Elmer, The problem is this can rarely be proven. The clever person uses anonymous phone cards to speak to their offshore manager, never a fax or phone trail home. One problem is how do you use the money?, you cannot buy cars, houses etc in excess of what your visible means can support. So you get an offshore credit card and get cash advances and spend like a sailor. Or you build up your asset base offshore and use it for travel, kids education at other than USA colleges, buy land, property etc offshore, and eventually you may choose to retire there. A peculiarity of Canadian law is that if you leave and work offshore and keep no residence in Canada for that period in excess of a year you are not taxed on your earnings, whatever they may be. So you leave with nothing, stay away a year and return with money, bank it and then pay taxes on what it earns. They do this to at least get the money here and get your downstream earnings. I do not know how the USA treats such long periods of non residency?
I think there is a thread for this, try these
Subject 25664
Subject 22323
start one up, get audited, try it?
Bill |
