I dont think it is *impossible*. But it is not as easy as
you suggest
It's very easy and surprisingly cheap: USD 700 and two faxes
later, you're set up with a BVI company in all legality. (I have
a BVI company, so I know whereof I speak.)
How do you think that Clint & CO are to repatriate
the profits of
the BVI company as non taxable income?
You disburse the BVI profits two ways: as expenses in promoting
the venture outside the EU and as dividends to the
shareholders. Obviously, you retain a chunk for ongoing
expenses, too. You also control when and how the income is
returned to the UK.
I never said it would be nontaxable. The aim is to remove the
VAT threshold and thus eliminate the harsh cost burden which
ensues on a small company and on the overseas players.
And there's a side benefit: you can issue up to USD 50,000 of
stock at any nominal price you like. Now, somewhere, somebody
was wondering how to acquire the rights to the game... Leave
the income in the BVI company, issue shares over time, and wait
for the right moment.
What would they do
with the tax
losses created in the UK?
What tax loss in the UK? Anyway, a loss is a perfectly
valid business practice. As long as it doesn't go on for too long...
The costs of setting up a scheme, even
if it
where viable, are not going to be small.....
See above.
The costs of running a BVI company are far less than accounting
for VAT in all its glory.
Gavin