Originally posted by kazh
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Adding a foreign shareholder
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Down with racism. Long live miscegenation! -
Originally posted by kazh View PostThanks for your advice! Oh I wasn't complaining about the tone of responses, I am enjoying them! Yeah what I'm doing is tax evasion, it just seems wrong to me that after the first 15k and with corporation tax included, its 79% cut from what I give! I think it's not unreasonable to avoid that and just pay the corporation and tax and my friend to pay tax on the dividend in France inline with the amount received, like a normal person. I'd understand if we were millionaires trying to avoid tax but all I want is to be taxed at the rate any normal person would be.
A few people think I'm being vague, which I don't understand, I want to give money to my friend. Perhaps people are confusing vagueness with an answer that is not believable to them? Which I totally understand!
Anyway thank for your advice, I guess I should've just started the company jointly, but oh well!merely at clientco for the entertainmentComment
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Originally posted by NotAllThere View PostIt's only tax evasion if you benefit from it. What you are wanting to do on the face of it is give money to a friend and minimise the amount that goes to the tax authorities. That's called tax planning and is perfectly lawful and reasonable.
There is a reason we are cynical on here as it's usually right in the end (see my post above as well).merely at clientco for the entertainmentComment
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Originally posted by kazh View PostThanks for your advice! Oh I wasn't complaining about the tone of responses, I am enjoying them! Yeah what I'm doing is tax evasion, it just seems wrong to me that after the first 15k and with corporation tax included, its 79% cut from what I give! I think it's not unreasonable to avoid that and just pay the corporation and tax and my friend to pay tax on the dividend in France inline with the amount received, like a normal person. I'd understand if we were millionaires trying to avoid tax but all I want is to be taxed at the rate any normal person would be.
A few people think I'm being vague, which I don't understand, I want to give money to my friend. Perhaps people are confusing vagueness with an answer that is not believable to them? Which I totally understand!
Anyway thank for your advice, I guess I should've just started the company jointly, but oh well!
You can't just add 19% CT and 60% gift tax and get 79% total tax cut. That's just really dumb....
Back of the fag packet figures.
Assume 1:1 GBP:EUR
£40k income based on your early post.
- £9k salary
- £1k accountant
is £30k profit. That is taxed at c. £6k
take £24k as dividends and pay 7.5% tax on £22k of it is c. £2k
So you've paid £8k tax in UK now. And have £32k in your pocket.
Gift half (£16k) of that to your Al-Qaeda money-mule in France. They have £14k tax free (or whatever it is, there's too many pages to read back), and have 60% to pay on £2k of it (c. £1k)
Net result = £9k tax on £40k = 22.5% tax.
So tell me again what's unfair about that?
Can we close or move to general now?See You Next TuesdayComment
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Originally posted by eek View PostBut don't forget the previous person asking the almost same question revealed on page 8 that the money would end up in a joint bank account which the OP also had access to.
There is a reason we are cynical on here as it's usually right in the end (see my post above as well).
Originally posted by Lance View PostCan we close or move to general now?
If you do this and you have access to the money or indirectly benefit from it (e.g. the "friend" buys drugs with the money, sells, and the profits are laundered back to you), or you're funding a criminal or terrorist organisation, it's a criminal offence.
If you are just a nice person wishing to give a portion of money to someone you know who needs it, then it's allowed, but they'll be taxed on the value of the shares gifted, and on the dividends.
Thread closed.Down with racism. Long live miscegenation!Comment
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