Avoid tax with the Shark | 4
First edition: December 2019
Second edition: March 2020
Third edition: December 2020
Fourth edition: Jan 2022
Published by
AvoidTax.Online
www.avoidtax.online
contact@avoidtax.online
All rights reserved.
No part of this book may be reprinted or reproduced or
utilized in any form without permission in writing from
the publisher.
Table of contents
Abbreviations
1. A new era
2. The Financial Privacy Network
3. AvoidTax.Online
4. Why work with an online tax planner?
5. The importance of up-to-date information
6. It will be hard to find a creative accountant
7. What's to expect in 2022, (1) less travel
8. What's to expect in 2022, (2) further de-banking
9. What's to expect in 2022, (3) DEFI and crypto
10. What's to expect in 2022, (4) kangaroo companies
11. Meet Dietrich, the freelance IT consultant
12. FAQ
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Abbreviations
AEOI, Automatic Exchange of Information
AML, Anti Money Laundering
CRS, Common Reporting Standard
DEFI, Decentralized Finance
DTA, Double Tax Agreement
EU, European Union
FATCA, Foreign Account Tax Compliance Act
KYC, Know Your Customer
OECD, Org. for Economic Coop. & Development
PEP, Politically Exposed Person
UAE, United Arab Emirates
UBO, Ultimate Beneficial Owner
VAT, Value Added Tax
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1
A new era
When Panama signed the CRS in January 2018, as the 98 th
country, everybody in finance and banking recognized that
a new era had begun.
With Panama, roughly all traditional offshore tax havens
had now signed agreements to exchange bank account
information (AEOI) automatically.
Although most offshore jurisdictions had previously
committed to CRS, the signing of Panama was a
landmark, a symbol. Soon there would be nowhere to
hide. Bank secrecy and financial privacy are dead.
By end of 2021, here is the list of countries that signed up
for CRS, the so called OECD status of commitments:
Anguilla, Argentina, Belgium, Bermuda, British Virgin
Islands, Bulgaria, Cayman Islands, Colombia, Croatia,
Cyprus, Czech Republic, Denmark, Estonia, Faroe
Islands, Finland, France, Germany, Gibraltar, Greece,
Guernsey, Hungary, Iceland, India, Ireland, Isle of Man,
Italy, Jersey, Korea, Latvia, Liechtenstein, Lithuania,
Luxembourg, Malta, Mexico, Montserrat, Netherlands,
Norway, Poland, Portugal, Romania, San Marino,
Seychelles, Slovak Republic, Slovenia, South Africa,
Spain, Sweden, Turks and Caicos Islands, United
Kingdom
Andorra, Antigua and Barbuda, Aruba, Australia, Austria,
Azerbaijan, The Bahamas, Bahrain, Barbados, Belize,
Brazil, Brunei Darussalam, Canada, Chile, China, Cook
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Islands, Costa Rica, Curacao, Dominica4, Greenland,
Grenada, Hong Kong (China), Indonesia, Israel, Japan,
Lebanon, Macau (China), Malaysia, Marshall Islands,
Mauritius, Monaco, Nauru, New Zealand, Niue4,
Pakistan3, Panama, Qatar, Russia, Saint Kitts and Nevis,
Saint Lucia, Saint Vincent and the Grenadines, Samoa,
Saudi Arabia, Singapore, Sint Maarten4, Switzerland,
Trinidad and Tobago, Turkey, United Arab Emirates,
Uruguay, Vanuatu
Ghana, Kuwait, Nigeria, Oman, Peru, Albania, Ecuador,
Kazakhstan, Jamaica, Kenya, Maldives, Morocco,
Georgia, Jordan, Moldova, Montenegro, Thailand,
Uganda, Ukraine, Rwanda
Countries that have not yet signed or set a date for the
exchanges:
Algeria, Armenia, Belarus, Benin, Bosnia and
Herzegovina, Botswana, Burkina Faso, Cabo Verde,
Cambodia, Cameroon, Chad, Côte d’Ivoire, Djibouti,
Dominican Republic, Egypt, El Salvador, Eswatini,
Gabon, Guatemala, Guinea, Guyana, Haiti, Honduras,
Lesotho, Liberia, Madagascar, Mali, Mauritania,
Mongolia, Namibia, Niger, North Macedonia, Palau,
Papua New Guinea, Paraguay, Philippines, Senegal,
Serbia, Tanzania, Togo, Tunisia, Viet Nam
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If you zoom in on the list of countries that did not sign up
for CRS, you will notice that these remaining countries are
not exactly prime banking locations.
