An Additional Tax Evasion Scheme By The Offshore Outsourcers
The Offshore Outsourcers are motivated by the desire to support USA operations with offshore personnel which are "NOT" subject to Federal, State, Social Security, Medicare taxes. In order to be able to avoid paying the matching Social Security, Medicare and unemployment insurance many corporations have opened offshore subsidiaries or engaged proxies to do so for servicing USA based business, that if done within the USA, will be subject to all taxes.
Not satisfied with the ill gotten savings obtained by illegal activities, now these “Prestigious Ones” are compounding the crime by a scheme to avoid paying Federal Income Tax.
The first step in the scheme is to create profits overseas (that is why the emphasis to transfer offshore as many jobs as possible).
The second step of the scheme is to bring back to the USA those profits without paying any Federal Income Taxes. The IRS rules allows the firms to defer paying Federal Income Tax on overseas profits till such a time as those profits are brought back to the USA. In order to evade this regulation the “Prestigious Ones” use the overseas profits to buy back the Corporation's Stock with the overseas currencies and then the overseas suppliers pay for services with the Corporation Stock acquired from the overseas profits, in violation of the intent of the law and its regulations.
This places consultants which are USA persons at a tremendous disadvantage as any USA based operation has to pay all taxes.
The “End Clients” using the services of “The Prestigious Ones” have become victims of this scheme by being associated to such illegal activities.
It is very true the old saying that Power corrupts and that Absolute Power absolutely corrupts. It is time for the Consultant and the End Client to by pass these "Prestigious Ones" which every day are looking more like ruffians and knaves.
Peningo’s solution to this problem is to bypass these “Offshore Outsourcers” and with the support of Peningo Systems Inc, contract directly between the Consultant and the End Client, thus, eliminating these ”Prestigious Ones” excessive Mark-ups and allowing for increased compensation for the Consultant while lowering the costs for the End Client.
To All Americans:
If you wish to voice your opinion, you are welcome in commenting to this post. If you wish to voice your opinion to a greater authority….Congress and/or your State Representatives, please go to the Peningo Advocacy Assistance Page.