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Originally Posted by Sid70
Correct.... but the income on the US company without transferring $$ to a personal account is not creating any personal income, am I wrong? And ATM withdrawals from a corporate card, or payments are just company's money.
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Quote:
Originally Posted by holograph
well if you take money from a business card it should be justifiable as a business expense, because just like you said, it's company's finances.
if you take it for personal reasons and if by some chance you get audited by IRS, they surely will ask about those transactions, you may get a fine or will be asked to pay difference in taxes, maybe they will report you to your country's tax agency, who knows..
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Quote:
Originally Posted by Sid70
I see. Back to the same crap. Unless it's stationary, water, daily lunch and water expenses, internet, phones and gas, office rental in another country ( ?) that would be doable.
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You did not REALLY think it would be soo easy as to setup a company, receive funds and then withdraw them via an ATM card and thereby dodge taxes and use the money privately???
Most countries blocked that looong time ago! Most tax authorities nowadays are in contact with Visa and Mastercard to get the names on foreign card which regularly withdraw cash inside the country.
And as holograph said, it needs to be
justifiable expenses
Generally you can assume that if you had a cost, to be able to make an income, then that cost is justifiable and deductible from your earnings.
Say you have an employee, or you buy a new computer mouse or such. That would be justifiable expenses.
For a US based company, to have expenses in a foreign country, you need to show WHY there are expenses in that country. Is it because you generate lots of sales from that country? If not, it will be very hard to justify such expenses. Or else, in an audit, they will deny all those expenses and give you penalties for even trying to bring them up.