I don't know whether 'Western Balkans' you refer to includes Croatia, but I must warn our potential tax evader that our banks must report every cash transaction over $10000-ish to a government agency, which, in turn, will spill the beans to Uncle Sam if asked (or even if not asked, I am not sure). We have pretty strict laws against money laundering.

However, there might be a way to use off-shore jurisdictions to lower the tax burden legally. To do that, one has to own a company in a country with low taxes, and either do the business from such a company, or make it charge his on-shore company for services (prefferably real ones). Of course, to make it legal, one's own country and the tax-heaven one must have an agreement on avoiding double taxation.

That said, I agree with flame-throvers here. Income and profit taxes are simply part of cost of doing business. It is strange that even in the atmosphere of widespread patriotic breast-beating this simplest way of supporting one's country is something many of breast-beaters try to avoid (I have seen plenty of such cases around me). As to stopping the government from squandering taxpayers' hard earned money, that's an entirely different question.

Now, to climb down from the moral high ground, I believe many of us had commited petty tax evasions (missdeclaring an imported item, charging an extra meal or two to company expense account, things like that). So perhaps we should get easy on casting proverbial stones...
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