NASA recently announced that your name can be put on the planet Mars. This is incredibly great news for the people with good fortunes who are thrilled by the opportunity to gain their foothold in the universe and enhance their fame. However, in another space mission, scientists are attempting to find out if any life exists in other planets.
Think about it. If they indeed were able to find the life on Mars and if the inhabitants there happen to be much more advanced than the humans on earth, they are likely to have a tax law that can tax such inbound activities. Beware and think before you make that tempting decision.
Putting your name on a planet may have its other side. If “cross planet” law applies and absence a tax treaty (we are not aware about any as of today), just by putting your name can create economic “nexus” and a Permanent Establishment in Mars. If BEPS – Base Erosion and Profit Sharing – laws are much more advanced than our planet earth, you may receive a tax bill from Martian tax authority as soon as your name appears there.
Not enough information is available at this stage if IRS has signed any information exchange pact under FATCA with Mars or whether the tax agencies around the globe are secretly using the “trick” to disclose your name to Martian government!
It will certainly be to your advantage to consult a “cross planet” tax advisor who can keep you out of any trouble. Watch out and do not fall in the trap – think before you leap!!
Original Post By: Pallav Acharya