Isn’t it scary how much governments are intruding into our lives?
In Australia, the average person now pays 69% tax.
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 … )
The fact is, paying higher taxes is becoming more of our lives each day, and our hard-earned wealth is more at risk than ever!
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 knowing high quality international tax planning solutions. 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!
Yet on the other hand, we don’t want to go to jail for our tax planning either, as many found to their peril with Operation Wickenby …
In Operation Wickenby, many Australian companies got “too aggressive” and used Vanuatu companies to shift monies through. Very simply they did something like this …
- A Vanuatu “management” company was set up
- Agreements were made between the Vanuatu company and the Australian entity whereby management fees and royalty or intellectual property fees were charged that were very high, and way beyond any service the company actually provided
- These payments were a tax deduction in Australia
- The Vanuatu company paid the monies back into Australia as a loan to the Australian people, or to their companies or trusts, but in practice, the loan was never repaid, and was never going to be
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 using international tax planning solutions 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 international tax planning through overseas structures. However, overseas structures can still be incredibly powerful to protect assets, as you will see as you read further on.
There are many ways you can use to minimize your tax. These include:
- Using BVI companies to hold cash or other assets for privacy reasons
- Using offshore companies (or IBCs) in a range of jurisdictions with tax treaties with Australia, eg. Malta, USA, New Zealand, Ireland
- Using offshore companies (or IBCs) in a range of non-treaty jurisdictions, eg. Hong Kong, Gibraltar, BVI, Samoa
- Using Offshore trusts
- Setting up international bank accounts
- Using overseas foundations and charitable trusts (Panama foundations are very popular, especially good for holding assets where you have a higher purpose)
- Second mortgages overseas, that is, you set up an overseas company which takes a mortgage over property in Australia
- International tax treaties
- And many others!
There are a lot of ways you can legally minimize your tax. For example:
- If you set up an overseas business with global clients, while still living in Australia, although you’ll pay tax when the money comes back into Australia, there are tax deferral benefits which can make a significant difference in accumulating and compounding wealth.
- If you choose to become a perpetual traveller and establish a residency outside of your home country (Australia, US, etc.) you will not have to pay tax on any offshore income from your business, or from trading the markets or your investments. You’ll only have to pay tax on your Australian or home country income.
- If you trade the markets and are still an Australian resident, you can set up a company in Singapore, Hong Kong, or Malta, and although you still have to pay tax in Australia, you don’t have to pay tax until you bring the money back into Australia. This gives you a tremendous opportunity to compound and build wealth.
- You have international tax treaties that can allow you to pay less tax, eg. capital gains tax in certain instances for companies which buy real estate in Australia, or buying assets overseas under certain treaties
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, international tax planning, and setting up overseas structures and bank accounts is a powerful way for tax minimisation for residents of Australia, and for asset protection in Australia.
Would You Like to Watch a Video and Learn More About How the Offshore World Works?
Warren has recently conducted a 2 hour presentation on how the offshore world works. He looks at everything from:
- Why western governments charge such high tax rates, the massive global debt problems facing governments, and why this is pressuring them to charge more taxes
- How Apple, Google, Ebay, Facebook, Starbucks and all the other multinationals legally pay less than 1% tax
- How any business owner with a global client base can do the same as the multinationals, even if they still live in a high tax country
- How the wealthy use companies, trusts, foundations and other structures to not only minimise tax but protect their wealth
- Real case studies of business owners or traders/investors (from people I’ve worked with) who can legally minimise tax by going offshore
If you would like to watch this webinar, Click here
To take the Next Steps to Work With Us, Click here
Who is Behind Wealth Safe’s International Tax Planning Solutions Division?
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.