problem with taxes
Today there's no work at the office, so I am focusing on my tax problem, given that I am being paid and that, in theory next year I should pay taxes on what Igot paid, unless I want to risk sanctions or even worse the financial police taking my laptop from me, to investigate me. And then it's goodbye to my systems, because if the Italian police takes them, then the world has them.
But the big problem is that, since very few retail traders ever make any money, and even fewer rent their trading systems, there is no clear category for me to fit in, and certainly, given my total ignorance, there is no legal/tax category that I know of. And certainly I do not know nor have heard or read about a single Italian who is in my situation.
So I'll now keep googling, browsing and posting, both in English and Italian.
http://www.google.com/search?hl=en&source=hp&q=best+way+to+evade+taxes&aq=f&aqi=&aql=&oq=
This guy is smart, but his solutions are still too complex for me and I don't make enough money to adopt them:
How to Save Taxes Without Going to Jail
Wikipedia as usual is a must:
http://en.wikipedia.org/wiki/Tax_avoidance_and_tax_evasion
Tax avoidance is the legal utilization of the tax regime to one's own advantage, to reduce the amount of tax that is payable by means that are within the law. By contrast, tax evasion is the general term for efforts not to pay taxes by illegal means.
Which reminds me that "tax avoidance" is not only legal but it would suit my avoidant personality:
http://en.wikipedia.org/wiki/Avoidant_personality
People with avoidant personality disorder are preoccupied with their own shortcomings and form relationships with others only if they believe they will not be rejected. Loss and rejection are so painful that these individuals will choose to be lonely rather than risk trying to connect with others.
Hypersensitivity to rejection/criticism
Self-imposed social isolation
Extreme shyness or anxiety in social situations, though the person feels a strong desire for close relationships[10]
Avoids physical contact because it has been associated with an unpleasant or painful stimulus
Avoids interpersonal relationships
Feelings of inadequacy
Severe low self-esteem
Self-loathing
Mistrust of others
Emotional distancing related to intimacy
Highly self-conscious
Self-critical about their problems relating to others
Problems in occupational functioning
Lonely self-perception, although others may find the relationship with them meaningful
Feeling inferior to others
In some more extreme cases — agoraphobia
Utilizes fantasy as a form of escapism and to interrupt painful thoughts[11][12]
Many of the above apply to me, as it is for most personality disorders. So, given my overall "avoidant" personality, I could be good at becoming a "tax avoidant" person.
So let's read up on it:
http://en.wikipedia.org/wiki/Tax_avoidance_and_tax_evasion#Tax_avoidance
http://it.wikipedia.org/wiki/Evasione_ed_elusione_fiscale#Elusione_fiscale
L'elusione consiste nel falsificare la natura dell'operazione con lo scopo di beneficiare di minori imposte. A differenza dell'evasione l'elusione non si presenta come illegale; essa infatti formalmente rispetta le leggi vigenti, ma le aggira nel loro aspetto sostanziale frustrando il motivo per il quale sono state approvate...
Actually in the Italian wikipedia "tax avoidance" is treated almost as something illegal:
In Italia, esiste una norma antielusiva cosiddetta generale: l'art. 37-bis del D.P.R. n. 600/1973, secondo la quale sono inopponibili all'amministrazione finanziaria gli atti, fatti e negozi, anche collegati tra di loro, che siano contemporaneamente: privi di valide ragioni economiche, diretti ad aggirare norme tributarie e volti ad ottenere una riduzione del carico fiscale altrimenti indebita.
L'elusione è, quindi, un fenomeno che deve necessariamente e contestualmente contenere le tre componenti previste dalla norma:
l'assenza di valide ragioni economiche;
l'aggiramento di obblighi e divieti previsti dall'ordinamento;
il conseguimento di un risparmio fiscale altrimenti indebito.
