Corporations

[dwomack@runner.utsa.edu (David L Womack)]

Mr. May mentioned corporations;  I'd like to
hear comments on a concept....

Let's suppose an offshore corp. is established
somewhere;  perhaps Grenada, perhaps Belize,
or where ever.  You work for this corporation;
the corporation produces a product or service.

Now, here is where the potential seems to be:
the corporation generates bills from the offshore
location.  Customers pay to the corp., mailing 
to the offshore location.  Constructive receipt,
then, is offshore.  My understanding is that 
corporate earnings are subject to the host 
country's tax, NOT U.S. tax.  And, tax waivers
are not difficult to get from these other countries.

If one wishes to take some risks, the corp. then
makes a loan to the individual, at a fair market
rate of interest.  This would be in addition to
whatever miserly wage the corp. paid to it's
employees.  Of course, the person would be obligated
to declare a forgiven loan as income;  they would
be on their honor to do so, since there would be
no paperwork....

Any thoughts?  Or is there a gigantic hole in my
thinking?

Regards....