Hey,

I will probably be getting a big job contract offer from Canada and a friend of mine suggested that I should establish an offshore company with a bank account, in Belize for example, to avoid paying tax marginally. I googled and found this.

http://www.tax-planning.org/Belize_IBC.html

I emailed customer support twice with questions and they replied promptly assuring that it is completely legal and I could produce a Certificate of TAX Exemption to SARS. They have 24 hours support facility and Novik is a law firm based in the UK.

There are many advantages:

• Nominee services through lawyers
• Highest level of privacy protection
• Limited liability without any paid up capital requirement
• Legal tax examption
• No taxation on any kind of income
• No accounting requirements
• No reporting requirements
• No fees for accountants
• No auditing
• No requirements on profession or financial standing
• Business can be comducted internationaly

Their answers to my questions:

1. Does that mean I don't have to pay any income taxes should I want to withdraw the fund to pay my day-to-day expenses, mortgage bond, etc. in South Africa? Can the Certificate of Tax Exemption be submitted should SARS (South African Revenue Services - TAX) want to verify.

NO TAX at all. Sure, you can submit the Certificate of TAX Exemption, no problem

2.
Will the nominated beneficiary in my will get my money if I die.

Sure, as usual

3.
No banking account? It didn't mention anything about the banking account.

You can see bank account http://www.accounting-on-line.com/offshore_banking.html


It looks promising but the only thing that I'm scared of is that SARS will claim this as tax evasion instead of legal tax avoidance.

Say, if I get R 300,000 from Canada ane I will have to pay effective tax rate of about 35%. I will just pay costs of about 10% in total.

What do you guys think?