Forex and Taxation


This forum was the best fit the following question so… any and all advice is appreciated…

I am an Australian Citizen. Tax on Capital Gains (investments inc FX trading) is 50%.

For tax minimization, am I best running my bank account and therefore my trading through another country, such as Hong Kong or Zurich which have a more appealing tax system for capital gains, or even Jersey with no capital gains tax laws?

Or simple create a Australian Trust Account or Company and trade through the entity? Corporate Tax Rate is 30% on profits.

My trading broker and account is based in UK.

My question is, what do YOU do and how much tax do YOU pay?

IF what you do has suspect legality feel free to private message me instead of posting on this forum, I am really interested to see how others manage this issue.

You can’t all be doing illegal tax scams! I am really interested…

I’m no CPA but I do know this much. In the United States, we have some states that do not have an income tax, such as Nevada. Perhaps Australia has something akin to this?

The Cayman Islands are also a well known tax-haven since they do not use a capital gains, income, or corporation tax.

Also, again, I am not an expert, but… If you were to invest say in a United States forex firm. What is to stop you from not filling out the tax forms the company sends you? I doubt the company personally cares (unless they wanted an excuse to get rid of you). I don’t think Australia would extridite you b/c of a couple thousand dollars. The only thing I can see is you’d want to make sure you never want to go to the United States, as on your arrival you’d be expected to pay perhaps a lot of money.

I don’t have any experience doing any of these, its just info I’ve picked up from chatting with CPA’s or other savvy business owners. Personally I can’t wait until I have the capital to justify opening a business in Nevada and a ‘branch’ in the Cayman and have the ability to take ‘business trips’ that are write offs on my taxes :smiley: