Re: Why I Pay Too Much in Taxes

Black Unicorn wrote:
>Looks like someone paying offshore for Mr. May to me.  Again, 30%
>withholding requirement unless you intend to hide it. 

You just don't get it, do you. The offshore payment is for licensing
(or computer operations, consulting advice, buying worthless software,
investment in penny stocks, use your imagination...) It has NOTHING
to do with Mr.May. Those payments are something that the (drunk) CEO
decided on and he is completely responsible for it. Why he ordered
all those expensive services before he left on permanent vacation is
anybody's guess.

>The only way to avoid this is to conceal Mr. May's involvement.

Right!

>Also note that payments to an account for which Mr. May is the
>beneficiary can trigger realization in several circumstances.

The beneficiary is a trustee that doesn't ask too many questions.
There are plenty of those available.

>You also fail to mention the reporting requirements for U.S. citizens
>holding offshore assets of significant size.

"Laws are for people who can't think for themselves."

>Either it is a tax avoidance plan, or it is a tax evasion plan.
>Which is it?

A little of both, to confuse the enemy.

>Practically speaking I think you have merely altered the plan to
>adjust for my comments and are stuck between both fact scenarios now.

Nothing altered. I just didn't explain it in too much detail before.
There are still details left out (like how to find a cooperative CEO,
offshore bank and trustee). This is an extremely cheep setup. For most
high bracket wage earners it could break even in the first month or two.
Once the structure is in place it doesn't cost any more. To stop paying
taxes completely you would need to lower your taxable profile slowly.
If you already have enough money in the bank for your living style, you
could take out a significantly smaller salary. If the tax man asks what
happened to your high income, you explain that you lost your old job and
had to accept a less attractive offer. That can happen to anybody.

>I would think you'd advertize it here if you had anything worth selling

The problem with selling services like this is that any buyer with half
a brain worries that it is a sting operation. Therefore the customers
are mostly friends and acquaintances.

>Off the shelf companies and trusts have their uses but anyone proposing
>to sell a standard tax avoidance/evasion setup off the shelf should
>trigger major alarm bells.

I agree completely. This is not an advertisement, just a chat on the
theory of tax planning in the modern day of worldwide strong encryption.
Today it is easier to communicate with an offshore trustee than it has
ever been before. Just keep your pass phrase away from the tax man and
you'll be fine.

X

Wage earners - people who are the subjects of W-2 forms - are the class of
individuals who can't benefit from offshore maneuvers.

I believe the entry costs for a reliable offshore structure from a 
reliable vendor - ie, one who keeps up with court cases and the Code of 
Federal Regulations on a daily basis - is $50-100k.  Ok for guys who own 
a Dart Inmdustries, but not the unwashed masses.

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                          SANDY SANDFORT
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C'punks,

On Sat, 11 May 1996, Alan Horowitz wrote:

> Wage earners - people who are the subjects of W-2 forms - are the class of
> individuals who can't benefit from offshore maneuvers.

Not true.  While they may not be able to use offshore techniques
for their wage-slave jobs (though even that isn't always so), 
such techniques can be used to put money beyond the reach of 
their governments, to invest after-tax dollars and to engage in
economic activities which might run afoul of home country laws
and regulations.


 S a n d y

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