By
Gary Scott
The true story below shows how
to gain fun international tax loopholes.
A bite of chilled wind sweeps
the broad Andean marsh. A million sun diamonds sparkle and dance on a frying pan
lake below. Damp odors smell, ooze, mud and grass. The silence sings in harmony
with the taste of my blood, my senses concocting strange mixtures in the altitude-thinned
air.
August 23rd, 1997 on a mountain
slope overlooking the LLanganatis Valley. We stop, stand on a small, slippery
cliff and look back into the sun filled Andean Valley below. As I walk, breathing
heavily rarified air at the 14,000 feet altitude, I rethink how this trip has
evolved. Merri and I, along with two medical doctors and friends, are here to
walk into the sacred valley where western man has never been invited before. Our
international business created this incredible adventure and business opportunity
with wonderful tax benefits too! I share next page this example of how international
business can bring you outstanding tax benefits, adventure and fun as well!
How to Gain Fun International
Tax Loopholes Case Study
This first lesson comes from
our course International Business Made EZ and shares how structures that reduce
or defer tax and protect your wealth can and will change your life for the better.
This first study on how to gain
fun international tax loopholes shows how Merri's & my international business
story not only helped us attain our international tax goals also created a most
fulfilling experience. This is far more exciting than my business in Malaysia
when our airplane lost an engine over the jungle and we had to land in a tiny
field and eventually get back to civilization.
Ecuador is a tiny South American
country less than four hours from Miami which has one of the most incredible diversities
in the world. Because Ecuador sits on the equator but is a mountainous country
it has the same bio-diversity as all of the territory from Ecuador to the Arctic
Circle.
The country is a tourist delight
that offers sights, sounds and goods at prices so low it is hard to believe. As
an emerging economy, the place is ripe with business potential. Everyone in Ecuador
wants things from America and from Europe. The Ecuadorian Stock Market is at rock
bottom prices. This frontier market is way undervalued. When, from my research,
I learned all these facts I immediately started taking groups there for seminars
on real estate, business and investing in Ecuador and South America. I figured
I, along with my readers, could make a small fortune as I helped my clients and
also helped the country of Ecuador. Benefits I would gain beyond this, I could
never even begin to imagine! I have gained adventure, much better health and potential
for longer life, plus one of the best tax and asset protection shelters that can
ever exist.
Gain Fun International Tax Loopholes
Story
After my first two journeys to
Ecuador, I became fascinated with the fact that some of the valleys in Ecuador
have special qualities that enhance longevity, with residents reaching extreme
ages.
Further research brought me to
an article in the January 1973 National Geographic entitled, "Every Day Over
100 is a Gift" written by Dr. Alexander Leaf. This article was written on
the valley of Vilcabamba, where 1,080 people per 100,000 lived on average to be
100. We can compare this to three per 100,000 in the United States. More important
those who reached a ripe age (even over 100) remained vital, sexually active,
worked and participated regularly in the community.
This National Geographic article
shows pictures of some of the world's oldest people. For example, a picture featured
one of Vilcabamba's patriarchs, Miguel Carpio, getting a haircut. Carpio was aged
123 and said, "I would not like to be young again, but if I could take 15
years from my age (be 108 again)- wonderful!" Another picture showed
Hermelinda Leon, aged 94, who
labors at the Vilcabamba bakery. The cover picture was a trim Jose Roa who at
87 years slogs daily through Ecuadorian ooze to make adobe.
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Gain Fun International Tax Loopholes Crossroads
We later learned from a happenstance
introduction that there were more than one such valley where conditions allowed
the residents to live exceptionally long lives. These valleys offered not only
ideal living conditions, but special waters acclaimed in many global scientific
journals. It is always news especially to the immense group of Baby Boomers any
subject to do with health, longevity, spas, etc.
This greatly peaked my curiosity
and excited me. I smelled valuable information for my readers and extra profit!
There was knowledge about these valleys I wanted to know and share with my readers.
Special Valleys
Further research helped me understand
that the longevity was waning in many of the valleys because of pollution and
altered life styles, but there was at least one unoccupied such valley where no
westerner or even outsider had ever been. I felt that there might be excellent
potential in such a valley for a spa or center where people could learn about
ways to live longer and have better health.
Gain Fun International Tax Loopholes
Luck
Through extreme good luck, I
was able to meet the head of the villagers who had protected this valley for centuries.
Because of some things we had done to help the village we were told a remarkable
500-year-old prophecy, we told that the village was now able to open the valley
to us and then those seeking health and those who want to learn the spiritual
value of the valley.
First Time to Gain Fun International
Tax Loopholes
This was the first time these
protectors had ever taken any outsider into the valley. Rather than disclose information
on this valley, hundreds were enslaved, tortured and killed over the centuries.
The affair was one almost of
foreboding. I cannot explain why I felt this way rather than thrilled. The village
held a special meeting of the protectors. I discovered that even Ecuadorians were
not allowed to know the location of this valley, only the medicine men. We started
our journey at 4:30 a.m. riding up into the mountains to a hiking point with the
six llamas that would carry our food, two young boys to herd the llamas, a cook,
the Taita Yatchak, the spiritual leader of South America, and his son and daughter.
We began hiking at about 10,500
feet, tramping through deep Alpine marsh for six hours as we ascended to 14,000
feet. Here we drank from the head waters of the Amazon and then descended straight
down (4,000') a hidden mud animal trail for three hours into a virtually impenetrable
cloud forest, ripped by thorns, cut by razor grass, soaked, caked in mud.
By the time we arrived in the
valley, it was just minutes before dark. We were fatigued by the high altitude,
bone weary from our packs (which had seemed to add dozens of pounds as the day
went by) and aching in every muscle and bone from fighting all day with the sucking
mud (which had regularly pulled off our boots).
