Is it tax evasion?
A person lives in Ireland for only 6 months or less a year so he doesn't have to pay taxes. Is this legal? His estate and land valued at over 100 million are not in his name; they are in the name of his international company. He reports no income even though he has millions in a Bermuda bank. He is not a US citizen. I want to know what if any of this is illegal?
Answers:
A US citizen owes taxes on all income from all sources, unless proves residency abroad for an uninterrupted period of one year or longer (or qualifies for the "physical presence test" per IRS regulations).
I don't know what Ireland considers residency for taxation, I'm sure they insist on some kind of tax on income earning there. If he is not a U.S. citizen then he owes no U.S. taxes unless, again, the money is earned in the U.S. The corporation is stuck with the tax liability and I am sure it is very good at dodging the brunt of it. It doesn't sound like evasion on the face of it.
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Answers:
A US citizen owes taxes on all income from all sources, unless proves residency abroad for an uninterrupted period of one year or longer (or qualifies for the "physical presence test" per IRS regulations).
I don't know what Ireland considers residency for taxation, I'm sure they insist on some kind of tax on income earning there. If he is not a U.S. citizen then he owes no U.S. taxes unless, again, the money is earned in the U.S. The corporation is stuck with the tax liability and I am sure it is very good at dodging the brunt of it. It doesn't sound like evasion on the face of it.
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