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Now that it's over.... (pg. 8)
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| Krypton |
| quote: | Originally posted by The17sss
Dammit! I hate it when I agree with Krypton :p |
The only reason I am a registered Republican is taxes, small government, low expenditures. They've since abandoned that platform. |
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| jerZ07002 |
| quote: | Originally posted by The17sss
HA! Please... you're in over your head on this one buddy. Don't lecture me on my lack of knowledge on the Malaysian business system when I operate there and you don't. If you peeled back the first layer of the onion, you'd know about things that apply to our company there, such as the 1 million (Malaysian) dollar transfer of technology grant we recently got, which we do not have to pay back, and we can designate that money however we wish within the company. You would also know there is something you can apply for called "Bionexus status" as a company if you produce and/or are involved in the research and development of environmentally clean/green/sound/ products... which gives you 5 years worth of tax free income as a business.
Siphon was a poor choice of words though, you're right about that.
Edit: We operate abroad in that location because for what we do, and who we're connected with, that's where the business happens to be.
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you're right, i don't know anything about malaysian business laws, but you were implying that you were using malaysia to hide income, not that you had an actual business in malaysia. Furthermore, i'm not a malaysia business expert, only an international tax attorney. I do international tax planning for a living, so nothing you say about taxes is over my head.
Since now you're saying you have a business reason to operate abroad (which isn't what you were implying before), your foreign corporation (if you have a foreign corporation - i don't remember if you said you do) may be able to defer taxes if it meets certain rules (generally that the income isn't passive and it is earned in a business conducted with 3rd parties). I have no idea how the tech grant would be characterized, but the reason my standard hourly bill rate is over $400 is to answer those questions. You still need to declare it, and as soon as the money comes back into the US it is taxable. FYI, obviously i don't know how much you pay in taxes, but i think the $40K in taxes I paid is pretty substantial, and i'm not bitching about it.
again - this isn't legal advice (disclaimer bs), and no attorney client relationship is formed. (GHB can relate to this). |
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| Lebezniatnikov |
| Nothing is more sickening than when people wrap their own greed in a flag. |
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| LazFX |
| all of this sounds fishy.. anyone know anyone that works for the IRS?? ;) |
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| jerZ07002 |
| quote: | Originally posted by LazFX
all of this sounds fishy.. anyone know anyone that works for the IRS?? ;) |
It does. He's clearly admitted he just doesn't want to pay taxes. I shouldn't be freely giving him this information, but he should know that if he doesn't file certain forms (5471) the consequences are as follows:
1) the period of limitation for which the service may make adjustments to his income never begins (i.e., they can audit your income for that unreported foreign income until you die, and it would be subject to interest),
2) criminal penalties could apply (i.e., jail time), and
3) civil penalties will certainly apply, which consists of an initial $1,000 penalty for failing to file, and after 90 days of when the form is required to be filed an additional $1,000 penalty would be assessed every 30 days until the penalty reaches $24,000.
There are other fraud (which would be likely here) and accuracy related penalties that could apply if his income was substantially understated and the resulting taxes are significantly below the amount which would have been required had he not been a criminal. |
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| jerZ07002 |
| quote: | Originally posted by The17sss
speaking of closing loopholes, I was in Bermuda the other day... the guy who's house I was at is Richard Pearman who's father was instrumental in making Bermuda a tax haven. He was a Rhode scholar at Oxford and is an international tax attorney with pretty much all of the fortune 500 companies as clients, and he was telling me how Obama is planning on closing the tax loopholes (may take a few years to do it) that so many of those companies enjoy and it scares the out of them. I asked why he's doing it and he said, "because he's a democrat and that's what they do." |
so insightful. It's amazing that you name drop someone nobody knows (and who helped deplete treasuries around the world), throw in a rhode's scholar and an oxford reference, and think we are supposed to care that his irrelevant son said, "because he's a democrat and that's what they do." |
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| Lebezniatnikov |
| quote: | Originally posted by jerZ07002
so insightful. It's amazing that you name drop someone nobody knows (and who helped deplete treasuries around the world), throw in a rhode's scholar and an oxford reference, and think we are supposed to care that his irrelevant son said, "because he's a democrat and that's what they do." |
Not to mention the fact that he's "scared" of closing loopholes that allow rich individuals to defraud the government in ways the middle class has no ability to do.
