Avoiding Tax Evasion Laws

[Calvin Jones]

A friend of mine is an internet marketer and the money he makes is from the US and is usually all wire payments.

He has set up a corporation in the British Virgin Islands -- and his bank account is set up in Singapore. So, the money he makes gets paid in the Singapore bank account (from the companies in the US/Canada, etc) and as I said, his corporation is set up in the British Virgin Islands (which is a tax have).

He tells me that he only pays US tax on the money that he withdraws in the US (so whatever personal expenses he has).

My one and only single question is, does he have to pay tax on the money that is sitting off-shore in his Singaporean account once he has declared it to the US?


Thanks for everybody's input.

Calvin

[jk]

Are you speaking of corporate or personal taxes?

[Calvin Jones]

Are you speaking of corporate or personal taxes?

The money that he withdraws in the US is for personal expenses. Is that the way you meant when you asked me this?

As I mentioned, the money in his Singaporean account is under the corporation which he formed in the British Virgin Islands.

[Calvin Jones]

Anybody? ..