In 1995, two man, Davidson and Rees Moggs, wrote a book "The Sovereign Individual" where they predicted the COLLAPSE of the nation State.
They foretold the rise of the digital economy and the internet, and how it would widen the access of information for businesses and consumers ... ending the high tax bullying practices of western governments as people utilised global tax competition and immersed themselves in the digital economy.
We haven't seen a complete end yet. But we're seeing the signs.
People are becoming educated and are fed up with the amount of taxes they're paying in western countries, especially when hearing about multinationals and high net worth individuals paying less than 1% tax. All 100% legal.
Take these figures for instance …
At the Senate enquiry in late 2015, Uber taxis were grilled on their billing and tax practices.
Uber are smart operators. When you catch an Uber taxi and get billed from your phone app, you are billed by a company in Netherlands (let’s call it Uber Netherlands No. 1). The drivers get paid also from the Netherlands (let’s call it Uber Netherlands No. 2). Each country has a local company to manage their obligations, eg. Uber Australia, Uber USA, etc. This pays minimal tax. Because of the rules governing Netherlands foreign sourced income and through specialist tax planning, Uber pays no tax in Netherlands, all 100% legal.
The Senate inquiry was asked what can be done about it, and the response was “not much”.
This is a perfect example of what specialist tax planning can do.
Using a figure of $400,000 annual income, in 2013, Price Waterhouse Coopers did an analysis of the different countries and how much income tax you’d pay.
The findings were frightening.
Here they are in terms of % you actually take home …
This doesn’t even take into account GST, sales taxes, petrol taxes, capital gains taxes, stamp duty, and all the other horrible taxes you have to pay.
It isn’t surprising some believe you will pay up to 70% of your income in taxes when everything is added up.
The conclusion is this …
Seeking to become financially free and having a job or business and paying taxes without specialist tax planning is like trying to play football while wearing a 10kg backpack on your back
In saying that, you must ALWAYS ensure everything you do is 100% legal. Don’t do stupid crazy stuff like …
All these things are a sure way of having no wealth or having that dreaded knock on the door.
There is a sense of inherent right and wrong in all of this. Deliberately or foolishly cheating on our taxes always comes unstuck. The consequences aren’t worth it. Why go to jail or spend years of stress in courts and paying fines and penalties to make a bit of money?
In the modern world anyone can start a business online and have global customers … or trade markets internationally … or hire staff in Philippines or India. By being brave and by stepping out, as well as the reward of having power over your own life and finances, you can save a small fortune in taxes by using specialist tax planning and global tax competition legally.
Keep in mind the government aren't happy about it. As you will see in my 20 minute video (CLICK HERE), governments have over $200 trillion in debt to the international banks and are desperate to keep their revenue alive. And like all bullies, it is easier to target the small business than the multinationals who have the money and resources to stand up to bullies.
All freedom comes at a price and with responsibility.
Within Australia, UK, US, if you run a business or invest, there is a lot you can do, using companies, trusts and other structures. For detailed information on what this means, visit our article on: Companies & Trusts
On an international level and utilising global tax competition, you can minimise tax using specialist tax planning if …
You cannot do it if …
If you aren't doing any of that, you can’t do it. Simple.
It works this way because of how the controlled foreign company (CFC) and transferor trust rules work across western countries.
If you have an overseas company and you or other residents of your country (eg. Australia) own less than 40% of it, it is NOT a CFC meaning income is not automatically taxed in your home country (eg. Australia).
So for example, if you earn business income of any form, or investment income, you only pay tax if you bring it back into your home country.
If you have an overseas company and you or other residents of your country (eg. Australia) own 40% or more of it, or fall within other tests, your income is automatically taxed in your home country (eg. Australia). This means WHETHER OR NOT you bring it back into your home country, you will be taxed unless you satisfy the active income test.
(The active income test means legitimate business income, not passive investing or inter-group tranasctions).
That’s why you want top specialist tax planning before you even think about setting up structures.
Robert Kiyosaki in Rich Dad Poor Dad states one of the four most important things to master in business is specialist tax planning.
Ultimately the best way to go is to move offshore. That is what many are now doing.
To find out more, click on Offshore Tax Planning
It's never easy. There is so much information on the internet and not all of it is right.
You want someone who knows international tax laws and who understands the laws of your home country or can connect you with experts in your home country to work together as a team.
Click here to find out some tips on how to select a top international tax consultant.
Or click here to watch our 20 minute condensed video.
Call us on 1300 669 336.
Or click here to organise a no-obligation strategy session for specialist tax planning.
Written by Warren Black head of the Wealth Safe international tax planning division.
Warren has over 27 years experience in tax planning and asset protection, including 10 years at the Australian Tax Office. He is the ONLY recommended international tax consultant in Australia on Lance Spicer’s list of recommended international tax experts. Lance Spicer is a highly regarded authority in offshore structuring and planning and going under the radar.
Warren knows the tricks of the trade so you only pay the tax you legally have to and you take advantage of the international tricks available to build your wealth faster.
Complete the below form to discuss your options with us.
After a thorough analysis of your data and unique circumstances we advise you of all oppotunities. We guide you towards the best path and take control of implementation. Through every stage, we ensure full tax compliance and ongoing support.
It's a no-obligation risk-free assessment with a full money back guarantee (conditions apply).
Financially modelling your situation. We present your options and outline the possible tax savings.
We provide a written report with options to minimise your tax along with our recommendations.
WWe have a follow up meeting and create a strategic tax plan based on your choices.
We outline the process, costs and tax savings, and what you need to do from your side.