If you have funds you want to keep in a foreign bank
account, without the risk of being exchanged, these are the
places you could theoretically still bank.
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2
The Financial Privacy Network
There is hardly any wiggle room left in the financial
privacy space, which is why the Financial Privacy
Network was born in 2019.
Despite all the reporting mechanisms, the death of bank
secrecy, and offshore tax-havens, the left-wing keeps
singing the same tune.
Remember, a decade ago. Leftist preached that due to all
the money hidden in tax havens, the tax bill of average
Johny was that high.
Now, ten years later, all former traditional tax havens are
reporting bank account information automatically.
Allegedly, billions of dollars re-surfaced and returned
home.
The EU blacklist of non-cooperative tax havens has
merely a few jurisdictions left: American Samoa, Fiji,
Guam, Palau, Panama, Trinidad and Tobago, US Virgin
Islands and Vanuatu.
They put Panama on the list despite the fact that it
exchanges bank information automatically. We have
clients that came for help, after being reported by Panama
to their country.
I notice two things.
One, the left-wing keeps hammering the same nail about
offshore tax havens as if nothing has happened in the last
decade. In reality, a tsunami came over the financial
world.
Two, lots of money re-surfaced, but I haven't seen any
government announcing tax cuts due to these “fortunes
repatriated”.
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The Tax Justice Network (TJN) is one of the organizations
at the forefront of the fight for financial transparency.
Let's have a look at the Tax Justice Network "Financial
Secrecy Index". Here is how they rank the 2021 top 10
'secretive jurisdictions':
1. Cayman Islands
2. The United States
3. Switzerland
4. Hong Kong
5. Singapore
6. Luxembourg
7. Japan
8. The Netherlands
9. The British Virgin Islands
10. The United Arab Emirates
I quote from the TJN website:
...“An estimated $21 to $32 trillion of private financial
wealth is located, untaxed, or lightly taxed in secrecy
jurisdictions around the world. Secrecy jurisdictions - a
term we often use as an alternative to the more widely
used term tax havens - use secrecy to attract illicit and
illegitimate or abusive financial flows...”
First of all, that number is bogus and is nowhere near what
they claim it to be. But it sounds great, doesn't it,
'trillions...'
A figure and quantity that is so enormous it is hardly ever
used apart from the use in scientific studies on bacteria or
distances to the stars...
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What they claim is, for example, that Switzerland is a taxhaven and consequently count all the money in
Switzerland as being offshore wealth. It is like going to a
bar and considering everyone in the room being an
alcoholic.
The second major problem with these statements is thaat
except for the USA, which has its dedicated reporting
system FATCA, all of the countries on their list signed up
for CRS.
In other words, if you were to open a bank account in 9 of
these 10 jurisdictions, your government will automatically,
yearly, receive all your bank account information. In short,
transparent, as opposed to secretive.
In general, there is no traditional financial secrecy
anymore. There is no bank secret; there are no bearer
shares. No bank offers numbered accounts nowadays.
Nevertheless, the transparency-crusaders keep singing the
same old song, over and over again.
I guess the words 'secretive', 'illicit,' 'illegitimate' and
'abusive' sound nice. Those clubs are like weeds; they
keep coming back. My opinion is that they try to keep
their 'poor news show' on the road.
Whatever the case, the time has come to give
counterweight to these transparency crusaders. Enough is
enough.
The Financial Privacy Network is a think-tank dedicated
to Financial Privacy. As such, it is not a company, and it is
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not engaged in any economic activity.
It informs its audience through the website www.financialprivacy.net and hosts a YouTube channel "Financial
Privacy" with short informative videos on related topics.
However, behind the scenes, the Financial Privacy
Network team is researching and studying ways to
reinstate financial privacy and secrecy.
At the Financial Privacy Network, the core belief remains
that privacy is a fundamental right. Your finances are none
of my business.
One of their thinkers, Yulia Keating, has become a
reference on the subject. Not only on analyzing the current
status of financial privacy, but the she also discusses ways
to circumvent being reported yourself.
In an era where the Swiss gave up their bank secret, where
a traditional Panamanian offshore company has become
useless and where the Cayman Islands automatically
exchange your bank information, author Yulia Keating
writes a refreshing ebook on the current status of financial
privacy. "Financial Privacy 2020, Bank Secrecy is dead.
Financial privacy is dead. Find out how to stay below the
radar.”
In the first part of the book, she makes a strong case as to
why financial privacy is essential to all of us.
The second part of the book zooms in on recent
mechanisms that undo your financial privacy.
But, the cherry on the cake is the last part of the book. She
talks about ways to circumvent all the above mechanisms
and how to reinstate your financial privacy.
