People do it, but it’s not legal. The corporate funds are for the corporation’s purposes. If you need the money for personal purposes, you’re supposed to take a distribution or pay yourself a salary. If you get caught doing otherwise, you’ll owe the IRS all of the back taxes and some hefty penalties.
What if you pay yourself a salary in Caimans? Here is the problem.
expensing items that aren't actually for your business activities is tax fraud.
Which you cannot prosecute easily thanks to some of the loopholes mentioned in the post itself.