Taxes are killing me...

Discussion in 'Legal Issues' started by S2X, Dec 8, 2005.

  1. DirtyDog

    DirtyDog Well-Known Member

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    #21
    You make enough money to be in a tax bracket that saw a tax decrease? Damn you must make a buttload of money! Oh - we have the largest deficit of all time under the current administration. Have any idea who's going to end up paying for that?
     
    DirtyDog, Dec 9, 2005 IP
  2. uca

    uca Well-Known Member

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    #22
    GWORLD

    Actually I remember I did, maybe 2 or 3 years ago, and it didn't look good, as far as taxes are concerned. Unless it has changed substantially, but I wouldn't think so, I wouldn't move to Canada because of that.

    Are you an expert enough to show us some interesting points?
    I'm not talking about politics, I mean taxes, such as small company income taxes.

    About the social programs, I prefer the US way, which isn't perfect, but from what I hear, it works better than in other places.

    Do you know why drugs are so cheap in Canada and expensive in the US?
    Because the US foot the bill and Canada and other countries reap the benefits. Most drugs would not even exist if the US weren't paying so much for them. Sales to Canada and other countries make just marginal profits that would never justify the enormous research costs.

    But I don't want to insult Canada at all, just the way it's taxed makes me feel you need to move on.
     
    uca, Dec 9, 2005 IP
  3. itsme

    itsme Well-Known Member

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    #23
    Ok, I didn't read anything past the 4th post so forgive me if I am repeating someone else or totally off topic.

    I am also a Canadian citizen, and hate taxes. I agree that it's a nice country but the only way you're gonna get around the tax issue is:

    1. Move to Europe and pay tax as a non-resident.
    2. Register an American Corp. and pay yourself through dividends and claim it as capital gains.

    I am no expert but I know that this will give you a chance at saving a bit of cash.

    I myself am living in Europe and I will be claiming as a non-resident this year since it's been a very long long time since I was there... but be prepared to learn a new language! :(

    OR... just try to stash it into a Swiss account and hope you don't get caught. But you probably will.
     
    itsme, Dec 9, 2005 IP
  4. uca

    uca Well-Known Member

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    #24
    Unless you do something really bad, give yourself up or handle it really badly, I can't see how that could happen. :)
     
    uca, Dec 9, 2005 IP
  5. itsme

    itsme Well-Known Member

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    #25
    This is usually what happens. :)
     
    itsme, Dec 9, 2005 IP
  6. Sham

    Sham Peon

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    #26
    I don't know if this has been mentioned before, but anyone who is interested in living in Monaco... you don't pay income tax over there...
     
    Sham, Dec 9, 2005 IP
  7. uca

    uca Well-Known Member

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    #27
    There are many places where you don't pay income tax, even in the US. Texas, Florida, New Hampshire to name a few. But it's not always that simple. Usually, unless you're earning millions, the best and reasonable option is to use a low tax country with double tax agreements with the country of residence. Even better if you can go corporate and find a country where business taxes are low and simple. The UK is getting worse thanks to Gordon Brown, but it was a great option and maybe it still is. Let's see who wins the next elections.

    Monaco isn't the cheapest option unless you're filthy rich.:)
     
    uca, Dec 10, 2005 IP
  8. hulo

    hulo Peon

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    #28

    I was wondering about this

    There has to be some sort of plug on it because it seems like such a gaping loophole...
     
    hulo, Dec 12, 2005 IP
  9. itsme

    itsme Well-Known Member

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    #29
    The tax is almost non existant there, but there are a few probmlems with that plan:

    - in order to become a citizen through naturalization, you need to live there for 4 years.
    - in order for you to be granted a residency visa (to become a citizen) you need to prove your ability to sustain yourself, and at a minimum $400,000 per year required by the gov. it's not so easy... or was it $400,000 cash +$100,000 per year??
    - there are rummors that Monaco will soon become a part of France (but I doubt it)

    I'd say for most Canadians, the US Corp. is the best bet since Capital Gains are taxed much lower in Canada... that includes profit from property rentals and sales.
     
    itsme, Dec 13, 2005 IP
  10. RectangleMan

    RectangleMan Notable Member

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    #30
    I have started to think about an off-shore corporation. I am US citizen and from what I am reading an off-shore would cost me about $3k a year in administration. Maybe even less. There are risks of course but if I can save $10k a year or more it could be worth it. All my income is now on the web. Why would I need to pay US taxes?
     