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Some of these methods are unheard of and no less than
explosive. They are so delicate, that miss Keating was
reluctant to publish the book on her own, and she turned to
the 'Financial Privacy Network' to do the publishing for
her.
The book is written in very accessible language and gives
plenty of practical, real-life examples.
If you are interested, you can pick her books up on our
website under E-books.
But she didn't stop there, on the contrary. 'Stealth
Finance' (2021) is Yulia Keating's fourth book. Where her
first three books were controversial, this publication
contains no less than volcanic material.
Miss Keating was a senior relationship manager in the
offshore banking industry. She was in the building when
the offices of law firm Mossack- Fonseca in Panama City
were raided following an epic hacking of confidential
data.
With a mountain of sensitive information on international
tax avoidance, Keating lives in hiding since 2019. She
can't promote, lecture on, or sign her books in public.
This book offers a glimpse into her encrypted laptop.
Contrary to a whistleblower, she remains loyal to former
clients and reveals no identities or companies. Instead, she
describes in detail the methods a secret society of highlevel professionals developed to avoid all reporting and
compliance mechanisms, including FATCA, CRS, KYC,
and AEOI.
This elite fraternity has been working underground
tirelessly for the last years to revive financial secrecy from
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the grave.
The book starts with the fall of Switzerland's oldest bank
Wegeling&Co and the demise of the strictest bank secret
on the planet. Keating elaborates on the most recent
fintech and crypto methods to obscure the real ownership
(UBO) of assets and transactions.
The book describes banks' central role in uncovering and
exchanging client's identities with governments and the
methods used to work around that.
It dissects the new, modified, and digital CRS-proof
versions of the Trust, Hawala, online money transfers, and
the Kangaroo system. Techniques that make it possible to
transfer money globally and hold assets confidential and
anonymous, in short, stealth finance.
She addresses the possibilities of Americans abroad with
FATCA and the side effects that come with financial
secrecy: tax avoidance and evasion. 'Stealth Finance' is the
pinnacle of recent financial secrecy publications.
We expect that in the coming year, new ways will develop
to circumvent the global reporting mechanisms.
The network has set-up a global elite task force that is
now researching and developing solutions to reanonymize and hide wealth.
This task force is not concentrating on illicit or criminal
money, cash transactions or helping out organized crime,
let that be clear. It is not because some left-wing
transparency-geeks want you to walk the streets with your
money in a transparent plastic bag that we are about to do
so.
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To formulate it in the style of a UK prime minister: “We'd
rather be dead in a ditch than giving up our financial
privacy!”
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3
AvoidTax Online
Since we are swimming upstream, we'll introduce our tax
platform: www.avoidtax.online. A semi-commercial online
platform centered around international taxation and lowtax solutions.
First, let's get the ethics nonsense out of the way before
the left-wingers can open their mouths and say a word.
Miss Fanny Barnes shops in local supermarket X. Why?
Because supermarket X is cheaper than supermarket Y.
Company Amason or Feesbook incorporates in country X.
Why? Because country X levies three times less tax than
jurisdiction Y.
I am no longer wasting time engaging in discussions about
the morals of tax avoidance. Is it politically correct to
legally reduce your tax bill?
Is it morally and politically correct to pay 3$ for coffee in
bar A, instead of paying 4$ in bar B for the same product?
Let that be a discussion for academics. I don't care, and
neither should you.
No more explanation needed; the subject is closed.
We are going to avoid taxes. We are going to avoid tax in
the open. We will not hide nor disguise avoiding tax.
Tax avoidance is as legal as going to the store. Just like
Fanny Barnes is not walking to supermarket X in disguise
or with a balaclava on her head, to hide the fact that she is
looking for discounted rice.
We launched our online platform for that purpose, with an
aggressive and visible shark logo. Who do you want to be
your tax planner, the sheep or the shark?
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The mission is to get the low-tax message out and create
relevant and accurate content, most of it is free; articles,
videos, case studies, e-books, and whatnot.
There is also paid content available for those who want to
go in-depth, need personalized advice or are ready to start
their low tax life.
Do you know what the cool thing is about all this?
Not only is all this legal, but there are so many legal
options available that we do not even have to consider, let
alone offer, murky offshore solutions. All nice, clean, and
perfectly acceptable. Read the mission statement on our
website.
In the field of tax optimization, we can not move around
"Financial Secrecy, the blueprint series." The centerpiece
is "Blueprint 1, Avoid Tax, NOW!" a manifest for taking
action.