Al verificarsi di tali condizioni, l'amministrazione finanziaria può disconoscere l'effetto fiscale riveniente da tali operazioni richiedendo al contribuente le maggiori imposte che avrebbe pagato compiendo l'operazione direttamente senza l'aggiramento elusivo.
http://en.wikipedia.org/wiki/Bank_secrecy
Bank secrecy (or bank privacy) is a legal principle in some jurisdictions under which banks are not allowed to provide to authorities personal and account information about their customers unless certain conditions apply (for example, a criminal complaint has been filed[1]). In some cases, additional privacy is provided to beneficial owners through the use of numbered bank accounts or otherwise. Bank secrecy is prevalent in certain countries such as Switzerland, Singapore, Lebanon and Luxembourg, as well as offshore banks and other tax havens under voluntary or statutory privacy provisions...
...European countries had long complained that banking secrecy provisions in countries such as Austria, Lichtenstein, Luxembourg, and Switzerland favored tax evasion by their citizens, particularly the citizens of countries such as Belgium, France, Germany and Italy which border one or more of those countries. In 2009 tensions reached a height and concerned countries (supported to some extent by other countries) raised the issue at the OECD and the G20. As a result, essentially all countries agreed to implement tax treaties that would facilitate the exchange of banking information in case of suspected tax evasion...
I mean, I have an account in luxembourg from when I worked there. Should I use it? This would be in the realm of tax evasion, "efforts not to pay taxes by illegal means".
http://www.panamalaw.org/jurisdictions_to_avoid_luxembourg.html
Luxembourg being an EU country has had to make some concessions over recent years regarding bank secrecy...
... Wait it gets even more absurd. An EU resident may instead of paying withholding taxes to Luxembourg can authorize the bank to disclose tax information to the taxation authorities in their home country. Does this sound like an offshore tax haven? It should be pointed out here that an EU resident may, instead of paying withholding tax in Luxembourg, authorize their bank to disclose information concerning their bank account to the income tax authority in their country of residence. Does this sound like an offshore tax haven and privacy jurisdiction – of course not. Best look elsewhere.
Wow, these tax web sites are really quick to give you important information right away, without any bull****. This is really nice.
However, you know what? I am going to stay at home. Physically and financially. Forget foreign countries.
However now the problem is tax avoidance or tax evasion or simply neither and I pay normally?
The first problem is find out what my category is, and what taxes I should pay. This is a nightmare.
But no one needs me yet, so I'll keep googling this problem.
After hours spent on it today, and days in the past, I give up. I will spare my eye-sight for more important things, and when the time comes (in about six months), I will go to a tax advisor and let him handle this thing. In the meanwhile I'll keep getting paid on paypal until they tell me i have reached the limit.
Actually let's just read up on paypal's limit:
Common Reasons For Your PayPal Account To Become Limited
If your PayPal account becomes limited, you won't be able to use the account until certain verification steps are completed. You can find specific information on why your PayPal account access was limited and how to restore access by logging into your PayPal account. Typically, you are asked to update account information, fax or upload proof of identification to PayPal. Hopefully once PayPal has received the information requested, your PayPal account will be restored.
Reasons for a PayPal Limited account:
Size of withdrawals
Some proxies & IPs of unsupported countries
Too Many refunds/chargebacks
Amount of money going through account
Credit/debit card that does not check out
Types of products being sold
Website Content
Tips to prevent your PayPal account from becoming limited:
Do not open a new account and receive a large sum of money right after verification.
Do not login to your account from multiple IP ranges.
Do not frequently modify your account information.
Do not add or remove credit cards on your account frequently.
When you receive a large sum of money do not try to immediately withdraw the money, or send it to another account because you might suspected of having received fraudulent funds.
Make sure your website is in compliance with the latest PayPal policies.
While you should keep a small balance of money in your PayPal account, never keep more money than you can afford to loose.
There's issues raised above and discrepancies:
1) I am assuming that these rules are partly for your own protection, but also partly for anti-money laundering regulations.
2) he says "do not withdraw money", but also "keep a small balance": how can i do that if I get paid on it?
3) "Size of withdrawals": which size is right?
