself, but I might be able to help you get the most out of your super. Do you have a SMSF (Self Managed Super Fund)? If you do you can at least make the most of it, firstly you can contribute pre-tax and only pay a flat 15% tax - whilst you are still funding dole bludgers at least its a low rate, the same as Hong Kong income tax. Also with a SMSF you can choose where you place your funds, may I suggest the asset class that has outperformed all other asset classes over the last 10yrs - GOLD, and of course you only pay tax on your profits when you sell, and there are options to reduce or eliminate such taxes if you hold the gold in the fund until you retire and need to draw down the funds. If you want to know how to purchase gold or other precious metals for your SMSF please contact us at ABC Bullion, see our site: http://www.ausbullion.com.au/bullion.html
 
Posted by Lowtax User on Aug 04, 2010 at 12:13
 

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So where did you end up hosting your site - country only. Seychelles registration & hosting? Or a normal dot com?
 
Posted by Lowtax User on Oct 06, 2010 at 21:17
 

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Overtaxed Aussie, If you are selling online. The Aussie Authority should not able to tax you if your company is setup up in offshore (Seychelles, Dubai, Singapore, HK, Labuan, Brunei etc.) The issue is when you want to "frank" dividend back to Aust. Aust apply tax imputation system (one of the few countries that do that). Subject to any double taxation agreements, Australian tax is imposed on assessable income. A resident of Australia is taxed on worldwide income for the period of residency, whilst non-residents are taxed on Australian sourced income only. Therefore, if you pay 0% tax in offshore, you will have to pay the full corporate rate (30%) or the marginal rate (as high as 46.5%) depend on whether it is franked to a company or individual. If you transfer the money through ATM card, Credit Card or Hawala broker (no many people know about them, Software talent must be an Indian), then you will not be able to purchase real estate etc because it will trigger the Tax Authority attention on the source of income. There are banks that can issue ATM and Credit under offshore company name. Therefore it makes it hard to find the real identity of the beneficiary. Investing (real estate) in other countries is an option. voon@hansworldwide.com
 
Posted by Lowtax User on Oct 12, 2010 at 10:08
 

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To set up an account in Hong Kong mostly requires a Hong Kong company. It quicker and much easier than another foreign offshore company. Your clients can pay you in your home country and can deposit those funds directly into your Hong Kong company account. You would not pay tax in Hong Kong as well as your home country. WHY? Because your business account will only show perhaps 1000 sales per annum or negative sales.
 
Posted by Lowtax User on Oct 19, 2010 at 00:50
 

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EI MEIIT GOOD DAY MATE,SO AUSTRALIAN PEOPLE SPEAK,VERY DIRECT,SO THEY TAX YOU VERY VERY DIRECT,AAHHHHHHHHH(DO YOU REMENBER DESPERATE CARTOONS FROM SCULTZ? dO NOT PANIC.AUSTRLAIAN TAX OFFICE SAY IT IS FOR THE COMMON GOOOD,SO HITLER SAY ABOUT VITAL SPACE,LENIN ABOUT THE KAPITALISTS AND SO ON... THE REAL IT IS THEY WANT YOUR MONEY. iF THEY WERE FOR THE COMMN GOOD YOU WOULD SEE JOBLESS PEOPLE LOOK AROUND WITH FERRARI BUT IT IS NOT.iT SI FOOR THE GOOD OF POLITICIAN AND SO ON.MORAL YOU WORK 50 FOR THE POLITICIAN 50 FOR YOU.DO NOT TRY TO USE CARD AND SO ON BECAUSE THE AUSTRAC SYSTEM WILL SEE YOU.LOOK FOR A GOOD COUNTRY AND GET PROFESSIONALS ADVICE,NOT IN AUSTRALIA. LOOK IF YOU WANT AT OCRA.COM ALL THE BEST LORD GREENVILLE
 
Posted by Lowtax User on Oct 22, 2010 at 18:18
 

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I think after readding this australian authorities will ask service for you ip address and track You :D You should be thinking about tax avoidance rather than tax evasion and yes tere's few ways.
 
Posted by Lowtax User on Jun 10, 2011 at 12:56
 

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Overtaxed Aussie, you may be interested in the material published by Trident Press: http://www.tridentpress.com.au/ The material is written from an Australian perspective. I've purchased some materials from them in the past and found them to be quite informative.
 
Posted by Lowtax User on Jun 11, 2011 at 10:08
 

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I heard that Philippines accepts Retirees who are over 35yrs old which if you are, maybe you can check it out. For US$10k lodged with the Central Bank of the Philippines, you be a migrant retiree and elect Philippines as your Tax residence which gives you a choice of a) 0% global taxation for 10 yrs b) 10% global tax for as long as you are tax resident. I do not have all the full details but it is worth exploring.
 
Posted by Lowtax User on Nov 19, 2012 at 18:31
 

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