When countries collect half of their citizens' income in tax
and social security contributions, it does not take a rocket
scientist to understand that individuals and corporations
look for tax avoidance strategies.
We admire the courage of an author to write about tax
avoidance in times where transparency, political
correctness, green and ethical entrepreneurship are
advocated on a daily bases. Not Yulia Keating.
She seems outraged about politicians imposing massive
taxes on their citizens while at the same time displaying
sheer incapability to manage their countries' budgets.
She discusses several different methods for companies to
reduce their tax bills drastically, even to 0% for those who
declared a Fatwa against paying tax.
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One of the most exciting chapters in the book reveals tips
and strategies to shift profit between entities, designs that
apply to small companies.
Keating strongly opposes to the idea that tax evasion can
only benefit big and international corporations.
Except for US Citizens, who are taxed based on their
citizenship, every person or company that pays more than
15% of tax, will benefit from the ideas in this book.
In her typical razor-sharp, harsh, but witty style of writing,
she presents her ideas in a clear and accessible way to the
reader.
The book is an absolute 'must-have' for anyone seriously
interested in business, tax planning, and optimization.”
I made a video on how much profit you should make to
start considering international tax optimization. You find it
on our website under the page 'video.' The amount to start
benefiting is lower than you think.
On the same web page, you will find 8 videos and case
studies on tax reduction. We start with the client's profile
and business and do detailed tax calculations before and
after.
To make it more interesting, we showed the real estate the
client was able to afford with the tax savings over a period
of five years. We considered income levels from 50'000 to
240'000€/$/£ per year for this video series.
In the second part, "Blueprint 2, Asset protection and
hiding wealth," it is time to zoom in on the protection of
the assets required.
One of the ways is to hide your wealth and render it
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invisible to all possible threats. The author presents the
reader with 3 case studies. In one of the cases, the
beneficiary completely disappears from the face of the
earth with all his assets.
A special one-time project is our free e-booklet 'The
Corona Crash'.
The world is at war with a Pandemic. Unfortunately, the
medical side of this catastrophe is only the beginning. The
Covid-19 epidemic will lead us straight into a global
recession. This virus is going to hit you 3 times. This free
eBook explains in detail why and how you are going to
pay for the economic fallout. It points you in the direction
of solutions. You'll learn; how the Coronavirus is going to
hit you 3 times. Why you will pay for the virus. How you
are going to pay for the economic fallout and what you
can do to prepare. The book is available as a free
download in our eBook section on the website.
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4
Why work with an online tax planner?
Tax planning and optimization traditionally ran through
accountants, tax planners, lawyers, and service providers
with brick and mortar offices.
We do not take websites into consideration that sell shelf
company packages in the British virgin islands with a
bank account in Zurich. Nowadays, that is called a scam.
Today, offshore companies are as good as useless for tax
avoidance. Bank secrecy is dead; numbered bank accounts
belong to the past, bearer shares are merely a myth.
Legally avoiding tax has become a lot more complicated,
and you, as a business owner, need to know A LOT more
information.
We decided to launch the platform avoidtax.online in an
era where Amazon is among the world's biggest
companies, where more and more services are fulfilled
through the internet.
Our platform gives us the technical means to provide you,
automated, with tons of free information. Our platform
offers free articles, videos, case studies, eBooks, and we
host a YouTube channel. Everyone can study this free
information carefully, and become more knowledgable in
international tax matters.
Where the bulk of tax planners specialize in only one field
or one jurisdiction, we offer a wide range of different
solutions to our clients.
Here is an example.
Business owner X is under the impression that a Labuan
Company will be the solution to lower his taxes from 48%
to 3%. So, he contacts a tax planner specialized in that
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specific jurisdiction. After exchanging some e-mails and a
face-to-face, mister X gets a hefty invoice only to realize
this Labuan structure is not suitable for him, or his
business.
Well, for that same price, we offer an entire masterclass
https://www.avoidtax.online/masterclass-1 with a toolbox
and all you need to know about international tax matters in
general, with 8 low-tax solutions, a handbook, and 3
bonus ebooks.
The masterclass gives much essential information on
international business, need to know things to stay legal
and when you cross the line to illegal.
So much has changed over the last five years; CRS, AEOI,
FATCA, UBO, KYC, AML, OECD-MDR, it is a forest of
complicated legislation.
We guide our Masterclass subscribers through that forest
by pinpointing what is imperative to them: only the
essentials, no fluff.
The 8 hand-picked solutions guarantee a minimum of one
or two workable solutions for every business.
And to top it off, you get a 1-on-1 consultation at the end
of the program and we'll zoom in on your situation.