This really is a sickening thread. |
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| jerZ07002 |
| quote: | Originally posted by Lebezniatnikov
Not to mention the fact that he's "scared" of closing loopholes that allow rich individuals to defraud the government in ways the middle class has no ability to do.
This really is a sickening thread. |
to me this is the same as a corporate executive committing securities fraud (i.e., insider trading, churning, etc...), or someone committing extortion. |
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| The17sss |
| quote: | Originally posted by jerZ07002
you're right, i don't know anything about malaysian business laws, but you were implying that you were using malaysia to hide income, not that you had an actual business in malaysia. Furthermore, i'm not a malaysia business expert, only an international tax attorney. I do international tax planning for a living, so nothing you say about taxes is over my head.
Since now you're saying you have a business reason to operate abroad (which isn't what you were implying before), your foreign corporation (if you have a foreign corporation - i don't remember if you said you do) may be able to defer taxes if it meets certain rules (generally that the income isn't passive and it is earned in a business conducted with 3rd parties). I have no idea how the tech grant would be characterized, but the reason my standard hourly bill rate is over $400 is to answer those questions. You still need to declare it, and as soon as the money comes back into the US it is taxable. FYI, obviously i don't know how much you pay in taxes, but i think the $40K in taxes I paid is pretty substantial, and i'm not bitching about it.
again - this isn't legal advice (disclaimer bs), and no attorney client relationship is formed. (GHB can relate to this). |
I didn't imply you were in over your head on tax law, I was saying that you were about business operations in Malaysia. You assumed I was "using" malaysia as a tax haven, which I wasn't... me using the word "siphon" probably didn't help, but you can ask Krypton; he and I have talked extensively about my legitimate business operations there for a while now. A Malaysian based company basically absorbed our U.S. company, and we operate there NOT as a foreign corporation, and do so legitimately. We applied for and got the transfer of technology grant through their government to make the knowledge/resources that originated through our U.S. based company officially the legal property of Malaysia. We also applied for the BioNexus status because of what we're involved in, which I explained earlier gives 5 years of tax free profits, and got that. As long as I keep the money earned there over there, there's no reason for me to pay taxes on it. Like I said, I can wire transfer money from there to buy whatever I want over here legitimately. |
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| The17sss |
| quote: | Originally posted by jerZ07002
so insightful. It's amazing that you name drop someone nobody knows (and who helped deplete treasuries around the world), throw in a rhode's scholar and an oxford reference, and think we are supposed to care that his irrelevant son said, "because he's a democrat and that's what they do." |
No no, the irrelevant person in that statement was his father, who's been dead a long time. The guy I spoke with (Pearman) is the oxford educated rhode scholar who is an internationl tax attorney. The guy is 75 years old and has amassed a fortune you could only dream about by practing what you practice, only for about 50 years longer. Sorry I didn't type out a transcript of our entire conversation for you to study... I was just throwing out a highlight he said that made me laugh.
http://www.conyerslaw.com/jurisdiction.cfm?Page=1 |
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| The17sss |
| quote: | Originally posted by Lebezniatnikov
Not to mention the fact that he's "scared" of closing loopholes that allow rich individuals to defraud the government in ways the middle class has no ability to do.
This really is a sickening thread. |
this must be your morally reprehensible finger pointer statement of the day. kudos. your idealism is commendable but if you can learn to accept that life isn't fair for everyone, and won't be, you might not be so angry all the time |
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| The17sss |
| quote: | Originally posted by jerZ07002
to me this is the same as a corporate executive committing securities fraud (i.e., insider trading, churning, etc...), or someone committing extortion. |
why? because a company operates in a country that is a tax haven and legally uses that to their advantage? |
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