The OECD, the world “secret police” who monitors offshore tax havens, now controls the tax systems of most countries in the world. Everyone is paying far too much tax!
(I love how the OECD say their purpose is to “eliminate unfair tax competition”, which in layman’s terms, means punish countries who are giving low tax rates so the big countries can charge more in taxes, but that is another story … )
For businesses and investors to get ahead, knowing how to do 100% legal tax minimization in Australia is critical. As Google, EBay, Starbucks and Facebook have shown, with their sexy “Double Dutch Sandwich” structures involving Ireland (only 12% corporate tax rate), and Netherlands (tax-free for holding intellectual property), the big companies have worked out the game, and hence, make more money for their shareholders and with the extra dollars, can give more jobs back into the community.
To build a strong global business, all these companies know how critical it is to work with experts and get good solid offshore company tax advice. As Kerry Packer said at the Print Media Enquiry in 1991:
“I am not evading tax in any way, shape or form. Now of course I am minimizing my tax and if anybody in this country doesn’t minimize their tax they want their heads read, because as a government I can tell you you’re not spending it that well that we should be donating extra.”
I love how Kerry puts that … we don’t want to be giving the government any more tax than we legally have to, as they aren’t spending the money well we should be donating extra!
In Operation Wickenby, many Australian companies got “too aggressive” and used Vanuatu companies to shift monies through. Very simply they did something like this …
Indeed the Tax Office has targeted celebrities like Paul Hogan, Glen Wheatley, and others. It’s certainly not worth going to jail for money!
This has scared many businesses and investors from getting advice about offshore company tax and how this can save them money in their business and investments.
The days of using dodgy tax planning schemes to avoid paying tax are well and truly over. The fact is, you are limited as an Australian business owner or investor from using offshore company tax through overseas structures.
However, this doesn’t mean you can’t do it legally. In fact, overseas structures are still incredibly powerful to not only minimise tax but also to protect assets as you will see further on.
There are many ways you can minimise tax using offshore company tax. These include:
That is why you need to work with experts who know what they are doing, and will slash your tax, but make sure it stays 100% legal.
In summary, using offshore company tax, and setting up overseas structures and bank accounts, is a powerful way to minimise tax, as well as give options for asset protection in Australia.
Warren Black is the head of the Wealth Safe international tax planning solutions division. With over 26 years experience in tax planning, including 10 years at the Australian Tax Office, and being the ONLY recommended specialist in Australia on Lance Spicer’s list of highly recommended international tax planning experts (Lance Spicer is a top authority on offshore structuring and planning, and going under the radar), Warren knows the tricks of the trade to ensure you only pay the tax you legally have to, and use offshore structures in an effective way to get results and not have any trouble.
Using international tax planning makes a significant difference to build your wealth faster and be financially independent. All my high net worth clients know this. It’s why they spend hundreds of thousands, even millions of dollars, on top tax planners!
Let’s take a look at the impact of tax rates on your wealth by an example …
Let’s say you invest $100,000 at 20%. Depending on the rate of tax, this is your net balance after 20 years.
48.5% tax $ 841,920.58
30% tax $1,618,027.01
15% tax $2,925,766.91
0% tax $5,282,753.06
If the balance is $1 million, you can see the exponential difference. Imagine investing $1 million at 20% growth for 20 years with no tax! Over $52 million.
It isn’t hard to see why you need international tax planning.
I see it as almost impossible to become financially independent living in Australia paying taxes like the masses. You have to know how to minimise your tax and work with the best experts to get out of the rat race. The rich all know this.
Every day you waste is a further erosion in your net worth.
Contact us today and start your journey to financial independence!