4 ms·
You can already do this, but it would only result in being taxed twice—first when you earn your wealth as ordinary income or capital gains, then again when you
by smitherfield 8y ago
You can already do this, but it would only result in being taxed twice—first when you earn your wealth as ordinary income or capital gains, then again when you draw the salary or dividends from the company. No such thing as a self-licking ice cream cone (without committing tax fraud).
ETA: Getting your employer to pay your company instead of you would be tax fraud.
- lordnacho 8y ago> ETA: Getting your employer to pay your company instead of you would be tax fraud. Isn't that what people do if they are contracting?
- smitherfield 8y agoContractors pay income tax.
- lordnacho 8y agoI think this might be a US specific thing.
- smitherfield 8y agoDunno about other countries, but it seems unlikely it'd be different unless their tax authorities were born yesterday. Then again, by US standards most other countries make tax evasion a national sport, so I guess it's conceivable.
- lordnacho 8y agoSo for instance in the UK you can have a company that pays corporation tax at 20%. If you don't pay yourself anything out of it, that's it. Why would you have income tax to pay?