4) "Amount of money going through account": which amount is right?
5) where did he get this information? Is there a clear page on paypal's web site?
Oh, wow. Check this out... what he writes a bit later on that page:
I personally had my PayPal account status limited for over a year. I sent several emails and tried to appeal their decision. It didn't do any good. I kept getting the standard "Dear Jane" letter. PayPal didn't tell me what I had done wrong just that my account status was limited and I should refer to their policy to see why. I read the policy over and over again and I knew that I had met all of their standards.
PayPal also kept the money that I had in my account and I couldn't have access to it. Prior to this I had used PayPal to process credit card payments for 5 years or so. I just finally gave up. A year after the account limitation I called them on the phone and tried one more time. My account was immediately reinstated. I had to resend them a utility bill and my drivers license. I never knew what the problem was. I think it was some sort of mistake and I'm happy that it got cleared up though. During the period that I could not accept PayPal payments I missed out on a lot of business because a lot of people like to use PayPal to buy products on the Internet.
This would be a good enough reason to stop using paypal immediately, but are they still the way they were back then? It was written in 2007.
I think they are. I tried transfering money to a US account, just 100 dollars, and they stopped it, and asked for a utility bill. So I guess this paypal thing is only good for receiving and wiring payments in the hundreds. When it gets bigger, this is no good and it gets dangerous.
Here's a bunch of links on paypal's "limited account" problem:
http://www.google.com/search?q=limi...vnsfd&ei=pkVKTo-gOcfYsgaVsamnBw&start=10&sa=N
I think I should get paid on a regular bank account, also because paypal charges me up my ass in commissions. I lose 5% of the profit just in commissions.
This is it. This website will help me make my final decision:
PayPal Complaints - User submitted gripes about the world's largest merchant services provider
Limited account and unrealistic system
Limited account and unrealistic system
by PPC Submitter on August 13, 2011 at 2:44 PM
Posted In: Limited PayPal Account
I just moved to China to work recently and used my Australia PayPal account to pay for a service I have been using for years. PayPal must have some how detected I am at different location and froze my account altogether. This is a surprise to me because in the past years I have accessed this account from UK and Malaysia without any problem.
After learning from my service provider the payment was frozen, I quickly went onto PayPal and did whatever they asked me to unfreeze my account (changing password, changing security questions… etc). The most ridiculous one was asking me to add in another credit card. As I only have one credit card, I went to Profile page, tried editing my details as they told me to, and still did not get my account unfrozen.
I wrote an email to them from my account, and only got a what seems to be formatted replies from their selection of templates. After replying to that email telling PayPal customer service my issue 2 days ago, I have yet to receive a response. I tried calling their 1800 number but couldn’t get through, and found a proper customer service number from another website, the number (02-8223 9500) is no longer in use.
I tried registering a new account but they won’t accept it because they detected it’s the same credit card for another account (which is the one they froze).
Submitted By:: Happy T
Location: Melbourne, Victoria, Australia
My mind is totally made up, after looking at this page:
http://paypalcomplaints.org/limited-paypal-account/
Have you ever heard of a bank account being limited? Nope. Paypal? Yes, all the time. Advantage? I can buy things more quickly on ebay and it has great online banking. Disadvantage? Occasionally people complain that their account has been blocked, and they charge you up to butt (5%) for most transfers, whether going one way or another.
So now the next question is where to get paid. Given that I have several bank accounts, I could definitely get paid on all of them, but that's not smart. An inactive bank account receiving a transfer from other people will get you even more in trouble than just one account receiving all transfers.
I will get paid in an account I've had and used for 10 years, and where I've been trading. Now the only thing to worry about is how to still issue the invoice and how to create it on paypal, but in a way that it doesn't get paid there.
[...]
https://cms.paypal.com/cms_content/US/en_US/files/developer/PP_Invoicing_Users_Guide.pdf
Ok, got it. I will send the invoice, and, right after having sent it, I will mark it as paid. Then I'll write my IBAN number on the invoice itself.
