Tag Archives: internet tax planning

By Far, the Best International Tax Planning Book on the Planet

Here are the first few chapter of my easy to read book International Tax Planning in America for the Entrepreneur.   The book is a quick two-hour read with little tax jargon.  You will quickly learn the fundamentals of international taxation.

The book explains the unique tax savings for the web based business, tax planning for importers and exporters and the best tax structure for the foreign investor coming to the U.S. 

You can get the book on Amazon on this link.  The Kindle is only $9.50  (get the Kindle App for the PC on this link).  The book is also available in paper and audiobook. 

International Taxation in America for the Entrepreneur is the fastest tax answering publication in America. Both the  Kindle and PDF edition have our exclusive quick search function. Just type your topic and find the answer to any international tax planning question.  The audiobook is perfect for those on the road and traveling. 

No other foreign tax book is updated via the internet. You can be assured that you have the best foreign tax planning book on the market.

Cross Border families have special needs because America’s laws differ from every other country. The multi-national family risks paying taxes in more than one country.  

 A cross-border business has a similar problem.  Multi-national businesses often experience double taxation on one item.  American tax laws are different from the rest of the World.    

Using  “plain English” my book provides solutions to issues regarding cross border taxation.  For those looking for advance tax planning, the hundreds of footnotes and hyperlinks to court cases and tax planning articles are just a mouse click away.

Small Business Tax Planning and Strategy for Robots, Apps, Video Streaming and 3D Printing

21st Century business is nothing like 20th Century business.  It is as easy as comparing the cell phone you owned in 1999 with your smartphone now.

The tax planning on the internet is that 1999 style tax planning.  You know, that year-end meeting where you are told the same stuff year after year.  But you will never achieve the 14% tax rate paid by Big Business if you think like a small business (more on the 14% tax rate here).

The business news headline “Bank Of America Opens Branches Without Employees” got my attention.  B of A also has one of the better smartphone apps for online banking.  The important tax planning and business trend are “no people”.  Instead, machines that work 24/7 with no sick pay, employee suites, or family leave.

Next, Ford Motor Car announced it is using 3-D printing in manufacturing instead of robots, to produce much of their cars.  Ford is not the only big business moving beyond Robots.  Redbox (the DVD rental kiosk franchise) is closing thousands of kiosk and is streaming the videos.

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Cloud Continues to Disrupt Business – 1,000s of Robots Laid Off

International tax planning compares last century's tax laws to this century's business. Then , it exploits the differences.

International tax planning compares last Century’s tax laws to this Century’s business. Then, it exploits the differences.

Using your knowledge the 1990s and the beginning of this Century will cause you to pay more in taxes and it can put you out of business.

You have to compete with the future. Blockbuster’s demise is old news from the beginning of this century.   Just ten years later, the killer of Blockbuster is dying.   Redbox has closed (laid off) 1,000s of it robotic DVD rental kiosks in the U.S.

 In 2015, it closed all of its DVD rental kiosks in Canada.   Netflix and other video streamers are slaying the king of the DVD rental kiosks. Redbox’s $1 a night became too expensive. Netflix is $10 a month, and you can watch as many hours as you want with 50,000 choices.   With Redbox, you had to rush to the kiosks to return the DVD.

American international tax laws were written and were designed for a 1930 economy.

Offshore tax planning compares the out of date concepts in our tax laws to 21st Century business. Then, it exploits the differences.  Your tax planner must forget last century’s tax planning and learn this century’s.  Even the first ten years of this century is partly obsolete.  

If this was 2005, you would not have a smartphone. Yep, no apps.  I don’t know about you, but I use my iPhone and iPad for business more than I use my landline and my computer combined.   

Great tax planning sees the trends and changes.

With the iPhone came the  streaming of music.  If the computer server hosting the music was located in the Cayman Islands, the income would be foreign source income and not U.S. source regardless of the location of the customer.

Look at banking.   Are ATM’s the next to be laid off?  Do you want to deposit your checks like this,  in the dark watching over your shoulder?

Internet businesses can decide who is going to tax them just by using the cloud.

Internet businesses can decide who is going to tax them just by using the cloud.

Or like this- At home with a smartphone app where it is safe. By changing your business, you not only survive, but you can also completely shift your tax profile.

For example, if you distribute a product, spend some time learning about 3D printing or using a fulfillment center.   If you have an e-commerce business,  consider streaming your product versus providing a mp3 file or a pdf file.  Internet tax planning starts with shifting the source of the income.

For some, it is merely a move to Nevada or Texas to escape California or New York taxation.  For others, it is outside of the U.S., such as Canada (yes, it is an internet tax haven) or Ireland.  By the way, California tax planning and New York tax planning just became more important.  State income taxes are no longer deductible. 

If you want to brainstorm your idea and dream about your future, then call me, Brian Dooley, CPA, MBT, at 949-939-3414 for a free one-hour consultation with you and your CPA,

Internet Tax Planning – Saving Taxes with the Cloud

tax planning, saving taxes, cloud tax ,

Saving taxes with the cloud-based business requires innovative tax planning,

Internet tax planning provides fantastic tax savings. 

