Off Shore Banking & Taxation

onlythedon

Apologies if this should be in banking!

I lent my friend money to carry out a project. At the end of the project he paid tax on the money in Bermuda and in America and the funds were released to his off shore account. He want to transfer the money from his off shore account to me but I have been told I need to pay tax to the bank to have the funds released to me. I know nothing about off shore banking or taxation. The amount is significant and I can't pay the money. He has been told that to reverse the payment could take up to six months. I'm not looking for anything extra only my money back.

I'd appreciate any advice.

Jim2007

Well before you even get to talk about paying taxes, your are going to have to pass the banks MLA procedures or the money won't even hit your account. And that means you and your friend are going to have to provide documentation that shows that everything is above board and correctly accounted for. So you better have a long talk with your friend because if he is playing silly bugger games with of shore bank accounts you may be the winner of one of those silly prizes.

Happyhouse22

Who told you that you need to pay tax to the bank?

Wont say I know much about this type of situation - but generally tax is paid to revenue rather than a bank…

is it clear what type of tax of tax it is? CGT? Income tax?

when you say you can’t afford it, how can this be? Is the tax owed more that the money in question?

Just seems like a scam to me

Peregrinus

You lend money to your friend; it's up to him to repay it to you. His tax liabilities are his business, and if he lodged money in his bank account in Bermuda and there were tax consequences to that, they are his problem, not yours.

Tell your friend that you expect him to repay your money, in full, with any agreed interest. The mechanics by which he arranges the payment do not interest you.

Oh, and now might be a good time to visit a solicitor. There's a sporting chance you're going to have to sue your friend if you want to get any money out of him.

o1s1n

How good of a friend is he? Sounds a little bit like he might be taking you for a ride.

Marcusm

https://www.boards.ie/discussion/2058340861/off-shore-banking-taxation

What country is your bank account in? I doubt that it is Ireland but I would not be surprised if it was Brazil or some similar country with capital import restrictions.