We fully implement your tax plan to ensure you meet all local and international legal requirements.
For those moving overseas to flee the Australian tax robbers, we help in the whole process from beginning to end.
Our service continues after we've implemented everything for you. We provide ongoing training to update you on changes as well as providing options to work with us on an ongoing basis.
Brilliant service!! Could not have asked for a better start to getting my business structure. This world is still completely new to me and I am very impressed with all the resources Warren and the entire team at Wealth Safe have provided to help me understand trusts
Living overseas, with no structures or assets in Australia anymore, it simply didn't make sense to keep paying into their tax system. Thanks to Warren and his team, they guided me through the process of setting up stable business structures, and making sure all the lawyers agreements and professional advise was documented. This ensured I met the obligations of the ATO and was 100% legally compliant with my obligations. I researched my options, and felt secure that WealthSafe took all precautions to ensure I was doing the right thing, and benefitting financially at the same time
After getting so much conflicting advice from other sources, we were completely confused. Being global business owners, we needed both Australian and international advice, so we reached out to War ren to help us understand exactly how we could structure our businesses to ensure we were well protected. It was vital to us that our future growth and decisions were taken into account. Not only did Warren give us the highest quality advice, and go above and beyond in ensuring we understood the full spectrum of what we were putting in place, but he has always been available for follow up questions, is always happy to get us on the phone for clarification, and he has shared the expertise in his team with us. At first, we have to be honest, we were really concerned about spending money on a consultation. The outcome is although not cheap, it is the best money we have ever spent. We can see significant savings, know we are structured well, have a fully dedicated and professional team behind us and have expert advice available when we need it. We can’t recommend Warren and the Wealth Safe team enough. Thank you
CV from Canada
He is very professional, knowledgeable and creative with his tax planning strategies, and very attentive in answering your questions and working with you to find the best set up for your individual situation. I feel confident working with him and his team, and his level of expertise is outstanding. I wouldn't trust any other company, and would highly recommend Warren Black and Wealth Safe to protect your assets
Although I thought the result I had figured out with my accountant were the most tax effective way I could setup myself up. I was in a position where I would have to pay 31k in tax. Warren found something in how I was setup, which turned my situation around to getting $15k returned to me. It's a $46k turn around.
Warren was able to set me up, and help me look forward to further tax reductions for the future. Also for improved asset protection. Warren also did bloodline wills for me and my wife. Full Review Here
I'm in the mining industry and run a small trading business. I had a tricky situation I had to get out of. I had default on my credit files. I got Warren on the job, he loves that sort of challenge. He didn't even charge me full price, he was excited at the challenge of helping me out. He succeeded and got rid of my default! I get Warren to do all my work now. I would recommend him to anyone
John G from Sydney
I run a small business. I was concerned about safeguarding my assets, myself and my family, and the amount of tax I was paying, but I also wanted to be legal and not get into trouble. Warren was able to provide me with a structure that protected me and my family and my assets and also helped to significantly and legally reduce the tax that I had to pay. Sure I had to pay and they aren’t the cheapest nor the most expensive, however it was well worth the fees paid. I certainly feel more comfortable and secure now
They were able to walk me through the whole process, even a tax dummy like myself.... I was very very impressed with the level of service. It was really end to end. They were always there to answer questions, help me complete paperwork and connected me with all the right people. I can't recommend Warren and Wealthsafe highly enough Full Review Here
Virna, Warren and the Wealth safe team have provided us with a professional and efficient experience helping us to identify and create a customised financial structure to suit our needs. They clearly have a great deal of knowledge regarding taxation in Australia. Also Warren's seminars have been of great help. We absolutely would recommend their services and are forever grateful for help and advise provided
I am a doctor (GP) who was making a good income, however, I was highly dissatisfied with the high amount of tax I was paying, and also feeling a little lost and frustrated in my life in general. I signed up to work with Warren and his team at Wealth Safe. It was one of the best things I have ever done. Firstly, I got quality advice on my tax and was restructured and legally was able to minimize my tax and get on top of it. Secondly, I joined his mastermind and got some personal mentoring, which was significant. It helped me shift a lot of mental and spiritual blocks, and financial imprints which seemed to be blocking moving forward and making major decisions. I learned also how to manifest and create what I wanted rather than what I don’t want, and I have even manifested a wonderful relationship with a very supportive partner. So all round, a great decision. Thanks Warren, and I would recommend Wealth Safe and Warren’s tax advice service and manifestation and imprint clearing to anyone!
I worked with Warren Black to open a Hong Kong corporation during the summer of 2018. Warren came highly recommended from my business contacts, who said that he was honest, trustworthy, and very knowledgable. I have to agree. My experience working with Warren was very good. Warren was extremely attentive to my questions, replying with solid answers in less than a day. He also took the time to explain options and rules in detail. When faced with some unique challenges that most businesses don't face, Warren was quick to roll up his sleeves, take action, and even put me in touch with his team so the process could move forward rapidly. This was above and beyond what I expected. To top it off, I found him very personable and really a pleasure to work with. If anyone is looking at a business entity in Hong Kong or Malta, I highly recommend Warren Black.
Warren, Virna and the team at Wealth Safe were fantastic in helping me set up multiple business structures overseas. They were always willing to have a chat on the phone whenever I felt like I needed extra help and they always replied quickly to my emails. The advice and structure set up was tailored to what I wanted to achieve and the whole process was easy and straight forward. I would 100% recommend utilizing their knowledge and expertise in setting up overseas and creating the life that you want to live :) I can't thank them enough.
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