Goldman Sachs reports having 987 subsidiaries in offshore tax havens

24 September 2018
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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).
https://lnkd.in/eJhAhqU

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