Quote:
Originally Posted by caper5  No legit business would ever actually do that. Just puts red flags everywhere on your business. Try to write off something you buy from yourself? Audit??? |
Look, I'll spell it out to you.
Joe Shmo owns a cash rich company and wants to get some cash out without paying tax on it. He sets up a 'no questions asked' company in a friendly jurisdiction that buys a domain name that is pertinent to his business.
This company places the name for sale with say, Sedo. His company buys the name through Sedo at a greatly inflated price. He gets a receipt from Sedo for the amount paid. Sedo pay the offshore company. He now has a bundle of cash in an offshore bank, and his company has a domain that gets 10 hits a week!
Get it?