Still want more personal guidance? No problem, we are
available. But with our online platform, we can provide
you with a lot more content and value for money than any
traditional tax planner since we are location-independent.
Apart from that, I want to stress that we do not intend to
exclude the human component completely!
You can still have all the personalized services you desire.
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We offer video calls, online meetings and brainstorming
sessions. All those are hosted on our encrypted video
platform where you will enjoy total freedom of speech. No
mainstream hackable platforms where you need to
download software, leave your email, login and sofort.
Plain, simple, in and out. That is how we roll.
And if you are a high-net-worth individual with a really
complicated situation, we can arrange a meeting in person.
In our experience however, smaller companies can be
helped through our online platform combined with a (few)
video call(s). Please read our testimonials on the
masterclass to see how others experienced the process.
We are currently hosting a membership program for 'high
net worth' individuals. We holistically approach their
individual situation, starting with the business, taxes, asset
protection, and inheritance planning - cradle to grave
approach. Check out our webpage 'the Vault.'
Keep in mind that we have decades of operational
experience in global tax planning. We research, develop
and travel around the world.
We have our own investment fund, our own real estate
agents, our own law-firms. We have brick and mortar
offices in three continents to satisfy the necessary
substance requirements.
Do not hesitate; get in touch with us; drop us an email
with your situation and background information on
contact@avoidtax.online or book a video call on our
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website www.avoidtax.online under 'talk with the shark'.
Love to hear from you.
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5
The importance of up-to-date information
The world has changed; the rules have changed.
Structures and mechanisms that existed a decade ago do
not exist anymore. Things that were legal two years ago
are now illegal.
It is essential to have the correct, up-to-date, and most
recent information. Surfing the internet, picking some info
here and there, and implementing it yourself, is as
dangerous as playing Russian Roulette.
We still see websites today that offer classic online
offshore company incorporation, including the remote
opening of bank accounts in Switzerland. That is a scam!
No compliant jurisdiction allows for that to happen. Do
not fall for it.
Nowadays, a lot is still possible, but you have to do your
homework or have it done for you.
Gone are the days that one $3'000 offshore company with
nominee directors and a bank account, protected with
bank secrecy, could do the job. You will get annihilated
with FATCA, CRS, AEOI, KYC, AML, UBO, substance,
transfer pricing,...
In this era, tax consultants will have to approach the client
holistically:
What business is the client in?
In what jurisdictions are their companies?
Where do they live?
What is their tax residency?
Are they ready to relocate? Or are they unable to leave
their country?
Is their company going to flag out from the high tax
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country?
Or is a sister company, a holding, a branch or a subsidiary
more appropriate ?
One of the things we ask the client is what kind of living
environment they prefer. We try to avoid referring a client
that can't stand heat to the desert of Umm-Al-Quwain in
the Emirates.
People underestimate the importance of quality of life
when they are looking to relocate for tax purposes. We
take that into account.
Many variables to assess! Be careful with DIY solutions,
contact us for assistance.
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6
It will be hard to find a creative accountant
As per 01-01-2020, the EU incorporates the OECD
“Mandatory disclosure rules for CRS avoidance
arrangements and opaque offshore structures,” targeting
all intermediaries setting up tax avoidance schemes or
structures that hide the UBO directly or indirectly.
The remaining non-CRS countries are expected to join and
sign up soon.
For example, mister X is Danish and pays 58% of
personal income tax.
X contacts an intermediary (accountant, tax lawyer,
service provider) to find a way out.
This intermediary has the obligation to report mister X in
advance. If he were to help, and X gets caught with an
illegal tax set-up, they will go down together.
We expect that the bulk of intermediaries are not going to
take the risk. Finding creative tax planning solutions will
be next to impossible as per January 2020. You will have
to dig deep or travel far to find quality tax planners.
Another solid reason to work through our online platform.
We are location-independent, we are in the cloud. We are
everywhere and nowhere.
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7.
What's to expect in 2022, (1) less travel
The main event of 2021 was, without a doubt, the Covid
pandemic. One of the side effects was that international
travel became a challenge, and flying to set up an entity
and opening a bank account was impossible for several
months.
We expect international travel to remain an issue.
For that reason, we will develop more remote tax planning
solutions for our clients. Those solutions do not require
the client to travel by incorporating entities with our
representatives and lawyers using a POA and remote bank
account opening where possible, or even better, turn to
alternative banking solutions with one or more Fintech
solutions.
In essence, enlarge the foundations we built during
previous years when helping our clients who were
physically stuck in lockdowns or without the appropriate
QR code.
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8.
