Australia's #1 for Law

Join 11,000+ Australians. Ask a question, respond to a question and better understand the law today!

NSW Setting Up an International Business for Betting and Gambling?

Discussion in 'Commercial Law Forum' started by Wit, 15 November 2016.

  1. Wit

    Wit Member

    Joined:
    15 November 2016
    Messages:
    1
    Likes Received:
    0
    An Australian resident wanting to set up an "offshore company" primarily to bet with (and maybe trade with), and trying to learn the tax implications / pitfalls. Trying to obtain reliable help without paying $1000-$2000 / an hour to a big firm.

    I am an Australian individual and resident, who is interested in setting up an International Business Company (IBC) or "offshore company" for the specific purpose of betting / gambling with corporate accounts in the name of said IBC. However, I may also be interested in using the same or similar structure but instead for trading purposes at a later date.

    I have read that it is quite common for Forex traders to use IBCs or offshore companies to trade with. Therefore, I think that that would be a close analogy for the required specific advice in my opinion. Any help provided to an Australian Forex trader using an IBC or "offshore company" could form as a template for me, I'm guessing. The main difference is that my main purpose is gambling or betting instead of trading.

    Questions:

    - Is any legal advice obtained likely to help me in court if I land in trouble with the Australian Taxation Office (ATO)?

    - Where are the best / most favourable but still legal and safe place to incorporate the IBC for the purposes of betting and/or trading?

    - Am I financially disadvantaged in terms of increased tax on winnings if I use a IBC instead of a personal account for gambling?

    - Hypothetically, if I had to pay tax on gambling or betting profit, how would I import / report the profit or loss into my individual Australian tax return made from betting with this IBC. How would this be different if the profits were trading profits instead?

    - How would I go about setting up an IBC by myself? Would I hire someone to do it for me?

    If you can provide any relevant help, any idea where can I obtain fair-priced and reliable legal / tax advice, it would be much appreciated. I was told by my accountant that this wasn't his area of expertise and that I probably would need "specialist international tax advice" and that he could only refer me to a big Australian firm, that would charge me $1000-$2000 / hour.

    Any help appreciated.
     
  2. Sophea

    Sophea Well-Known Member

    Joined:
    16 April 2014
    Messages:
    2,400
    Likes Received:
    366
    Your accountant is correct. If you want to embark on the use of offshore accounts and walking the line of tax legality, you need specific advice on what you plan to do. Unfortunately this is not the place to get that sort of advice.
     
    Stop hovering to collapse... Click to collapse... Hover to expand... Click to expand...
Loading...

Share This Page

Loading...
gt;