Keeping Your Own Money - NOT Handing It Over To The Taxman
Most people trying to make a crust online (or offline for that matter) are so focused on doing just that, they ignore taking simple steps to ensure that they hang on to just as much of it as they can. Instead, they hand over large lumps of their hard-earned money in tax, usually in one of two mistaken beliefs. Either:
I'd respectfully suggest that those two "reasons" are mutually exclusive. Visiting penal sanctions on citizens because they decline to hand over their money to you could hardly be regarded as the mark of a civilised society. In fact it might more properly be regarded as the mark of a criminal one!
So how does this situation arise, and how can the thinking man or woman avoid it?
Most e-mails I receive regarding business opportunities trumpet the benefits of being an entrepreneur. Now the Shorter Oxford English Dictionary defines "entrepreneur" as follows:
"A person who undertakes or controls a business and bears the risk of profit or loss".
Yes, that's "risk", "profit" and "loss". All things that people with their own businesses regard as being as inevitable as night following day.
Interestingly, the SOED contains no definition of "rentseeker". Still, key the term in to Google and you'll discover that it refers to people who want to be paid to take your money for a "service" that you would not yourself choose to pay for.
Now let's just talk this one through:
Now, in any other context, this process is known as "robbery", or, more subtly, "fraud".
After all, it IS your money, right? Well not according to Uncle Sam, or, depending where you're based, your nearest friendly local equivalent.
Governments seem to think that they've generally got a whole lot better set of ideas about what to do with your money than you might have yourself (despite all the evidence to the contrary in front of everyone's eyes). What they've particularly got, however, is a set of excellent ideas for using your income to pay their own salaries and pensions (final salary, index-linked, performance-irrelevant). And these people are known as rentseekers.
The legendary investor, Jim Rogers, writing in the Foreword to "Financial Reckoning Day", by Bill Bonner and Addison Wiggin, had this to say:
"In America, if you have a job, you pay taxes. If you save some money, you pay taxes on the interest. If you buy a stock and get paid a dividend, you pay taxes. If you have a capital gain, you pay taxes again. And when you die, your estate pays taxes. If you live long enough to get social security, they tax your social security income. Remember: you paid taxes on all this money when you earned it originally and yet they tax it again and again".
Now wouldn't it just be nice to avoid all of that?
Because it's the simplest thing on earth, particularly if your earnings are being generated in that weird nether land called cyberspace, to use a set of perfectly legal arrangements to process your money FREE OF TAX.
In other words, you set yourself up a company, a bank account, and a business address somewhere no predatory taxman stalks! That is, OFFSHORE. There are quite a large number of these jurisdictions, and there is not a single Fortune 500 company that doesn't use them. I kinda think that tells you a lot.
Once it's all in place it works just like any other company arrangement - you just don't pay any tax!
Now no-one's suggesting that it costs nothing to set up these arrangements, and it's true it's not going to figure high in your priorities if you've got a marketing budget of $10 and are wondering how to pay the rent. But, assuming that you're already generating even reasonable income, it just has to make sense to look into this.
After all, even if you're not interested in saving yourself a whole lot of money, there's another reason you might wish to avoid all of this. I'll leave you with another quote, this time from Charles Adams, in "For Good And Evil: The Impact Of Taxes On Modern Civilisation":
"Tax haven 'refugees' report that they are tired of fighting the taxman. They have had enough of audits, year in and year out, of having their banking and accounting records picked over and questioned. They are tired of having their privacy totally destroyed by inquisitional tax agents. They are tired of appeals, big fees for tax professionals, and endless tax litigation. Many complain that the soak-the-rich philosophy of their homelands was not as intolerable as the harassment and scorn they receive from revenue bureaucrats".
Personally, I can relate to that...
If what I've been saying strikes any chords at all with you, there's much more at http://www.advent-taxfreedom.com, and a free e-zine too.
