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Hi Folks
This is a revised short version of another post containing just the essence of the issue - inviting comments or suggestions. Other version I provided more personal background FYI but it's not neccessarily relevant to the core question.
I’m looking for feedback and comments on the prospect of becoming a legal non-tax resident and using valid legal structures to have an ‘international’ lifestyle and legally pay no tax on my business and personal income.
Currently I am a legal tax resident of Australia.
I have friends living in Dubai primarily for the tax benefits and have enjoyed visiting them and whilst I find the place interesting it’s not a place I would ideally choose to live for many reasons.
My ‘Tax Free Lifestyle Formula’ involves some simple premises as follows –
1. Leave Australia Permanently. I would even go so far as to sell my house, my car and dispose of all significant assets.
2. Never stay anywhere long enough to be classified a tax resident. Rules can be found for each country and it appears you can stay in some for as long as four (USA) to six months (Australia).
3. Incorporate a new company, legally, in a tax haven such as the Cayman Islands where I legally pay little to no tax on my income.
4. ‘Live’ in at least four countries each year for an average of three months ensuring compliance with number 2 above.
Form the date I leave Australia permanently I am no longer a Tax Resident as seen here –
https://www.ato.gov.au/Individuals/International-tax-for-individuals/Work-out-your-tax-residency/
My business is internet based and is structured around what I consider to be ‘The Ultimate Business Model’. All I need to make money is a laptop and an internet connection. I have excellent, diligent, hard-working staff (mostly in the Philippines) that have worked for me for years.
I’d like to spend three months per year in the good ol’ USA where I have lived previously on a number of occasions and have many good friends. I should be able to stay for around three months per year (possibly up to four but have to leave after three months based on my travel VISA) according to http://www.irs.gov/Individuals/International-Taxpayers/Substantial-Presence-Test
I’d like to spend three months a year in various European countries such as the Netherlands, Spain, Italy, Greece etc.
I’d like to spend three months a year in various South American countries such as Venezuela, Peru, Mexico, Brazil, Puerto Rico etc.
I’m assuming I could even come back to Australia for three months per year (potentially up to six) on holiday to visit family and friends according to this 183 day test –
https://www.ato.gov.au/Individuals/...etail/Residency/Residency---the-183-day-test/
I’d like to be clear my intentions are to have fun travelling the world making money LEGALLY paying no tax.
I am NOT interested in being sued by the ATO (Australian Tax Office) or equivalent foreign body such as IRS (Internal Revenue Service USA) at any time in future because they ‘don’t like’ what I’m doing.
There are a number of what I assume are legitimate companies offering business registration services in the Cayman Islands and other Low or No-Tax destinations. I will have to rent a virtual office and employ proxy services that may cost a few thousand dollars per year.
Note that I will be earning income from Australian customers and potentially a lot of income from American customers if that is somehow relevant.
Do countries get upset if you are choosing to live a modern nomadic lifestyle and are a non-tax resident of any nation and go after you?
I knew a guy who did this years ago mainly between just New Zealand and Australia by staying under six months in each but I lost touch with him.
Please feel free to chime in with your thoughts and feedback.
Does this idea seem plausible or do I have flaws in my premises?
With thanks
Sean
This is a revised short version of another post containing just the essence of the issue - inviting comments or suggestions. Other version I provided more personal background FYI but it's not neccessarily relevant to the core question.
I’m looking for feedback and comments on the prospect of becoming a legal non-tax resident and using valid legal structures to have an ‘international’ lifestyle and legally pay no tax on my business and personal income.
Currently I am a legal tax resident of Australia.
I have friends living in Dubai primarily for the tax benefits and have enjoyed visiting them and whilst I find the place interesting it’s not a place I would ideally choose to live for many reasons.
My ‘Tax Free Lifestyle Formula’ involves some simple premises as follows –
1. Leave Australia Permanently. I would even go so far as to sell my house, my car and dispose of all significant assets.
2. Never stay anywhere long enough to be classified a tax resident. Rules can be found for each country and it appears you can stay in some for as long as four (USA) to six months (Australia).
3. Incorporate a new company, legally, in a tax haven such as the Cayman Islands where I legally pay little to no tax on my income.
4. ‘Live’ in at least four countries each year for an average of three months ensuring compliance with number 2 above.
Form the date I leave Australia permanently I am no longer a Tax Resident as seen here –
https://www.ato.gov.au/Individuals/International-tax-for-individuals/Work-out-your-tax-residency/
My business is internet based and is structured around what I consider to be ‘The Ultimate Business Model’. All I need to make money is a laptop and an internet connection. I have excellent, diligent, hard-working staff (mostly in the Philippines) that have worked for me for years.
I’d like to spend three months per year in the good ol’ USA where I have lived previously on a number of occasions and have many good friends. I should be able to stay for around three months per year (possibly up to four but have to leave after three months based on my travel VISA) according to http://www.irs.gov/Individuals/International-Taxpayers/Substantial-Presence-Test
I’d like to spend three months a year in various European countries such as the Netherlands, Spain, Italy, Greece etc.
I’d like to spend three months a year in various South American countries such as Venezuela, Peru, Mexico, Brazil, Puerto Rico etc.
I’m assuming I could even come back to Australia for three months per year (potentially up to six) on holiday to visit family and friends according to this 183 day test –
https://www.ato.gov.au/Individuals/...etail/Residency/Residency---the-183-day-test/
I’d like to be clear my intentions are to have fun travelling the world making money LEGALLY paying no tax.
I am NOT interested in being sued by the ATO (Australian Tax Office) or equivalent foreign body such as IRS (Internal Revenue Service USA) at any time in future because they ‘don’t like’ what I’m doing.
There are a number of what I assume are legitimate companies offering business registration services in the Cayman Islands and other Low or No-Tax destinations. I will have to rent a virtual office and employ proxy services that may cost a few thousand dollars per year.
Note that I will be earning income from Australian customers and potentially a lot of income from American customers if that is somehow relevant.
Do countries get upset if you are choosing to live a modern nomadic lifestyle and are a non-tax resident of any nation and go after you?
I knew a guy who did this years ago mainly between just New Zealand and Australia by staying under six months in each but I lost touch with him.
Please feel free to chime in with your thoughts and feedback.
Does this idea seem plausible or do I have flaws in my premises?
With thanks
Sean