What's to expect in 2022, (2) further de-banking
De-banking comes down to maximally avoiding all
traditional banks. Banks are a pain. I wrote many articles
on the challenges of working with banks nowadays, and I
will not repeat them all here. Where a bank used to be glad
to get your business, nowadays, the client is expected to
be delighted to be accepted as a client and even get a bank
account in the first place. 2022 will become the year of
further de-banking. Our motto: less bank is more.
We host creative Fintech solutions to avoid using
traditional banks altogether, but at the same time offer all
similar financial services: sending and receiving money,
international transfers, use of payment cards, ATM money
withdrawals.
Many clients are under the wrong impression they cannot
do business without banks, but this is no longer the case.
Another alternative would be the use of umbrella bank
accounts of existing third parties, persons or entities.
Clearly, we are not giving away all our secrets here, since
the taxman is also reading our eBooks.
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9.
What's to expect in 2022, (3) DEFI and crypto
You need DEFI, DEcentralized FInance, even if you are
not investing or holding crypto. Because it allows you to
transact funds without classic intermediaries (read banks).
Decentralized Finance does not rely on intermediaries like
banks, brokers or exchanges.
When you transfer money to your brother, using a
traditional bank, the money moves from your bank
account with bank A to the bank account of your brother
with bank B. Even without international intermediary
banks, there are still two banks involved.
However, if you were to transfer a cryptocurrency stable
coin to your brother, there are no intermediaries who can
block, cancel the transaction or hold on to your money
until you submitted supporting documents like contracts,
invoices or agreements.
That is why the future of crypto and DEFI is bright.
People inquire more often about the role and use of
cryptocurrencies in legal tax planning, avoidance and tax
optimization.
Evermore, people are trading, investing, and speculating
with cryptocurrencies and want to know how to handle
those profits. We believe that the importance of crypto in
this field will explode in the coming years, mainly because
of the growing dominant position of banks.
It becomes increasingly difficult to open international
bank accounts and wire money abroad. Bank accounts are
closed, frozen, and transfers are refused and cash is
returned to the sender.
Here is where crypto offers valuable solutions in moving
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financial assets from A to B. Due to the decentralized
nature of crypto, a transfer can happen in minutes without
a centralized organization (bank) has to process or
approve the transaction. We engineered some very creative
solutions for our clients.
Some clients are afraid of the volatility of crypto and
therefore do not consider using this unique technology.
We explain to our clients that the use of stable coins (e.g. a
coin that follow the US dollar) might be a solution to their
volatility concerns.
We see several categories of clients in the crypto sphere
reaching out to us. Here are some examples.
There are those clients with regular jobs that invest in
crypto on the side but make substantial profits. Their
profits are often on trading platforms and they want to
cash out some of those profits. Maybe they want to buy a
car or another asset. Perhaps they want to cash out
monthly to use crypto profits to pay for some daily
expenses while leaving their traditional income
untouched. It is common that wallets and exchanges only
allow fiat withdrawals to bank accounts in their personal
name. This implies that the bank, and potentially the
taxman, are aware of those profits.
We have solutions for that type of client.
There are those clients who (recently) became successful
in DEFI or crypto and are now full-time traders or in
DEFI. Let's call them the pros. Often, they have quit their
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day jobs because they understand there was more money
in trading than working nine to five. But at the same time,
those people might have bank loans, rent and bills to pay,
which is not that simple with all their money in crypto.
If they cash out fiat to their bank accounts, they reveal the
existence of their wallets to the bank and the taxman.
You have to understand that when the bank knows about
your crypto wallet, it is a small step for the information to
end up with the taxman.
A solution might be to provide those clients with an
external regular monthly income unrelated to their crypto
holdings. That can be organized. They keep most of their
funds in crypto, but at the same time, they will have some
transparent income.
Having a visible, declared income is always an advantage.
If you are a crypto millionaire with no official income,
your yellow Lambo might flash some red flags. How does
a person without any official income live that lavish
lifestyle? They might suspect you of being a drug dealer.
We have clients that earn 20'000$ per month in crypto, get
a 5'000$ declared income, and keep the remaining 15'000$
out of the system. The 5'000$ income is taxed, but it gives
them the freedom to rent, drive, buy, and live below the
radar. Do not worry, solutions exist if you are in that
category.
Some clients hit the jackpot and are now sitting on a few
million worth of crypto and have no idea what to do next.
If they declare their income and wallets, the taxman
spectacularly slashes their gains.
We develop solutions for that category of people too.
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Several times, we indicated that significant changes
occurred over the last decade in the banking world.