We stayed in a thatch hut, sleeping
on grass, no heat, no running water, no nothing. The next morning, surprisingly
enough, we all felt wonderful! We explored the valley which is perpetually wrapped
in mist and fog. We swam in small icy, deep blue lagoons and did ancient exercises
while the Yatchak talked with us. We were continually cold, wet, dirty and cramped-all
12 of us in this tiny hut with an earthen floor.
I cannot describe this except
to say that none of us had ever had so much fun. There is something about the
valley that I cannot explain yet, but even at times when we were really worried
about some of the party who had gone into shock from fatigue, there was never
a moment of regret.
We discovered a magical quality
to this Sacred Valley and after our return have found that some powerful emotional
and physical things have happened to us all. Merri and I, along with the others,
feel stronger, more alert, more positive, more active and yet more serene than
ever before in our lives.
This was an incredible adventure,
plus it created the perfect business opportunity for the perfect tax position,
that brought the ultimate fun international tax loopholes.
Here is the tax part! Merri and
I are doing all this in a 50% partnership with the Ecuadorian village. This will
help protect and preserve the Scared Valley forever, will employ many indigenous
people in the area and do wondrous things for the poor in Ecuador as well as enormously
benefit the people who come, enjoy and learn at this center.
This venture also creates a perfect
tax shelter because it will be owned and operated by 50% non-U.S. shareholders.
This means that the company will never owe U.S. tax. This business won't even
have to report to U.S. taxing authorities. If I plan my affairs correctly, my
reporting as a U.S. citizen will also be minimal and I will be able to enjoy ownership
of a company that can build up substantial reserves and value without creating
any U.S. taxable events whatsoever. I explain how and why below.
Seven Gain Fun International
Tax Loopholes Taxing Levels
There are five ways to add asset
protection.
Gain Fun International Tax Loopholes
Structure
#1:Overseas Bank account
#2: Overseas Shares and Mutual Funds
#3: Overseas Life Insurance Policies
#4: Overseas Corporations
#5: Overseas Trusts
Gain Fun International Tax Loopholes
Levels
Most investors never need more
than the first two or three of these levels. Those who wish to conduct overseas
business may need a corporate structure and those with substantial assets (millions)
may in limited circumstances where one really wants to give an asset away use
a tryst.
At the international business
level there are seven legal ways to start.
#1: Sole Proprietorship
#2: U.S. Corporation
#3: Overseas International Business Corporation or Limited Liability Company or
Limited Partnership.
#4: Foreign Sales Company.
#5: Overseas Trust with Overseas Company.
#6: Multiple Overseas Corporate Structure.
#7: Overseas Corporate Structure with Genuine Non U.S. Shareholders.
Gain Fun International Tax Loopholes
Review
This site reviews all of these
structures and when each works best. But whenever it is possible to attain, the
seventh structure is always the best from a tax and asset protection point of
view. This generally is the best from a business point of view as well because
it means you have someone abroad helping you with your business.
Merri's and my new business in
Ecuador is exactly this situation. We now have business partners who will help
us run our business and provide valuable knowledge. This assistance is invaluable.
We could not do this business without their help and involvement.
The tax key is that any business
owned 50% or less by a U.S. person and 50% or more by non U.S. persons pays no
U.S. tax. Such a company does not have to even file a U.S. tax return.
Gain Fun International Tax Loopholes
Warning
This is a complicated law, filled
with land mines and I would not hope to understand nor explain it all. Instead
in this lesson I have asked my tax attorney to explain the legal aspects of this
tax law. I will add my comments along the way to help you understand more in lay
terms.
Before we look at the legal aspects
let' answer the question, why write about all this business stuff in Ecuador.
The answer is that the best tax and asset protections only work if they are involved
in some legitimate lifestyle change. In other words if you set up an overseas
structure and hire an attorney or someone to be your partner, according to the
law you don't really have an overseas partner, etc. You must have a genuine legitimate
business and real partner who is financing or working at the business with you.
So the key to most tax reduction
and asset protection systems are based on a life style.
Why Not? Gain Fun International
Tax Loopholes
If you are doing something you
love your chances of success improve. For example this business in Ecuador has
been one of the most fulfilling steps Merri and I have ever taken. The love, the
care, the friendships that have been created in this journey are beyond description.
None of this would have happened had we not been out there building our business.
Second, the adventure and fun
is just outstanding. Just to be where no other has been before. This is totally
unique.
Third, what we have already been
able to do in the way of employing indigenous people in Ecuador and in helping
the village has been incredibly heartwarming and gratifying.
Fourth, the knowledge we have
already brought to our clients has been wonderful. We have received so many rave
letters from happy clients we have taken to Ecuador. Fifth, our horizons have
been so broadened that we are still trying to regain our equilibrium.
Sixth, we will make a fortune
from this as we help the village and our clients more and more.
Seventh, we'll gain fun international
tax loopholes!
Look for everlasting wealth instead
of just how to gain fun international tax loopholes.
Everlasting wealth means you'll
never burn out, always have fresh and invigorating ideas and the desire to do
more and more. This is what assures that your wealth will be forever.
Get your life in order, do what
you love and then making sure the legal stuff is better as well. This is the way
to gain fun international tax loopholes.
Know that around any next corner
your adventure (in your own terms) and opportunity is waiting for you.
Good global business and global
investing!
Gary
P.S. Learn more about how to
gain fun international tax loopholes in the correspondence course International
Business Made EZ at GaryScott.com
Real international business is
fun and can bring tax advantages and asset protection. Gary and Merri Scott gain
tax advantages as they enjoy developing their healing center in Ecuado
