Goldman Sachs reports having 987 subsidiaries in offshore tax havens
Goldman Sachs reports having 987 subsidiaries in offshore tax havens, 537 of which are in the Cayman Islands despite not operating a single legitimate office in that country, according to its own website. The group officially holds $28.6 billion offshore (i.e., stocks and bonds, currencies).
1 - The IRS/US Treasury (Tax Code) does not tax LT or ST capital gains on publicly traded stock, if the offshore company (IRS PFIC/QEF Form 8621) does not engage in a trade or business in the United States. The number or size of the trades doesn't matter. You could make 10,000 trades an hour.
2 - The US Tax Code does not require these companies to file annual US income tax returns, so long as there is no ECI (effectively connected income).
3 - You can use your US stock broker to facilitate the trades.
NOTE: "If your only U.S. business activity is trading in stocks, securities, or commodities (including hedging transactions) through a U.S. resident broker or other agent, you are NOT engaged in a trade or business in the United States." - IRS https://lnkd.in/e8C-x6r
Our resume https://lnkd.in/eG34iRu
GS uses 2 companies in their scheme; https://lnkd.in/eeEMJEp
ML Cayman same scheme: https://lnkd.in/ewwRd_f