Tag Archives: OFFSHORE COMPUTER

Saving Taxes in the E-commerce & the Cloud (Virtual) Computer World

cloud computer tax, tax planning, saving taxes, international tax planning,

E-commerce businesses are saving taxes with cloud computer tax planning.

E-commerce tax planning and Cloud tax planning uses unique tax laws.  As a result, saving taxes in this century’s cross-border business environment is easier than ever.  

Small businesses are saving taxes with eCommerce tax planning and cloud computer tax planning.  

The cloud has level the playing field between small business and big business.  Amazon is leading the way.

 Small businesses can benefit from cloud computer tax planning.  

Cloud tax planning allows big state and federal tax savings.  A popular term for this is “third wave” tax planning.  The second wave was most of last century and a little of the 1800s.  The first wave is from  10,000 BC to the late 1800s.  This explains the loophole.  Our tax laws were designed in the early 1900s.  While the laws are more complicated, the basis framework is unchanged.

We all have heard people say that things are not what they used to be.  This is particularly true in American business.  In 1910, electricity was not in the White House.  Cars were laughed at with jokes like “Get a horse!” 

Phones were rare, and there was no air travel.  U.S. E-commerce tax laws are written for last century’s business.  E-commerce tax planning provides significant tax savings.   Here is what has gone wrong for the Government and good for small business.

  Who is this man?    He is Robert Lee Doughton.   He was the powerful chairman of the U.S. Congressional committee that writes the tax laws.

This man designed and wrote our international tax laws. His education was only high school. His father fought with General Robert E. Lee (General of the Confederate States of America).  He was named after the General.  He was born in 1863. His view of international commerce was via steamship

In 1939, he wrote the international tax laws that govern today’s international taxation in America.[1]  Most of the congressional representatives who wrote the 1939 tax code were born before 1900.    Their view of the world was what you see in many silent movies … and so was their tax law.

Their idea of technology was steamships and the telegraph.  It is this world vision that governs how the U.S. taxes international business and investment today.

On this link, you can view my forty-minute of my presentation of the California Society of Certified Public Accountants on profiting from Congress’s failure to innovate.

Successful E-commerce international tax planning revolves around a major flaw in American tax law caused by the speed of change (more on this link).  

If you need to up the quality of your tax planning, then contact me, Brian Dooley, CPA, MBT, at [email protected]

[1] Congress renamed the tax code in 1986 to the “Internal Revenue Code of 1986.” As I wrote this, I realize that 1986 was just at the end the “second wave” of business. The tax consequences of leaving the economics of the second wave and moving into the economics of the third wave are discussed in this video.

 

Tax & Business Planning for an Offshore International E-commerce Computer Server During a Natural Disaster

internet tax planning, saving taxes, cloud tax planning ,

Internet tax planning for the international business is just a click away from big tax savings.

Seems like unexpected natural disasters are occurring more often. The international ecommerce tax planning wants a tax haven.  Yet, the loss of an e-commerce website for a few weeks is like a store being flooded.

Yet, you do have an inexpensive solution.  Cloud computers can provide a redundant system and save you taxes. 

For example, privately owned e-commerce businesses are saving taxes by hosting their store on a foreign computer server.    These businesses sell an internet product such as an e-book, video, database, entertainment and other personal services.

For example, an e-commerce site that booked travel arrangements is much like last century’s travel agent.   With proper planning and corporate formation, this type of an e-commerce business earns foreign source personal service income (that of a travel agent).  If your tax team has properly planned this, the income can be earned tax-free by a foreign corporation.

We have read about firms that are like Google, Apple, and General Electric legally avoiding taxes; but what happens when there is a natural disaster?

I was at the Apple Store yesterday in Newport Beach, California.  I wanted to get Applecare for my iPhone.    The Apple Store is located in a large outdoor mall.  As I approached the store I saw the Apple employees hanging around the front door and the Apple store was empty.  A fire nearby had caused a loss of electricity for the mall (of about 100 stores).

The young millennial Apple employees were lost or as one said, he was a fish out of water.  I told them what I needed and they debated among themselves what I should do.  None of them knew until 40-year-old supervisor spoke up… use paper!!!

The staff was amazed at such out of the box thinking but still looking scared.   We walked inside and the supervisor handed a millennial a credit card slip and the mechanical machine to process the charge.    To no avail, it was out of their capacity.. which brings me to your tax and business planning.

To make wealth with an offshore ECommerce business you need redundancy.  You need a second system that can take over.  For example, the Bahamas is now the go to place for an offshore e-commerce business.  Hurricanes and storms are common. Canada allows computer hosting without the creation of a tax situs.

You may want to consider to have your  Bahama corporation own the computer server in the Bahamas and with a backup cloud server in Canada.   If you need help establishing your e-commerce business, then contact me, Brian Dooley, CPA, MBT at [email protected]  

The Best International Taxation Planning Audiobook and Kindle for the Entrepreneur

Chairman Robert Lee Doughton of the Congressional House Ways and Means wrote today's tax laws. , This Civil War baby wrote today's tax law. High school educated in the 1870s!

Chairman Robert Lee Doughton of the Congressional House Ways and Means wrote today’s tax laws. , This Civil War baby wrote today’s tax law. High school educated in the 1870s!

Just how good is Congress doing?.  Today’s tax laws follow the blueprint designed by this man, named after General Robert E. Lee.   Born in the 1860s, his view of the World is in today’s tax laws.  Text messaging was via the Telegraph.

His ancient concepts have created legal loopholes for the cloud based business,  E-commerce small business, and the business selling merchandise without the need for inventory.

Take a three-minute test drive of the audiobook below, at the end of this article.    

For example, did you know that by placing having a British Virgin Island corporation own your website, you may reduce or eliminate U.S. taxation?  You will learn how this is done in my book.

The audiobook edition of  International Taxation in America for the Entrepreneur,  available at Amazon on this link along with the paper and Kindle versions. My Book that is changing tax planning for the E-commerce and cloud-based business.  Easy to read in less than two hours.  Learn our tried and true innovative tax plans with my book,

Myths that restrict your offshore tax planning include:
1. Income deposited into a foreign bank account is foreign source income. Place of bank deposit does not determine so the source of income.  Deposits into U.S. banks can still be foreign income and deposits in a foreign bank can be U.S. taxable income. 

2.The “Dutch Sandwich” helps U.S. firms avoid U.S. taxes.  This ancient tax treaty plan is used to prevent European tax.  E-commerce and cloud base businesses do not need to use tax treaties to avoid taxes.
3. Switzerland is a tax haven.  Switzerland is a high tax country.  Each canton (which is similar to a state) determines the income tax for businesses in that canton. There is no Swiss federal income tax.  

Please enjoy a sample of the audiobook below by clicking on the play button.