Selling an Interest in a failing foreign investment...

#1 07-21-2005, 05:04 PM

I have a question regarding a foreign investment that is failing. I'm involved with a group of folks involved in a foreign investment that currently hasn't paid out for several months after doing fairly well...

The folks feel that the investment "might" turn around and are looking to "sell" their investment positions to an IBC that is willing to buy them on a "deferred payment" basis. The IBC is proposing to buy these positions at a very low price at fractions of a penny on the dollar in order to legally change the ownership of the positions to the IBC. The contract for sale is being proposed as a sort of "deferred payment" contract where, for a token initial payment (perhaps $25 or $50 per position), the IBC will finalize the balance due on sale IF/WHEN the investment becomes fruitful again by using the earnings from the positions to complete the payments. The main benefit to the original owners is that the investment gets placed into an offshore entity THEY don't own while the investment is still well devalued... The IBC will really serve as the "receiver" and holder of these positions while the investment goes through the stages of making a "comeback".... After the "comeback", the original owners would establish their own offshore trusts and then have the IBC (again, not owned by THEM) transfer the ownership of their former respective investment positions back into their new offshore trusts.... At least that is the plan....

My question is.... What is the acceptability of a "deferred payment" contract for the tax purposes of the original position owners or is there even any such animal recognized in business? Would such a "sale" likely be accepted by the taxman with this "deferred payment" contingency?

Any help is appreciated!!

scottinalaska · #2 07-22-2005, 01:00 AM

Sovereigneer,
My reply will not answer your question directly, so I hesitate to respond. But I'l go ahead and start the thread.
Since when did you determine that making "money" was a taxable activity?
I know certain activities are listed in the IRS manual as taxable. Why would certain activities listed be specifically named as taxable when we have the impression that ALL activity that generates money is taxable? I mean, why bother with listing certain ones at all?
I guess we should pay our fair share for the service that the governement is rendering to us as citizens. Now what was that service again? Or what obligation does the government have to its citizens?
My taxman always frowns on anything but full submission, but never returns my calls or letters.
scottinalaska

#3 07-22-2005, 01:08 PM

Hi Scott,

Well, I DIDN'T determine this....but I have a group of over 200 members who want to at least play by the "rules that be" until they can get these positions safely into an offshore trust setup where they don't HAVE to play by these ridiculous rules anymore... ;o)

So, can someone answer my question about the validity of a "deferred payment" contract for sale of an investment position?

Thanks! :o)

scottinalaska · #4 07-22-2005, 02:21 PM

Sov,

Understood. I realize the importance of "going along" until ducks are in order. That is VERY important. Sorry I can't be of more help directly here, but surely one or two of this group of 200 might have some connection to the answer you seek?
s

BOBT12 · #5 07-22-2005, 03:26 PM

Quote:

Originally Posted by Sovereigneer

Hi Scott,

Well, I DIDN'T determine this....but I have a group of over 200 members who want to at least play by the "rules that be" until they can get these positions safely into an offshore trust setup where they don't HAVE to play by these ridiculous rules anymore... ;o)

So, can someone answer my question about the validity of a "deferred payment" contract for sale of an investment position?

Thanks! :o)

Dear Sovereigneer,

Thanks for coming to sui juris. I am just one member here at sui juris and only speak for myself. However, in my humble opinion (IMHO), the members that come to this site are not of the outlook that would be likely to give you the answers that your group may be looking for.

For many, many reasons we are mainly concerned with ways to free ourselves from the IRS, and other government, because we feel that they practice tyranny, thus, cannot be relied on to "play fair".

However, you may try posting on Quatloos!, many of their posters are attorneys, I am not sure that this is a good thing, yet it may yield what you need at this point in time:

http://www.quatloos.com/TaxForums/vi...=asc&s tart=0

By the way this Quatloos! url deals with our (sui juris) website.

#6 07-22-2005, 04:54 PM

Quote:

Originally Posted by BOBT12

Dear Sovereigneer,

Thanks for coming to sui juris. I am just one member here at sui juris and only speak for myself. However, in my humble opinion (IMHO), the members that come to this site are not of the outlook that would be likely to give you the answers that your group may be looking for.

For many, many reasons we are mainly concerned with ways to free ourselves from the IRS, and other government, because we feel that they practice tyranny, thus, cannot be relied on to "play fair".

However, you may try posting on Quatloos!, many of their posters are attorneys, I am not sure that this is a good thing, yet it may yield what you need at this point in time:

http://www.quatloos.com/TaxForums/vi...=asc&s tart=0

By the way this Quatloos! url deals with our (sui juris) website.

Don't let ImFree hear you say Quatloos! Bob12, or you might be up for a stoning.

BOBT12 · #7 07-22-2005, 05:11 PM

Quote:

Originally Posted by Tommygun

Don't let ImFree hear you say Quatloos! Bob12, or you might be up for a stoning.

I think a great deal of IMFree, yet, I speak for myself. I am sure that everyone here understands that.

By the way, I am of the opinion that you speak from your heart. I don't agree with a number of your views, however, I respect them. I am happy that you visit this site, as long as you contribute to the best of your ability.

iamfreeru2 · #8 07-22-2005, 05:21 PM

Quote:

Originally Posted by Tommygun

Don't let ImFree hear you say Quatloos! Bob12, or you might be up for a stoning.

Ha ha ha ha ha !!!!! That was very funny Tommy. I won't stone him, I will tar and feather him, just kidding. I can understand why BOBT12 would say go to Quatloos with what Sovereigneer was asking. Look Tommy, l am not a bad guy. I just want people to prove up their claims, like so many others want on this forum, including Ice, Jerseee, Weis, HB, etc., etc.

BOBT12 · #9 07-23-2005, 12:30 PM

Quote:

Originally Posted by iamfreeru2

Ha ha ha ha ha !!!!! That was very funny Tommy. I won't stone him, I will tar and feather him, just kidding. I can understand why BOBT12 would say go to Quatloos with what Sovereigneer was asking. Look Tommy, l am not a bad guy. I just want people to prove up their claims, like so many others want on this forum, including Ice, Jerseee, Weis, HB, etc., etc.

iamfreeru2,

You are still a great guy, in spite of the tar and feather things.

Much love and respect to all of the Sui Juris crew.

#10 07-23-2005, 01:47 PM

Quote:

Originally Posted by scottinalaska

Sov,

Understood. I realize the importance of "going along" until ducks are in order. That is VERY important. Sorry I can't be of more help directly here, but surely one or two of this group of 200 might have some connection to the answer you seek?
s

Thanks Scott,

Yes, we're trying to utilize all our informational resources right now and I just thought I'd try to see if anyone in here could provide any assistance.

I posted on Quatloos also...

At least THAT thread hasn't been hijacked yet... ;o)