Opening overseas deposit account in Directors name with Company funds

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sandyh2001in

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Hi
Is it possible to open a deposit account in the Directors name but using Company funds ( of which the Director is majority shareholder), in a foreign jurisdiction.

The jurisdiction where the bank lies allows any interest income to be tax free if the account is in the name of a person of origin of that country. It however taxes the income if the account holder is an overseas company, hence the preference to take these funds from Irish company and place them in a deposit account overseas in the name of Director, attracting zero tax from the host country however still declaring interest income in Ireland and paying CT on it
 
sandyh2001in said:
The jurisdiction where the bank lies allows any interest income to be tax free if the account is in the name of a person of origin of that country. It however taxes the income if the account holder is an overseas company, hence the preference to take these funds from Irish company and place them in a deposit account overseas in the name of Director, attracting zero tax from the host country however still declaring interest income in Ireland and paying CT on it
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I don't think it is appropriate for us to be assisting people involved in tax evasion, regardless of the jurisdiction!
 
Jim2007 said:
I don't think it is appropriate for us to be assisting people involved in tax evasion, regardless of the jurisdiction!
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Jim2007 said:
Then why are you seeking to depositing the money in the director's name???
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Im asking if its possible in principle for a director to do the company investments in his own name, this is to ensure company profits are maximised.

If its alright to do so, then why should the company open an account in its own name and be liable to tax in the foreign country.
 
By doing as suggested is this not in effect a loan by the Company to the Directors which could infringe Irish company law?
 
Thats what concerns me. However as the investments are being made on behalf of the Irish company and all corp tax obligations arising are going to be met as well as that the arrangement is not for the personal gain of the Director, could there be a lawful way to do this?
 
IF you were to open an account in the name of a director, you would be opening the director up to a tax liability on the interest earned (As the account is in the directors name).

There would also be potentially issues around the ownership of the funds if the director were to refuse to pay them back. Tight legal contracts would be necessary.



Reading between the lines (and apologies if I'm wrong) you are looking to take advantage of better deposit rates abroad while lowering the tax payable on the interest. I think you are better off going to a financial advisor than doing what you are talking about.
 
sandyh2001in said:
Hi
Is it possible to open a deposit account in the Directors name but using Company funds ( of which the Director is majority shareholder), in a foreign jurisdiction.

The jurisdiction where the bank lies allows any interest income to be tax free if the account is in the name of a person of origin of that country. It however taxes the income if the account holder is an overseas company, hence the preference to take these funds from Irish company and place them in a deposit account overseas in the name of Director, attracting zero tax from the host country however still declaring interest income in Ireland and paying CT on it
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Possible? Yes. Appropriate? No.

The company has no foreign interest income to declare.
The Irish tax issue is the loan to the director.

Not a company law expert but suspect it may not be legal.
 
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