Own company buying another company

[12345]

Hi Im asking on behalf of my friend

He owns 100% of polish company and 100% of USA Delaware LLC

Now he is looking to sell all shares of his polish company to the USA LLC company

He says it's risky to make such transaction, since authorities can question this as "fake transaction" and deem it as invalid

Is it really the case? He is looking to hire a nominee director to bypass it, does it make any sense ?

 

[Martin Everson]

You can off course do this in theory. The issue is whether it is being‌ done to obtain a tax benefit with an artificial action i.e moving ownership from high‍ to low jurisdiction while having both common ownership of both companies. He will fall foul⁠ of Poland's GAAR as its clearly profit shifting and an abusive practice to obtain a⁤ tax advantage.

In any case such a deal would have to be done at arms⁣ length. Meaning no common ownership whatsoever. However GAAR still allows the taxman to claim abuse⁢ if they spot any sort of connection i.e you used to be director or you︀ established the LLC in the past but appointed nominee directors etc.

Your friend is best︁ to get professional tax advice and think wisely. This is 2023 not 1983.

 

[ShillGates]

your avatar has not shaved its beard since 1983 🙂