Finance Questions? Ask a Financial Expert for Answers ASAP
Dear Friend,Hello and welcome. Thank you for using Just answer. Let me get straight to the point.
a) To begin with, YES, no tax would be due on the profits until the Money is brought to the US. There is no taxation in Cayman other than stamp duty and import duties.
Citizens of the United States use Cayman as a tax haven for two purposes: tax evasion and tax avoidance. Tax avoidance is any legal measure used to lower actual tax liability. However, as you also rightly understood, that once the money brought to the US, would be taxed as ordinary income.
b) No, it is not true that the shareholders are not required to be disclosed. Please note that the Cayman allows you to be used as a tax saving / deferment tools. However, it would be illegal if you take it forward to conceal money and indulge in money laundering. All disclosures would be mandatory.You will list your holding wherever required irrespective your the year when the money is disbursed or not.
c) Standard GAAP rules would apply to this. All expenses like salaries, travel, etc. would be deductible. Only the profits that you have would be TAX FREE in the Cayman. For the tax laws, the following link would be an excellent resource for you.http://www.tia.gov.ky/html/FAQs.htm
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Hope this helps.Please rate this positively if this helps as this is the only way we get credit for assisting you. Alternatively, feel absolutely free to revert with further queries. If this still does not help, let me know, I shall opt out and let other expert assist you with this.Warm Regards....