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Let's say I was eligible to receive some mid-five figure consulting income from an overseas entity domiciled in a non-treaty country sometime later this fall, and I wanted to delay paying taxes as long as possible, yet still take advantage of compounding investment returns. Should I set up an offshore company with nominee directors and shareholders in a low-tax region for the purposes of conducting some other business, like insurance, thereby delaying paying taxes on the income? I understand the cost of doing so is initially around $1500 or so, with subsequent years in the $600 range.

Part of what's driving my this is the real estate market here in my area is white hot, and buyers are coming into the market with an extra $100,000 to spend, something that blows me away. If I am to buy a house here the only recourse I can see is with effectively compounding returns tax-free.

I also have the option to take equity, in lieu of cash, in a foreign company for which there is no listed market. Furthermore, the company isn't required to file a set of accounting documents regarding assets or earnings with any public entity as a condition of it's status as a going concern. Would this be a good vehicle to use for my purposes, assuming the assets of the company were readily verifiable? It looks like the company could buy Treasury bonds and pay no taxes until it was liquidated and wired the funds back onshore. I think the whole thing can be accomplished via internet, and strong encryption,. too. No problem with privacy. What blows me away is that I can do it all with brand-name institutions, too. Very little counter party risk involved, certainly no more so than domestic transactions.

I've arrived at this by doing extensive research on the internet, looking at many many sites devoted to alternative banking strategies for international activities, and get the feeling that many of the strategies are actually practical for the average Joe now, like myself. No need to get on a plane to anywhere, actually. I wonder if the present administration intended the outcome of ease of capital movement through technology, as their current industrial policy has fostered...

I know this is a touchy area in regulation, so in the spirit of an open forum, any thoughts are appreciated.

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