Forum Moderators: phranque
At my "other" job (not for much longer) they started telling us if we want help in our design groups we have to hire someone in India. They opened a site over there. We are an engineering company in the U.S. They work for about 20-25k a year over there and are doing sophisticated engineering jobs that pay up to 100k at my work. A lot of people are not happy about it because, quit frankly, they are out of phase with us time wise and we can't get things done if we can not talk with them. When it happens to you it really makes you think about it a little more.
That’s great that their country is doing well with technology and growing (I am not being sarcastic). However, for companies to get all of the benefits of running a company that have been fought for, lobbied for, and paid for by U.S. citizens and then to say, "these guys are too expensive lets hire some people elsewhere" seem a little to easy. Are the people in India getting this huge chunk of taxes taken out of their checks? I give up ~40% of my pay just to work as an employee in the U.S.
So if the corporations can reap the benefits of the U.S. and say they are "global" then how can an SEO benefit from this? Some SEO's just have a server over there and wire there money to that account. There are lots of big businesses (people that work with Bush for example) that have offices there but don't really work there.
Is this legal? What are the risks? My big question is. If your money is wired offshore how do you get it back into an account over here? You can't just have income in an account and not pay taxes on it. Can you?
I think just having a server over there and wiring money over here is illegal. I believe the big boys who do this use a little more financial savvy than that.
About the Out-Sourcing Thing:
I really do not know what to think of that. I applaud india for being more innovative than us but as the same time I see the beginnings of the US fall from economic power. The Economist already predicted it: China and India will rule this century.
The power of the majority of the American workforce was that we had basic education, were able to use computers, and could speak english. Now the whole world can do that... so what are we?
I actually outsourced via elance a few months ago. Why? Because all the other bids looked like they were from scriptkiddies who realized it would be a fast way to get beer money. The indian scripter I chose kicked ass, excellent job all around.
So I don't know what do think. I cannot cry foul ball because they play our own game better than we do. At the time same I really hate to see the lives of good citizens ruined because someone else with a lower cost of living (and standard sometimes) can do I job for $25k that you would demand $100k for.
To be blunt, I think what you're thinking of is plain old tax-evasion, and that is illegal. Will you get caught? I can't say. Should you do it? It's your call.
Trust me i am an indian citizen but live in US and i fall in the highest tax bracket . I pay full US tax (hundreds of thousands of dollars) , if i know i can play like this i will just put the money in my indian bank account and smile :)
Regarding your outsourcing part , its discussed to death here and you dont want to start one more thread :)
There are several important points, which you have to remember:
1. e.g. Byelorussia guys have to pay about 85% as a taxes
2. They really pay nothing because they use third-party countries too save their money
3. You can follow this way easily
4. It's illegal. If IRS figures out that you have strange accounts abroad they can prosecute you
5. There is no way to figure it out if you pick right country :)
6. There are counties with have very poor and corrupted national IRS so you can make you accounts on a fantasy names.
So. You can save your money by this way but it's illegal. If IRS catch you you will have a lot of free time :)
Foreigners do it sometimes but it's also illegal... in their countries. Corruption allows them to get away with it.
Anyway average income in Byelorussia is less then $100 a month. So you can hire pretty good SEO guy for... about nothing.
I hope I’ve made the picture clearer :)
and i fall in the highest tax bracket
Some day I will too :P
I am sure you will ...
Restated, although you will be breaking the law, if you do it properly and carefully you will be virtually uncatchable.
It takes an adventurous disposition for sure.
I know a lot about it, although to date I haven't done so myself. A while back I was just kinda fascinated by the subject, more into researching what really does on behind the scenes of international business than actually evading taxes myself...
There are some books on the subject. I remember one called 'Hide Your Assets and Disappear'. Another great book is called 'Metal Men: Mark Rich and the $18 Billion Scam'. It's about that guy Clinton officially pardoned seconds before leaving office. Fascinating stuff.
Pay cash when you buy your books on the subject (low-tech eccentric used bookstores recomended) and don't check them out from the library
:o)