The Internet-based business decides which country or state has the best tax advantage.  Saving taxes is easier than ever.  You will learn how to save taxes on this blog.

International e-commerce tax planning starts with placing your computer server in a low tax or no tax jurisdiction.  Web-based business tax planning provides big state and federal tax savings. 

To learn how big international companies are using the internet to legitimately avoid taxes, please view the California Society of CPAs 40 minutes seminar on this link or listen below on my blog Tax Talk radio show.  You can also download the show as a podcast from iTunes.    

Don’t miss out on our new e-commerce tax planning book.  Learn more on this link.
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U.K. and Europe’s Tax War on the U.S. Treasury Heats Up.

The Financial Times of London  reported that the Obama administration is continuing its protest of the gangster-like theft by the EU and the UK government’s.   This week President Obama told the EU to back off from taxing Apple (more on this link).

But if you can’t make your wealth, you need to take it from others.  This is called taxes.

As the socialist spending of the UK and the EU countries increase European poverty in France, Spain, Greece and Italy, the EU continues its raid on the U.S. Treasury.  

To get America’s money, these countries merely break the tax treaty that has prevents tax wars.  Each tax treaty has a “permanent establishment”  safeguard.  So, far the White House is silently allowing the English and the Europeans to win this war. 

The Financial Times of London reports, that European Commission is intensifying its attack on American digital and wealth companies.  The list includes, Skype, Netflix, Amazon, Apple and Google.   And why not?  All the U.K  and EU taxes will be paid by you and me.    Why? Will read a little more.  (Update Sept. 17, 2016: Microsoft has moved  Skype from the U.K. laying off all the British employees; Update Sept 19, 2016 the UK wants McDonalds to pay half a $billion despite the U.S-U.K. Tax Treaty). 

Since I first posted this article, the UK intimidated Starbucks to make a “donation” of million of dollars.  The EU has gone after McDonald’s fast food.  Maybe it is time for the U.S. to get tough.  We can save $billions by letting bringing home our troops in Germany.

The Times reports “The EU’s intensifying assault on big American tech groups has triggered mounting criticism in the US, including by President Barack Obama, of European protectionism.”  But there is more at stake.  It is money….lots of money.

The Raid on the U.S. Treasury

The Europeans and the British are simply ignoring the tax treaty with the United States. For a century, these treaties do not tax a foreign business unless they have a “fixed place of business” and a “permanent establishment” in the other country.  The EU and the UK is squeezing money out of American businesses by ignoring these rules.

The raid on the U.S. Treasury is from a flaw in U.S. tax law:  The U.S. is one of the few countries that taxes its businesses on their worldwide income.  EU countries do not tax  worldwide income.    Thus, by targeting American business, they know that Uncle Sam will be force to give them money.  And why not.. .it is the history old battle between the haves (USA) and the have nots (UK and EU).

(Learn how small international businesses are protecting themselves at the end of this article.)

When the UK and the EU violate the treaty and grab taxes from an American business, “foreign tax credit” law requires the US Treasury to pay the foreign income tax. 

 The U.S. Treasury needs U.S. companies to compete in the global market.  The  Federal, and state are about 43%.   While EU companies pay taxes at 25% and  foreign profits are tax free. EU firms have more money to expand into international markets and into their domestic markets.

The U.S. Treasury reimburses Americans their foreign taxes.  This is known as the “foreign tax credit” (American business pays tax at 43%  while EU firms pay tax at 20% to  25% and nothing on foreign profits).

 Congress Blasts EU for Raiding the U.S. Treasury, on this link, but does nothing. 

Starbucks is an example of the EU and UK successful raid on the U.S. Treasury.   Starbucks announced that it was moving its headquarters to Britain so that it can pay more taxes.  Yes, it is moving to increase their taxes which will be paid by us.  

By the way Starbucks and Amazon have both paid more than a $billion dollars in value added tax each year and every year to the UK and the EU.  But, these governments want more… they want all that they suck from you and me. 

 U.K. and E.U. international taxation is based on the location of the firm headquarters.  Starbucks headquarter is in Holland.  The Netherlands is one of the few European countries that provides a lower tax to  create jobs.  The Dutch tax laws are always in the news.  The U.S., U.K. and E.U. disdain Holland for its tax policy. 

Starbucks UK tax is paid by the American population.  Because the U.S. taxes everyone’s worldwide income, we all get a credit for the foreign income taxes we pay (the “foreign tax credit”). The British Government  knows  this.

Starbucks, after being bullied in the British press and threaten by the UK Government, gave up and move  its headquarters to the UK to pay more UK taxes. 

This week, the UK Government is bullying Amazon. As an American company, Amazon is protected by the US-UK Tax Treaty.  However, this protection requires the Department of the Treasury to say “no” to the UK.

Small business international tax planning

The advantage of being a small business is being small.  They do not have    1000s of employees in the UK and Europe.  So, small business with the help of a smart computer can run their operation from zero tax haven countries.

The two best are the Isle of Man (in the North Irish Sea) and the British Virgin Islands.  In third place are two U.S. tax havens – Puerto Rico (business and personal tax at 4%) and the U.S. Virgin Islands with a 90% tax abatement.
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