    RectangleMan, Dec 13, 2005 IP
  11. gworld

    gworld Prominent Member

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    #31
    Because you are US citizen and as such, your incomes are taxed based on your world wide income. You can hide your incomes but it is against IRS rules and if they found out about it then you have to deal with criminal prosecution which is not very nice to say the least. Even if you move from US, as long as you are US citizen, you have to pay tax.

    USA acts as tax heaven to other countries but has no mercy for it's own citizens. ;)
     
    gworld, Dec 13, 2005 IP
  12. gworld

    gworld Prominent Member

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    #32
    According to revenue Canada rules ( I think it is from mid-1960), any corporation that is controlled by a Canadians (ownership or management) is deemed to be Canadian corporation independent of where it is registered.

    If you are going to plan your taxes, you must do it properly or you can get in to a lot of troubles.

    By the way, Swiss bank accounts are not safe at all anymore. All they need from another country is a court order and they will give all the information. Luxembourg is much better choice. ;)
     
    gworld, Dec 13, 2005 IP
  13. jamjv

    jamjv Peon

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    #33
    Its true, one of my partners just moved to Canada from America and setup a bank account in Belize. Now only the money he brings to Canada gets taxed, if he lived in the US he couldn't do this legaly.
     
    jamjv, Dec 13, 2005 IP
  14. Clickable

    Clickable Peon

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    #34
    Becareful about doing that. Chances are you will stilll be considered a resident in Canada and will still be liable for taxes.

    If you get a hold of a CA or tax consultant, you can legally minimize your taxes.
     
    Clickable, Dec 13, 2005 IP
  15. cornelius

    cornelius Peon

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    #35
    i heard some countries like UAE have no taxes :eek: :eek:
     
    cornelius, Dec 13, 2005 IP
  16. uca

    uca Well-Known Member

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    #36
    For the first time, I might agree with gworld, although not entirely, I don't agree with the last sentence as it's only derogatory and a sign of envy.

    Anyway, I am going to live for a substantial amount of time in the US after completing a lengthy immigration procedure, but I am not planning on becoming a US citizen although I could.

    The reason why is because there are too many tax implications with the IRS for just being a US citizen.

    Unfortunately with such a strong economy, as opposed to the poorer countries to the south and the north, many become rich easily and try to avoid being taxed, although they aren't that heavy after all, but that's human nature I suppose...:)
     
    uca, Dec 14, 2005 IP
  17. gworld

    gworld Prominent Member

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    #37
    Do you even know what you are talking about or you just make it up as you go?

    1- In order to become an American citizen, you have to wait 3 year after the green card and you mentioned before that you just got it, so how can you become an American citizen?

    2- It doesn't matter if you are American citizen or not, as soon as you stay more than 180 days/ year in USA, you are deemed taxable by IRS.

    I am not sure if you know this or not, but kissing ass is not a requirement for green card or citizenship. ;)
     
    gworld, Dec 14, 2005 IP
  18. cornelius

    cornelius Peon

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    #38
    why do u want to be citizen of such a backwards country?
     
    cornelius, Dec 14, 2005 IP
    itsme likes this.
  19. rickbender1940

    rickbender1940 Guest

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    #39
    Check out http://www.blurbomat.com/archives/2005/12/12/denied_again to see why any money you save (and then some) might end up going to pay health care premiums. $2500 deductible??? Oh yeah!

    Frankly, being self-employed is much scarier when breaking a leg can push a person into bankruptcy
     
    rickbender1940, Dec 14, 2005 IP
  20. uca

    uca Well-Known Member

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    #40
    I don't think I mentioned that I already have a green card, as I'll apply as soon as I get married. According to my immigration lawyer I have to wait for 3 years, right, but unless there are very substantial benefits and I permanently move to the US, that is staying there for most of the year in the future, I won't apply and that's because of the tax implications.
    Also, I already have 3 different citizenships and I don't need another one.
    Just to piss gworld off, my countries are all active in Iraq, and that makes me feel so proud...;)

    All I need to do is to obtain permission to work in the US as a foreign national and foreign resident.

    We'll see what my lawyers suggest but that's my plan for now.

    Of course, I am not making anything up, that wouldn't be me, so piss off!:mad:
     
    uca, Dec 14, 2005 IP