This is something i have seen in Estonia, Bulgaria, Montenegro, Hong Kong. It is something that can be found central & east Europe. I don't know about the rest of the world.
Here is how it works, first, a formation company attracts with cheap prices. Then, they suggest accounting services without being very precise. Then they ask you to output all your accounting to their system. Then, they charge you depending on the number of transactions and it ends up with very high accounting billing.
I have calculated that one accountant from Estonia was twice more expensive than in the UK and here i talk only about accounting because then there is VAT and EU VAT moss. Also, they may take advantage of your ignorance about the local legislation and make you believe all sorts of things. I have heard a guy from Hong Kong saying that the tax authority from Hong Kong could ask you where you declared your dividend which is totally B_ _ _ _ _ _ _ _
They tell you that if you don't follow their tax advice you will be prosecuted. Interestingly enough, it is exactly the opposite that happens in reality.
fyi, a tax authority only takes care of what's happen in her own jurisdiction.
Many accounting companies are extremely vague on purpose on charging money for accounting. Then, it acts like a mafia & you have to obey. In some jurisdictions there are less practices like that. I have never seen this scam in Cyprus or in Belize which is surprising.
Here is how it works, first, a formation company attracts with cheap prices. Then, they suggest accounting services without being very precise. Then they ask you to output all your accounting to their system. Then, they charge you depending on the number of transactions and it ends up with very high accounting billing.
I have calculated that one accountant from Estonia was twice more expensive than in the UK and here i talk only about accounting because then there is VAT and EU VAT moss. Also, they may take advantage of your ignorance about the local legislation and make you believe all sorts of things. I have heard a guy from Hong Kong saying that the tax authority from Hong Kong could ask you where you declared your dividend which is totally B_ _ _ _ _ _ _ _
They tell you that if you don't follow their tax advice you will be prosecuted. Interestingly enough, it is exactly the opposite that happens in reality.
fyi, a tax authority only takes care of what's happen in her own jurisdiction.
Many accounting companies are extremely vague on purpose on charging money for accounting. Then, it acts like a mafia & you have to obey. In some jurisdictions there are less practices like that. I have never seen this scam in Cyprus or in Belize which is surprising.