A major shift occurred from privacy towards total
transparency. In our opinion, that shift has been made and
we expect no way back from the exchange of bank
account information, KYC and AML.
Crypto and DEFI, however, are in full swing. The sector is
expanding, and governments will seek ways to ban, limit
and control that parallel financial system. There would be
no reason for governments to take on money in traditional
banking but leave trillions of dollars worth of crypto
untouched. They want to know about your crypto assets,
and they want to tax them. Very simple.
You will see crypto-friendly countries emerge on the one
hand, and crypto-hostile countries on the other hand.
Since the sector is in full development, governments are
looking for ways to get their greedy hands on your bullrun gains. The good news is that our solutions are also in
full development.
Contact us for more info on the topic.
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10. What's to expect in 2022, (4) kangaroo
companies
Kangaroo companies are structures that allow people to do
business, earn income or optimize taxes without having
their own company. Or, having their own company and
transact with an unrelated, third party company, or an
intermediary.
It is always more interesting to transact from your
company to a non-related third party, than to transact
between two of your companies. Especially when the
transaction direction is from your company in a high-tax
country to your company in a low-tax company.
Transfer pricing rules make that those transfers will be
analyzed by the taxman under a microscope.
In that case, a kangaroo might be a solution.
For those interested in the mechanism, Yulia Keating's
ebooks 'Financial Privacy 2020' and 'Stealth Finance'
dedicate chapters to the kangaroo.
Here are a few scenarios on how a kangaroo is used:
A freelancer wants to work without investing or setting
up a company, paying an accountant, renting an office,
providing a company address, traveling abroad.
Instead, he will use a kangaroo company that will invoice
on behalf of this freelancer and take care of all
administrations, in return for a fee. The freelancer uses the
structure of the kangaroo company (like the baby
kangaroo uses the 'structure' of his parents). The kangaroo
will make the money available to the freelancer. Contact
us for details on how this is done.
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A crypto trader makes a lot of money. His money is
'untouchable' and often not taxable because it is hidden
from the government. The fact of having no official
income has downsides. They can't buy a house, sometimes
it is hard to get a rental property or lease a car without
provable income. At that point the kangaroo can provide
the crypto trader with an official income in fiat currency
like dollars, pounds or euros. It allows the crypto trader to
use part of his assets without revealing all his positions,
wallets, and trading accounts to the government.
An entrepreneur has a company in a high-tax (A) and in
a low-tax country (B). Every transaction from A to B is
under scrutiny by the taxman. Because the taxman
understands that the more money shifts from A to B, the
less taxes will be paid in country A.
The kangaroo (K), acting as an intermediary non-affiliated
third party, breaks the link. Instead of transactions from AB, now there is A-K-B. Adios to transfer pricing.
In short, lots of possibilities exist. Read 'Stealth Finance'
by Yulia Keating to find out more or book a video call to
discuss your situation or questions.
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11.
Meet Dietrich, the freelance IT consultant
My name is Dietrich, and I am a resident in a high-tax,
Western-European country.
As a Freelance IT consultant, I make around 80'000€ per
year. My tax burden used to be around 37'000€ per year,
leaving 43'000€ of net income. Let' say that half of my
income goes to the government.
I found the Shark through an online ad on Bing and
downloaded the free ebook. I sent an email, and I got an
answer the next day.
Although I was initially advised to take the masterclass, I
opted for 1-on-1 consultations with the Shark. In total, we
had two brainstorming sessions, and that was enough to
draw up a low-tax solution, fit and adapted for my
particular situation.
I am not (yet) ready to move (to a tax-haven), and I also
want to keep enjoying my country's social security and the
healthcare system.
We decided to keep 24'000€ as a base. That keeps my
social security intact. Combined with my business
expenses and the tax-free threshold, I only pay a few
hundreds of euros in tax on that amount.
That leaves me 56'000€ to optimize.
With business expenses and taxes included, I now pay
8'000€ instead of 37'000€.
This yearly tax saving of 29'000€ equals 2'500€ per
month, which is a substantial amount of money for me. It
represents more than the cost of my studio apartment, my
car, and all my insurances combined. In ten years, it's the
price of a house.
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12.
FAQ
How do I proceed?
Inform yourself, read our articles, watch our videos,
download an ebook. Email us when you are ready to cut
your tax bill or just email us your question. Do you have
an idea or a setup but you want our feedback on it?
Book a video conference or a brainstorm session and we'll
take it from there. All this is possible from the comfort of
your home or office.
Many clients start with a short video call 'talk with the
shark' and understand the vast amount of creative tax
solutions available.
