|
| |
|
|
sarge
Posts: 374
From: London England
Status: offline
 |
Where' s the money? - 10/25/2002 21:43:31
Hi-
I' m currently looking at the various ways of collecting money on the web (paypal, 2checkout, worldcom, own merchant account etc.).
But a question that keeps cropping up in my mind is " Where, exactly, is the the money?" .
By this I really mean, " Where is the tax liability?" .
From ' places' like Paypal, I can direct the money to land, ultimately, wherever I please (within the constraints laid down by ' package' ), and this raises some interesting questions.
For example:
1.) I' m in the UK. What if I opened a USA or Canadian bank account, and sent the money there (to be ' enjoyed' when I visit - which I often do)?
2.) Could I ' land' the money in an offshore account (say, in the Seychelles -albeit by a circuitous route), and what would be my tax liability if I did?
3.) What if I ' sold' that part of the website that handles incoming money to an offshore company, and was ' paid a commission' by that company (a percentage of the the total income), which I would declare to the taxman?
I realise that the rules surrounding tax liability vary from country to country, but can anybody offer some words of wisdom or point me in the right direction?
(And I' m not looking for tax evasion; only tax avoidance.)
|
|
|
|
Doug G
Posts: 1189
Joined: 12/29/2001
From: SoCal
Status: offline
|
RE: Where' s the money? - 10/26/2002 13:36:39
Check with your accountant and/or lawyer.
In the US I don' t think where you put incoming cash has much to do with the tax liability. For example, if you sell a $100.00 item here in California to a Californian, and he pay' s you with gold nuggets you put under your matress, you will still pay the sales tax of 7.75% ($7.50) and whatever income tax the $100.00 in revenue causes for your business because the income is included in the tax returns you file.
If you fail to report the income you will be violating the law here, no matter where the bank account is.
Things may be different for multi-national corporations :)
_____________________________
======
Doug G
======
| |
|
|
|
turboguy
Posts: 165
From: Beaver Falls PA USA
Status: offline
|
RE: Where' s the money? - 11/6/2002 18:06:35
Hey Sarge,
Ok, this is the way it works. If you are in the UK as you are and you sell a widget to someone in California and have the money deposited to an account in the cayman islands. (This is what you asked, right?). Right now internet out of state (or country) sales are exempt from sales taxes. I think the purchaser is supposed to declare them in your state and pay them, but no one does and on one really cares much. You have no problem with sales tax. That leaves income tax. Here if I miss add something or try to deduct something I shouldn' t I will get a hefty fine and penalties. If I try to hide income in a secret offshore account, I go to jail for a long, long time (plus penalties and fines). (things there should be about the same) There is enough of a paper trail doing what you are talking aobut that you would be an idiot to do it. The nice thing though is the prisons are so liberal now that you will probably have internet access so you can ask more questions here. LOL.
| |
|
|
|
Seventh
Posts: 1235
Joined: 8/4/2002
From: The Motor City
Status: offline
|
RE: Where' s the money? - 11/6/2002 18:17:33
quote:
Original: turboguy
The nice thing though is the prisons are so liberal now that you will probably have internet access so you can ask more questions here.
Is that speaking from experience?[:j]
_____________________________
"go forth and create."
| |
|
 New Messages |
 No New Messages |
 Hot Topic w/ New Messages |
 Hot Topic w/o New Messages |
 Locked w/ New Messages |
 Locked w/o New Messages |
|
Post New Thread
Reply to Message
Post New Poll
Submit Vote
Delete My Own Post
Delete My Own Thread
Rate Posts
|
|
|
Printable Version 
