Hello. I want to start a website design and development business with bvi ibc. but I have a few questions in my mind. If my clients find out that my company is an offshore company and I don't pay taxes (I don't know if they will ask or not), will they stop doing business with me? Do you have such customers? and too much?
Will there be a problem?
- Thread starter Haapoma
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It depends on who your clients are. Larger corporations will have checks in place that prevent them from doing business with tax evaders and, even for smaller businesses, it can raise questions if they make payments to an offshore company.
It's not impossible, but you're introducing unnecessary headache. Let's also keep in mind that it's 2020, going on 2021, and this type of tax evasion is at high risk of backfiring, especially if you're resident in a wealthy and developed country.
It's not impossible, but you're introducing unnecessary headache. Let's also keep in mind that it's 2020, going on 2021, and this type of tax evasion is at high risk of backfiring, especially if you're resident in a wealthy and developed country.
There’s a high risk that your customer would have issues during an audit and they might not even be able to deduct your invoices as an expense.
Even if your client goes along with it, imagine the situation during an audit: “So you paid $20k to this BVI company, what was this for?”
“Oh, that was just for David’s services, he comes to our office twice a week to fix our servers. He lives just down the street.”
Depending on where your clients are based, they may not want to do business with you at all, either because they don’t condone tax evasion or because︀ they are afraid of being complicit/bad press. They may have compliance departments that check such︁ things before even signing a contract with you.
If it’s a pure online business that︂ only sells B2C, something like the BVI might work, but otherwise, you should probably find︃ a more reputable jurisdiction.
Even if your client goes along with it, imagine the situation during an audit: “So you paid $20k to this BVI company, what was this for?”
“Oh, that was just for David’s services, he comes to our office twice a week to fix our servers. He lives just down the street.”
Depending on where your clients are based, they may not want to do business with you at all, either because they don’t condone tax evasion or because︀ they are afraid of being complicit/bad press. They may have compliance departments that check such︁ things before even signing a contract with you.
If it’s a pure online business that︂ only sells B2C, something like the BVI might work, but otherwise, you should probably find︃ a more reputable jurisdiction.
It completely depends on your clients.
But even if they don’t care, they might face issues having your invoice accepted during an audit - and at that point, everybody cares.
But even if they don’t care, they might face issues having your invoice accepted during an audit - and at that point, everybody cares.
That completely depends on your customers and kind of business. Many people may not feel comfortable doing business with a typical offshore tax haven company.
Incorporate in a jurisdiction with better reputation if you want to play it safe.
You can register it in your home country, but I guess that would defeat the purpose. 😉
Incorporate in a jurisdiction with better reputation if you want to play it safe.
You can register it in your home country, but I guess that would defeat the purpose. 😉
It completely depends on where your client is located. There are countries where you can be held accountable if someone you bought services from didn’t pay their taxes.
You probably won’t want your clients to end up having to answer questions, so I would recommend to play it safe. Unless you have a very large customer base where you don’t care if one customer faces trouble during an audit and terminates the contract. But of course it’s a︀ lot of if’s. Maybe none of your clients will ever face an audit, or if︁ they do, maybe the auditor won’t care. In the end you just have to decide︂ for yourself.
You probably won’t want your clients to end up having to answer questions, so I would recommend to play it safe. Unless you have a very large customer base where you don’t care if one customer faces trouble during an audit and terminates the contract. But of course it’s a︀ lot of if’s. Maybe none of your clients will ever face an audit, or if︁ they do, maybe the auditor won’t care. In the end you just have to decide︂ for yourself.
I am doing besides my ventures, IT Consulting and it all depends on your clients. Three of my clients are in the logistics and shipping sector, they are used to companies all over the world,. However if you are targeting small businesses or some more conservative sectors like banking etc. an pure offshore company might be not suitable.
For tax problems,
Let's say I︃ register a BVI/Marshall Island Offshore company with nominee director + shareholder setup.
Then I applied︄ 3rd party payment gateway for my B2C website.
And Then I move money with company︅ EMI and exchange cryptos and transfer to another private wallet.
so no taxes, no audit︆ for this offshore company.
1) Do you think this kind of tax evasion will become︇ a problem?
2) Will there be problem for the 3rd party payment gateway doing business︈ with this setup/trouble so they stop business?
Thank You.
Let's say I︃ register a BVI/Marshall Island Offshore company with nominee director + shareholder setup.
Then I applied︄ 3rd party payment gateway for my B2C website.
And Then I move money with company︅ EMI and exchange cryptos and transfer to another private wallet.
so no taxes, no audit︆ for this offshore company.
1) Do you think this kind of tax evasion will become︇ a problem?
2) Will there be problem for the 3rd party payment gateway doing business︈ with this setup/trouble so they stop business?
Thank You.
No it will not work, the payment processor and the EMI will report you at the latest of the end of the year. Personal tax will apply in that case.
In this case will they report the nominee or me? and Personal tax for nominee or me? How would home country knows how much tax I need to pay when the money send to my anonymous crypto wallets, and there is no audit required?
So is it the only legit way to move money, is to register a company in home country then invoice the BVI company, and pay the︀ home country taxes?
So is it the only legit way to move money, is to register a company in home country then invoice the BVI company, and pay the︀ home country taxes?
It will be you, if you do some Google search on this forum: site😱ffshorecorptalk.com crs reporting you can find lots of information about this topic.
Anyway, the nominee as it used to be will not protect you from the tax office. You will have to pay local personal income tax from your corporate earnings if you don't set this correct up.
Best is either to join mentor group and learn some basic or you consult a tax advisor.
Anyway, the nominee as it used to be will not protect you from the tax office. You will have to pay local personal income tax from your corporate earnings if you don't set this correct up.
Best is either to join mentor group and learn some basic or you consult a tax advisor.
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