About The Author
Leo Rogers: http://www.advent-taxfreedom.com
offshore finance ' tax freedom ' secret banking
Black Americans Are Much More Likely to Face Tax Audits, Study Finds The New York Times
India Keeps Restrictive Crypto Tax Rules In 2023 Budget Yahoo Finance
India crypto industry on ‘Stairway to Heaven’ as government ignores requests in Budget - Yahoo Finance
India crypto industry on ‘Stairway to Heaven’ as government ignores requests in Budget Yahoo Finance
Unicorn CEO says he’ll leave Israel, stop paying taxes to protest legal overhaul - The Times of Israel
Unicorn CEO says he’ll leave Israel, stop paying taxes to protest legal overhaul The Times of Israel
Here's what you need to know about the fight over property tax cuts in the Texas Legislature - The Texas Tribune
Here's what you need to know about the fight over property tax cuts in the Texas Legislature The Texas Tribune
Here's what investors should know for tax season Yahoo Finance
Legalising cannabis could raise billions in taxes. Think of what we could do with that money! - The Guardian
Legalising cannabis could raise billions in taxes. Think of what we could do with that money! The Guardian
Former Florida CEO Sentenced to Prison for Tax Evasion Department of Justice
Bills would exempt period products, diapers from taxes Arizona Mirror
How Your Venmo or Etsy Payments Could Impact Your Taxes GOBankingRates
Cities following legislation on housing, sales taxes, local control Daily Inter Lake
Tax Tip Tuesday: Use IRS Free File to do your taxes for free WRTV Indianapolis
Mount Vernon schools, city at odds over $11 million in unpaid taxes News 12 Westchester
Got a Tax Question? Ask a Pro GOBankingRates
Tax season help Topeka & Shawnee County Public Library
How Do Full-Time RVers Get Mail or Pay Taxes? ‘You Can’t Just Fly by the Seat of Your Pants.’ - Mansion Global
How Do Full-Time RVers Get Mail or Pay Taxes? ‘You Can’t Just Fly by the Seat of Your Pants.’ Mansion Global
Colorado Republicans seek short- and long-term property tax ... coloradopolitics.com
Report: Oklahoma personal income tax bigger issue than business ... - Oklahoma Council of Public Affairs
Report: Oklahoma personal income tax bigger issue than business ... Oklahoma Council of Public Affairs
Legislators look at budget, taxes and election security on Tuesday Wyoming News Now
Today is the last day to pay property taxes in Tarrant County. Here’s how to do it without braving icy roads. - Fort Worth Report
Today is the last day to pay property taxes in Tarrant County. Here’s how to do it without braving icy roads. Fort Worth Report
After splitting from Essex Junction, Essex town residents face a proposed 22% property tax hike - VTDigger
After splitting from Essex Junction, Essex town residents face a proposed 22% property tax hike VTDigger
LARRY KUDLOW: Cut spending, taxes and regulations in order to generate a big recovery - Fox Business
Taxes On Taxes On Taxes Patch
North Hampton NH sued by million-dollar homeowners over ... Seacoastonline.com
How to get a bigger return on your taxes WFMYNews2.com
Learn how your property taxes can be lowered by keeping bees at 13th Annual Beekeeping School - KBTX
Your Investment Lost Money Last Year. So Why the Big Tax Bill? The New York Times
Kansas Chamber flat income tax plan costs more than Brownback ... The Topeka Capital-Journal
Tampa city council candidate accrued over $60,000 in unpaid taxes over past decade - Creative Loafing Tampa
Tampa city council candidate accrued over $60,000 in unpaid taxes over past decade Creative Loafing Tampa
Property tax frustrations | News, Sports, Jobs Minot Daily News
Rittman City Council wants to bring back higher tax rate after overtaxing error - WJW FOX 8 News Cleveland
Rittman City Council wants to bring back higher tax rate after overtaxing error WJW FOX 8 News Cleveland
Justice Pushes Income Tax Cut in Martinsburg | News, Sports, Jobs Wheeling Intelligencer
OPINION: Personal taxes on Alaskans would be harmful Anchorage Daily News
Tax Season 2023: Ask Michelle Singletary your pressing tax ... The Washington Post
Buckley’s Corner: Entitled to Death and Taxes National Review
Lou Giard: More rich people should pay fair share of taxes Lewiston Sun Journal
What role should property taxes have in funding K-12 schools? Wisconsin Public Radio
City to fight lawsuit over new taxes Santa Monica Daily Press
Cut Taxes, Invest in Our Kids | Office of Governor Jim Pillen Governor Pete Ricketts
Wall Street Journal highlights Idaho's historic tax cuts | Office of the ... Governor Brad Little
Sales taxes show November spending mostly stagnant - The Record ... TheRecordLive.com
New Income Tax Slab Budget 2023 LIVE Updates: Sitharaman's 5 cheers for income taxpayers in final full Budget - Economic Times
New Income Tax Slab Budget 2023 LIVE Updates: Sitharaman's 5 cheers for income taxpayers in final full Budget Economic Times
Taxes slow India's solar power rollout but boost manufacture The Associated Press - en Español
FactCheck.org Calls Out Biden and Dems for Lying About “FAIR Tax ... Americans for Tax Reform
Earned Income Tax Credit: Do You Qualify? Kiplinger's Personal Finance
You might be paying too much — or too little — in property taxes ... Salt Lake Tribune
Cigar lover speaks out against proposed 95% tax: 'Government won't be happy unless we're all smoking weed' - Fox News
Cigar lover speaks out against proposed 95% tax: 'Government won't be happy unless we're all smoking weed' Fox News
Tax Relief for Californians Impacted by Storms | California Governor - Office of Governor Gavin Newsom
Tax Relief for Californians Impacted by Storms | California Governor Office of Governor Gavin Newsom
The State Tax-Cut Movement - WSJ The Wall Street Journal
The Pitfalls of Flat Income Taxes – ITEP Just Taxes Blog
Taxes 2023: Here are the biggest tax changes this year Yahoo Finance
3 Ways to Pay Less Taxes in 2023 Kiplinger's Personal Finance
Your Tax Refunds May Be Smaller This Year The New York Times
Trump Organization Fined $1.6 Million for Evading Taxes The New York Times
Wealth taxes: State lawmakers plan to introduce bills to tax the rich The Washington Post
When Are Taxes Due in 2023? Tax Deadlines by Month Kiplinger's Personal Finance
Inflation and Taxes: A Married Couple's Taxes Stay the Same? Kiplinger's Personal Finance
Tax Records - What You Should Keep And For How Long
Many taxpayers are confused about how long they should keep tax records. The term "tax records" refers to your tax returns and the documents that support the information in the returns.