In a second step, they decide to go in-depth and have a
brainstorming session or the 'Tailor-made tax plan' where
we go over the details and the numbers. Start your low-tax
journey for a few hundred dollars.
We get a lot of emails from potential clients like 'Hi, I pay
a lot of tax, do you have a solution?' At that point you will
get an email back with a few questions from my side, in
order for me to understand what your situation is.
So, if you send us an email, please provide some
background information. It might save us both time.
Where do you live?
Where is your tax residency?
What is your passport?
What is your business?
How do you get paid? (bank transfer, Paypal, Stripe, Visa,
Payoneer, crypto,...)
How much profit do you make?
Are you prepared to move/relocate?
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Any other useful info.
The more information you provide, the better I can assess
your situation. And in the rare case we would not have a
solution for your specific situation, we will let you know
in advance.
Can the SHARK make it happen?
Our team has decades of experience in international tax
planning and optimization dating back to the good old
days when your financial privacy was still respected.
The number of solutions we have at our disposal is
staggering. We have a presence in dozens of jurisdictions
on the planet. Yes, we make it happen, and you will like it.
Contact us to find out.
Our system triangle
Tax planning these days requires a holistic approach.
We start from an upward triangle or pyramid. The three
corners are: residency, tax and assets.
Residency is the top corner, the apex, because that
determines how you are taxed and influences your asset
management.
We ask our clients where they live and if they are prepared
to move. Let me confess to you something; most of our
clients can not move or relocate. Social life, children
going to school, local business and clients, partners having
jobs, withhold them to pack their bags and move to a tax
friendly climate. Now that the top corner (residency) is
nailed, we work with what we have and design creative
tailor-made solutions to optimize their tax situation (the
second corner) and their asset management (the third
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corner). Go live where you want to be, we optimize your
tax situation.
Do you sell shelf companies?
No, we sell nothing 'pre-made.' Every client we
accompany gets tailor-made needlework to fit his specific
needs. The shark does not produce standard 'factory
clothing'. You are unique, as is the solution we provide for
you.
What are our tax goals?
Depending on the clients' business and flexibility, we
reduce their tax bills to somewhere between 0% and 15%.
We also take into account potential costs related to the
setup: running costs of an office abroad, agents,
accountants. For you, the bottom line matters including all
(hidden) costs.
Who can benefit?
Solutions start for clients that earn more than 50'000$/€/£
per year. If one makes less money, usually, the savings in
tax are not worth the effort. The higher the earnings or the
company profits, the more you save in tax.
Watch my video “how much you have to make for
international tax optimization” on our 'video' webpage.
Is it worth it?
That is up to you to decide. We assess this for our clients
by doing the math and determine the bottom line, the total
financial result, for our clients. We calculate taxes but also
incorporation and monthly costs to operate an
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(international) company. That way the client can perfectly
compare the total picture. The solution always has to make
sense, and the numbers should support that.
Let's do the math on two highly simplified examples:
Example 1
X has 100'000€ of profit before tax.
X lives in a high tax country and pays 40% in tax.
TAX = 40'000€
NET = 60'000€
New situation after tax optimization
100'000€ of profit
10% in tax
TAX = 10'000€
new set-up, extra costs: 500€ per month = 6'000€/year
total tax + costs = 16'000€
NET = 84'000€
So the total cost for the client is 16% instead of 40%
benefit = 40'000-16'000 = 24'000€/year = 2'000€/month
Example 2
Y has 300'000€ of profit before tax,
Y lives in a high tax country and pays 40% in tax.
TAX = 120'000€
NET = 180'000€
New situation after-tax optimization
300'000€ of profit
10% in tax
TAX= 30'000€
new set-up, extra costs: 1'000€ per month=12'000€/year
total tax + costs = 42'000€
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NET = 258'000€
benefit = 120'000-42'000=78'000€/year = 6'500€/month
What about asset protection and hiding wealth?
Recently, more and more clients inquire about financial
privacy, sometimes even whether they can financially
disappear. Is it even possible? Yes, in certain cases, it is
possible to dive below the radar. Read Yulia Keating's
eBook “Asset Protection and hiding wealth” or “Stealth
Finance” and contact us, mail us, or book a video call.
What is holding people back?
Not taking action is the number one reason people keep
paying ridiculous amounts of tax. Once they understand
the vast amount of possibilities there are, they regret not
contacting us sooner. So here is our call to action: inform
yourself, drop us an email, book a video call, and let us set
things in motion.
Hope to hear from you soon!
Link to our eBooks:
https://www.avoidtax.online/e-books
Link to video Calls:
https://www.avoidtax.online/shark
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