Hi,
A friend of mine heard about this and it's probably old news, but I'd still like to know has any of you ever done this or you heard about this too.
Remember I am talking about example for Europeans. Anyway here it goes:
You open a company in the US - a company that only exists on paper that is. I heard it costs $1800 to open and then $700 every year.
Then you open a personal bank account in some foreign country. Say you live in Germany you go to Austira and open a personal bank account there.
Now, this US company of yours sends your local company an invoice for "some service" they did for you which matches the money you have in your local company. Great. Now you wire your money to that US company and show it as an expense (you have an invoice for that as a proof). Now US company wires the received "payment" to that personal account in Austria and shows it as expense AGAIN
Now all you do is go to Austria personaly, withdraw the money and it's all yours. You pay no taxes to Austrians because you are a German citizen.
You avoid taxes and get the money directly in your pocket.
IS THAT POSSIBLE?? Anyone ever done stuff like that?
-- McSpike --