anyone here an expert on tax evasion?

anyone here an expert on tax evasion?

Yep, but not admitting to it!

I guess the IR has no way to find out if I don't cash the cheque in the UK?

I'm guessing that sometime in the near future the IR will go to Google and say something like "We want a list of every payment you send to a UK postal address with earnings over £1,000.00 per annum", or something similar...

Remember this, the IR has deeper pockets than anyone or any company, they will spend a million chasing a thousand Pound debt just to prove a point. They don't have to justify their expenditure since we, the taxpayer, can't do a damned thing about it!

You may find this Inland Revenue page very useful if you have any questions:

[hmrc.gov.uk...]

The cheque normally has the full postal address printed under the payee name. Many banks use additional information like a/c no.& address to cross check that the money is meant for the person whose name is entered as payee, to prevent fraud related to identity theft.

If you try to cash your cheque in Poland, with your relatives name as payee and address in England, you are likely to see that the cheque will be returned.

It also seems that the G cheque is normally issued from a third country and they have reciprocal arrangements in the payee country for encashment. In case their records donot match , you may be denied payment. Once the cheque is marked as fraudulent, it will be useless and your a/c could be threatened.

Just my opinion.

IMHO, unless G specifically advises your local tax agency that they are making a payment to you , they will not know. However donot underestimate your tax guys. They are specialists in ferreting out this kind of info.

You could well lose on all fronts

The UK tax authorities are starting to work with EBAY in the UK for Tax purposes so it's no big jump for them to work with Google in the near future

At that point Google will just tell Tax authorities #*$! paid to yyyy at ZZZ address , the Tax authorities won't care where the cheque was cashed they will take G data and tax you on that , if that is the case your relatives in Poland will be taxed by polish authorities and you will be taxed on same cheque by UK authorities will be a no win .

I am not nor never have been a tax expert so take with grain of salt

steve

While you're living in Britain, do you use our public roads? Do you know what pays for the building and maintenance of those roads? It's taxation revenue. When you are unwell do you make use of our NHS? That's the National Health Service - free to all at the point of delivery, but funded by - yes, that's right - it's funded by taxation. Made a cup of tea today? That nice, clean fresh water didn't find its way into the tap by accident - it's taxes that allows it be so clean and free-flowing.

So you want to live here and, presumably, work here, and make use of our national infrastructure but you'd rather not make any contribution towards it and now you want me to advise you on how to dodge making any tax contributions? No thanks.

Plus you will be paying crazy commission.

The banks win, google wins. You lose.

If your income is sufficent to hire an accountant, he'll find a way to write off the tax.

If not, then it isn't worth the risk. The UK, like most countries, chasers small tax evaders much more enthusiasticly than big one. [go figure]

Why volunteer to be picked on?

[edited by: Quadrille at 1:52 pm (utc) on Sep. 18, 2006]

I wish they had bank secrecy like in Switzerland.

Well said Etonian

Ditto Etonian.

Taxes are a necessary evil if civilization is to be maintained. If one enjoys living and earning in a certain country I feel that taxes must be paid. Of course, he could close down shop and go live in the woods and eat berries, no taxes on that I am sure.

Even at my age I pay a ton of taxes every year, my biggest write off? I treat myself to a new computer in Nov or Dec. :)

Best thing to do is save a little from each check and pay it quarterly (in the US) takes the sting out of April 15th.
I don't know if you can do that where you live but you can open a savings account.

By all means, pay your share. It might just go towards saving a life with better health care or, etc.

Ann

The dutch tax authorities are using a special written bot to see if there is any form of advertisements on .nl sites. If so, well I guess you can figure that one out.

... wondering how long it takes for other tax authorities to write their own bots.

Thanks for you advice guys. I haven't received any Adsense cheque yet so I wanted to confirm wheter there is actually address printed on the cheque. In that case I think I will cash the cheque in the UK, pay the taxes for it and I will ask my relative to open a new adsense account and in the future the entire operation will be in Poland.

Don't get me wrong. I am already employed in the UK and I pay quite high taxes to IR. But I don't want to pay self-employed tax rate in the UK for my adsense earning as its way to much IMHO (and LTD company is not an option for me) I will not evade the tax as the tax will be paid in Poland.

Taxes are a necessary evil if civilization is to be maintained.

Taxes which allow everyone to live in a better environment with better services and a better quality of life are not evil.

My only reservation to paying taxes in the UK is that the country is a n##-i########## power and you never know how much of your tax is being spent on very expensive c###### b#### which don't discriminate as to who they m### or k###. And I don't like the idea of money that I work for being spent on w###### which m##### i####### w#### and c#######.

That's evil.

AFAIK (INAL):

- Technically you will have earned the money by having the ads/account/website/... your tax status has nothing to do with the act of cashing the cheque itself. They might be viewed as royalties (generally not the worst way to look at it), talk with an accountant.

- A cheque can be signed over on the back to somebody else and then they can cash it. Basically you give them money. Your name/address then becomes unimportant. [Actually banks want you to sign the cheque yourself when you hand it in to be added to your acount]

- Banks will charge a lot to cash a foreign cheque, and it might take a long time to process if they do not trust you to do direct credit.

- Cheapest way to cash a US cheque: If you do visit the US, and have a friend there, go to his/her bank with the cheque, sign it over to him/her, (s)he then hands it to the cashier, and receives the cash, no comission involved. Getting the money from hiom/her is a matter of trust. You can probably find a bank to cash it to you without having an account as well, but it'll be a lot harder to find a branch of the issuing bank they use at the moment. [A while back their banks jumped about]

- If you have the option, use the electronic transfer. It's cheap, efficient and involves no risk for postal servics doing the wrong thing.

Hi Forcer

I suggest that you talk to an accountant cos any income generated in the UK is probably subject to UK tax,

Even multi-nationals operating in the UK are subject to UK Taxation

any income generated in the UK is probably subject to UK tax,

Right, I am going to post this again for those of you who do not read, or decide to ignore, earlier posts:

[hmrc.gov.uk...]

This is how "most" western taxation authorities treat potential income tax liabilities. It's very easy to understand and it leaves no one in any doubt as to their exact position.

There are very legal methods of mitigating one's tax situation therefore if one is a self-employed high earner, get expert, but usually expensive, advice.

Try finding out who the accountants are for your MP, they're usually pretty switched on:-)

The Inland Revenue can make ones life a total and utter misery, do not doubt their powers of persistence or relentlessness plus that they have some very intelligent people working for them.