Is the following way of saving income tax legal?

Lets suppose my annual salary is $1M/year from a job. In order to save taxes on various items like car and regular expenses like lunch, I make a company and I myself invest into it, which sells android app online. The company has only one employee i.e me and has made only one app and keeps on improving it. Whatever my personal expenses are there, I just show it on the name of company in order to save tax. Also my company is suffering from loss regularly, as no one is buying my app. Thus whole thing was just created to save my taxes and nothing else.

  • You will be able to type it in the forms, and it will go through, and you will not pay the taxes; but it is still illegal, and when you're audited, you'll be in deep trouble.
    – Aganju
    Sep 18, 2016 at 14:58

1 Answer 1


No, if the app company is declaring expenses of things that aren't really business expenses that would be fraud or similar.

And if the app company gives you things of value for personal use, e.g. access to a car and lunch, then that would be considered a form of income and you would be required to pay income tax on it.

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