kyteflyer

I thought it might be an idea to have a generalised discussion thread about RPPS as what seems to be happening in the GPP and PWW threads is that there is a significant overlap in terms of discussion content, and much of it really belongs in a general non-specific thread.

I know a lot of people have questions about RPPs, perhaps those can be addressed here, rather than in any specific program thread.

Are RPPs actually doable? I believe so. Peter, I seem to recall you mentioned that it had been done offline? Or someone did. It would be good to get more info about any offline ventures if its available.

Also, one of our number (no names, no packdrill, its up to him if he wishes to identify himself) is in ICC so I am hoping he will post here when that is all finalised, it will make what we are into now look a lot more attractive.

anyway, here's the general thread. Try to keep specific program discussion contained within the appropriate threads.

Traveler

I would like to discuss how RPP's are to be reported in one's country as far as taxes go. I actually don't want to report any earnings. While I think many are in agreement I have always seen it hinted at, but no one really comes out and says it. So have some ideas? PM if you don't want to post it here.

gaby

I guess it all depends on the payout method.

If you get a 'banking solution' with a debit card, perhaps you can withdraw the money slowly without raising any flags. But then again if the two countries (yours and the one the banking solution is located) have some treaties regarding taxation, it might be reported automatically.

If you get a lump sum in e-gold ... treat it as any other e-gold deposit you receive.

If it has to be wired to a bank account, then if you have an offshore bank account you should be fairly safe. If the receiving bank is local then you might need to find a way to report it.

The above are only my opinions and i am not suggesting anyone follow them. (just in case)

It also depends on where you live. I heard in some countries pension plans are tax free, so there you should report it without fear ...

Traveler

thx for the info. with an offshore account how do you get your funds? I am not going to get off track on this thread I do remember it is for RPP's...

Phoeneex

This is interesting too to follow. I wouldn't mind by then or at any time after two years ago where I am, that tax be imposed...if ever!

Yearly, I am faced twice in two countries myself and so far, I have gain or come out better than those getting tax once as always.

I know I will let it be handled by my Accountant on both sides but I believe, when it ever gets to be deposited in one of the two, my Accountant in the country where the deposit arrives will have no difficulty in processing it on my behalf and I expect to get off, slippery or not, he is a superb tax refund expert!


Nevertherless, all extra information for sharing are welcome.


Phoe

kyteflyer

I am going to be talking to a tax agent about this stuff, to find out what kind of tax hit I would be taking under certain circumstances. I think in Australia its likely to attract something like 45% if one was to just stick it in a bank account, so I am going to be seeking his advice regarding what to do. I think if it were to roll straight into a superannuation fund or if I were to pay off my house in one hit, that would not attract as much, if any... I have never been in a position to worry about it but with sums like this... one is going to have to do the research ahead of time.

I thought it might be prudent for each of us to check out the tax office web sites in our respective countries to see if there is any useful info there. I certainly am about to... I woke up this morning worrying about it!!

[edit] Australian Tax Law (Interpreted, not in legalese) is available in a huge online database. I am on a mission to find answers for the Aussies who are into this.

[edit #2] ATO rates for 2006-2007 determine that without some kind of loophole (eg as mentioned above, and I can't find any) and if all three plans pay out in the same year, I'll be paying (in AUD) $162,244 in tax, from an income of $404,211. Bear in mind that these figures are in Australian dollars. The numbers don't look nearly as bad in EUR, GBP or USD.

I don't know if these payouts would qualify under the same terms as an eligible termination payment, and there are some vague references to endowment policies in the website but theres nothing specific which is reassuring. I'll have to speak to my tax guy, he's very discreet.

kyteflyer

If the debit card is anonymous, and you didnt withdraw massive sums at the same ATM day after day, you probably wouldnt get noticed.

The banking solution as offered by GPP is supposed to be at a real bank so in theory you could deposit the funds from PWW there, as they will be depositing to a bank account you nominate. Unlikely that PWW will finish before GPP. The other one is bound to finish earlier, and will pay to e-gold. That will be the one to watch in terms of how you deal with being suddenly flush with cash.

Anonymous debit card is the way to go... I am imagining that the DC we get from GPP will be named, though (I dont think we have ever been told one way or the other, I am just making assumptions).

AussieBob

How many RPP's are there at the moment?
I know of 4 -
GPP - i am in this one , so far seems to be running fine...
HCI25 - i am in this one too...
PWW - not in yet but thinking about it..
ICC - in this one But it is closed now and i cant say anything about it other than i am very glad i joined ....

Are there any i have not listed ?

and as far as taxes on the payments are concerned , i think an offshore bank in a tax haven controlled by IBC , PIF combination would save heaps in tax ( if not all tax )..
i am not an expert though and am doing lots of research...

monds6

Well I am not sure how to report it, but I am for one am just hopeful it will be a problem I have in the future. No one has been paid yet, so hopefully that will change