3 ms·

I see lots of people wanting to go after shell companies here, and with good reasons. But if you live in a country where the state takes away 65% of the money t

by dsign 3y ago

I see lots of people wanting to go after shell companies here, and with good reasons. But if you live in a country where the state takes away 65% of the money the employer sets apart to pay you, and then your means are precariously sufficient to live in a small one-room apartment and you struggle to sustain an elderly parent who doesn't receive any support whatsoever from that same state that takes your money away for "social security" ... Yeah, then you start looking for "shells". This is the financial equivalent of the cherished right of Americans to have guns.

Mashimo 3y ago
What country is that?
- adrian_b 3y ago
  Many countries have total taxes much over 50% of the revenue for most people, frequently in the range from 60% to 70%, even if this is not at all obvious because the total amount of taxes is obfuscated by splitting them in many parts that are paid by distinct entities, e.g. the employer, the employee and the merchants (VAT or sales taxes), plus property taxes, medical taxes and so on.
  - Mashimo 3y ago
    Yes, for example the country I live in. But elderly also get support. And if you have lower income, the tax is also less. The question was in what country do you have to combination of the above. High income tax for low earners and low social security for elderly. And he is also implying that it's worth to create a shell companies for a single person. Which AFAIK also cost money.
sealeck 3y ago
How do shell corporations help you avoid paying income tax? Most countries now require employers to deduct this tax at source, so it's very hard to get out of it. Of course there are things you can try (e.g. your employer loans you money and then uses an offshore employee benefit trust to repay the loan) but tax authorities tend to come down quite hard on this.

3 ms·

I see lots of people wanting to go after shell companies here, and with good reasons. But if you live in a country where the state takes away 65% of the money t

by dsign 3y ago

Mashimo 3y ago
What country is that?
- adrian_b 3y ago
  Many countries have total taxes much over 50% of the revenue for most people, frequently in the range from 60% to 70%, even if this is not at all obvious because the total amount of taxes is obfuscated by splitting them in many parts that are paid by distinct entities, e.g. the employer, the employee and the merchants (VAT or sales taxes), plus property taxes, medical taxes and so on.
  - Mashimo 3y ago
    Yes, for example the country I live in. But elderly also get support. And if you have lower income, the tax is also less. The question was in what country do you have to combination of the above. High income tax for low earners and low social security for elderly. And he is also implying that it's worth to create a shell companies for a single person. Which AFAIK also cost money.
sealeck 3y ago
How do shell corporations help you avoid paying income tax? Most countries now require employers to deduct this tax at source, so it's very hard to get out of it. Of course there are things you can try (e.g. your employer loans you money and then uses an offshore employee benefit trust to repay the loan) but tax authorities tend to come down quite hard on this.