Quote: (10-11-2013 10:59 AM)samsamsam Wrote:
Could you clarify the other than Americans part? Just that the US government taxes income globally? Or something else? Thanks!
Sure, if I leave Denmark and take up residency in another country and fill out some stuff online declaring this, then I am no longer eligble for tax in Denmark. So I could live all around the world and have my HK corp pay zero tax and not pay any income tax either in many cases (such as waiting to withdraw money for one year - at which point overseas income is tax free in Thailand).
But Americans get taxed even if they have no fixed address in the US and the IRS are some massive douches who will pursue you to the end of the world. Many banks won't even open accounts for americans anymore.
Worst comes out of it, in my country, tax evasion in a limited scope might give 4 years (2 years good behavior), in the US could probably be double or tripple.
I am not telling anyone to cheat in taxes, just for people to start understand the idea that taxes is no different than paying the mob boss protection money. If the taxman really wants to fuck you over he can, particularly the IRS. So one takes his precautions.
Some money in HK corp, some in a trust fund in the Seychelles, a whole bunch in small gold bars or coins in a bank vault.
So for me, I don't see the pros outweighing the cons for most americans. Of course, you can use a strawman director, but there always risks.
I am not an expert on american tax law though, so make your own conclusions based on what info is out there.