Hi - so I'm sure you've all heard of these companies which claim to trade participants' smallish/large sums of money on the forex and pay out each week on the gains. Always gains. Never losses. Smell a rat.
Anyway, you can also "introduce" someone below you and you get a portion of their investment. So an individual can obtain income from two streams/transactions: their own weekly forex growth % (based on the "pack" they are on, and a cut of sums invested by their underlings. And as an underling themself brings someone below them, you get a bump up from what they brought in and so on.
One then "lives off" their weekly growth but rolls capital in again to get into an higher rate pack.
The "leaders" use social media to actively draw people in so it isn't fully passive income - there is effort in increasing your family tree and earning kickbacks from their investments. There is income to live on. There is capital to reinvest. Gains are made in USD and transferred to a "fob" via Bitcoin and then to one's own personal account.
Many worms in this can but is it all outside tax? The forex trading gains and the income earned from "bringing" people in?
I'm very interested in the community's thoughts on the tax.
As far as I know, investors are advised that the taxation is subject to applicable jurisdictional law. The tentacles of this thing reach all corners of the globe.