Donating Cars To Charity - New Tax Rules
On June 3, 2005, the IRS released guidance on charitable deductions for donated vehicles. The American Jobs Creation Act (AJCA) radically changed the amount of the deduction taxpayers can claim for their donated car.
Marriage or Divorce - Check Your Social Security Number
Newlyweds and the recently divorced should make sure that names on their tax returns match those registered with the Social Security Administration (SSA). A mismatch between a name on the tax return and a Social Security number (SSN) could unexpectedly increase a tax bill or reduce the size of any refund.
Navigating The Internet Sales Tax Laws
QUESTION: I have been contacted by my local city government to say that my business is scheduled to be audited to determine if I owe any sales tax from items purchased on the Internet. Can they really make me pay this tax? I thought you could buy things online tax free? -- Katie R.
Tax Investigation - What You Need To Do
The knock on the door from a Tax Inspector is something that every taxpayer fears. Your immediate thoughts will be "Have I been honest with my tax returns or not".
Tax Trap #4 -- The Quagmire of Depreciation
If you are a Small Business Owner or Self-Employed Person,there's one especially lucrative tax break that not onlyputs money in your pocket, it also makes the filing ofyour business tax return much simpler.What am I talking about? It's called the Section 179deduction, and if there's one tax break you need to understand, this is it.
The Tax Man Cometh... To Search
You're at your office, or home, and the doorbell rings - it's the Canada Revenue Agency ("CRA").The first thing to do is find out why they've come.
Need an Offshore Sales Office in a Tax Free Environment?
The 100 year old investment-banking firm of Warburg, Dillon Read (on Park Ave. N.
Furnishing Evidence in E-Tax Compliance
Self-assessment relies on taxpayers voluntarily meeting their tax obligations. This concept is recognised in all tax statutes, which sets out taxpayers' primary obligations, and clearly spells out that taxpayers are required to determine the amount of tax payable correctly and to pay it on time.
Take Control of Your Taxes
As everyone in the U.S.
Correspondence From The IRS - Yikes!
It's a moment every person dreads. You pick up the mail and there is an envelope from the IRS.
Small Business Tax Issues for Self-Employed Individuals
The United States is a nation of entrepreneurs. There are literally tens of millions of self-employed individuals that enjoy pursuing their dream business.
Where to Find Tax Breaks for Your Home Based Business
April 15th looms in front of most people every year like a big, full moon full influencing a tax based frenzy, but knowing where to find tax breaks for your home based business can make that frenzy a little less frantic and more beneficial to you and your home based business. Finding tax breaks for your home based business is not overly difficult, but make sure you discuss tax breaks for your home based business with the person doing your taxes.
IRS Obtains More Than 100 Injunctions Against Tax Scheme Promoters
The IRS has obtained civil injunctions against more than 100 promoters of illegal tax avoidance schemes and fraudulent return preparers in an ongoing crackdown that began in 2001. Many of the injunctions, obtained in cooperation with the Department of Justice, also order the promoters to turn over client lists and to cease preparing federal income tax returns for others.
Tax Deductions - Mr. C.P.A. Can I Deduct a Pizza? You Too Can Deduct Your Fun By Using Tax Tips
Recently, I stumbled across a concept that could change your financial life. You can call it a paradigm shift or a new perspective or just a different way to look at things.
Tax Trap #3 -- IRS Penalties, Interest and Love Letters
As a small business owner or self-employed person,one of the easiest ways to keep Uncle Sam off your backand out of your life is to file your forms, payments andother paperwork on time.Over the next four months there are several key datesthat you dare not forget! Here they are -- all in one place,along with links to the IRS website PDF file for thatparticular form, where appropriate.
Save Money on Taxes - Is the Only Way to Get Your Tax Savings is to Sleep With an IRS Agent?
Tilting the Tax Laws in Your Favor.In order to accelerate your movement along the wealth building curve, you absolutely MUST have your own business.
Home Based Business Tax Deductions
Running a home based business reaps many wonderful tax deductions that other businesses some times may not claim. Unfortunately to many small business owners end up paying the government taxes every year because they are unaware or several small business deductions that are available.
What to Do If You Can't Pay Your Taxes
The end of tax filing extensions is quickly approaching. What do you do if you can't pay the amounts you owe? You should still file your return by the due date and pay as much as you can.
Tax Trap #2 -- Double Taxation: Isnt Once Enough?
Have you been thinking about incorporating your smallbusiness or self-employment activity? The advantagesare many!For starters, you'll be protecting yourself and your familyfrom the possible of a business ending lawsuit. Forming acorporation is Step One on the path known as "AssetProtection" -- you are moving from the world of unlimitedliability to the world of limited liability.
|home | site map|