Tax Havens

jcardial · #1 07-06-2006, 10:41 PM

If a poker player were to move to a tax haven (e.g. The Grand Cayman Islands) and play poker online there for the entirety of his income (for a majority of the year), would he be obligated to pay any income tax to the United States or the local government? Has anyone moved to another country to avoid U.S. taxes?

Gregg777 · #2 07-06-2006, 11:05 PM

As long as you are a US citizen you must pay taxes.

If you move to another country and renounce your US citizenship, then no, but that wouldn't be smart...

Blowup Doll · #3 07-06-2006, 11:21 PM

Of course you still have to pay US taxes, as do all expat workers. And if you renounce your citizenship just to avoid taxes, the IRS can still make you pay them.

spino1i · #4 07-07-2006, 12:44 AM

[ QUOTE ]
And if you renounce your citizenship just to avoid taxes, the IRS can still make you pay them.

[/ QUOTE ]

How would that work? Would they send over their goons to another country? ("you havent paid your taxes!")

Blowup Doll · #5 07-07-2006, 01:00 AM

[ QUOTE ]
[ QUOTE ]
And if you renounce your citizenship just to avoid taxes, the IRS can still make you pay them.

[/ QUOTE ]

How would that work? Would they send over their goons to another country? ("you havent paid your taxes!")

[/ QUOTE ]

Not quite. But any U.S. assets are fair game, as well as U.S. beneficiaries and heirs. You can also be banned from returning to the U.S.

I recommend reading Section 877 of the Foreign Investors Tax Act of 1966 before taking such a drastic step to avoid taxes.