MTL - Extraordinary Genius-Chapter 1969 Tax avoidance (request for a ticket)

Kirilenko returned to China to participate in the big event that made him show his face. Feng Yu, accompanied by Ralph, went to inspect his industry in North America.

Recently, Ralph and Kamei Masaru have mentioned one thing with Feng Yu, that is, Amazon, Facebook, Gu Ge, MGM and other subsidiaries have an idea to set up a family in the “tax haven” Cayman Islands. The company, then transferring the profits and the past, can reasonably avoid taxation.

Because of the scale and impact of the involved, they were unable to move the company headquarters. Many multinational companies do this.

For example, wind and rain holding, is not registered here?

Amazon and others calculated that they could pay hundreds of millions of dollars less in taxes each year, and even more in the future. Microsoft, Coca-Cola and other companies are doing this.

Since those companies can, why can't they? In particular, their overseas subsidiaries can be classified under the name of the subsidiary of the Cayman Islands, so that they can also avoid taxation abroad.

Every country has different taxes on enterprises, especially the tax revenues of state-owned enterprises, private enterprises and foreign companies, and the same is true for personal income.

To give a simple example, Pierce and Dayao of the wind and rain team have completely different tax rates. Because Pierce is a rice country and enjoys more public welfare in the country, the tax amount will be higher.

Da Yao is a Chinese, only working in the country, but also paying taxes to China, so the tax here is relatively low.

The same is true between enterprises. Foreign companies must not be able to pay the same amount of tax as their domestic enterprises. Otherwise, they will pay double taxes and how can they guarantee profits?

No money to make, silly x only go to your company.

If Amazon is not a listed company, then the operation is much simpler, the finances need not be public, and many accounts are better.

But they are listed companies, and these operations are more troublesome.

They hope to use the channel of the parent company to help them avoid tax evasion. In this way, the company's net profit will increase in disguise, and each shareholder will be able to get more money.

Feng Yu remembers that this method was banned by the country of the past, especially for listed companies. This can still be clearly detected.

This is not the case only in the country of the United States, but also in many countries such as the United Kingdom.

For example, Facebook's subsidiaries in the past earned more than one billion pounds a year, but after transferring profits to the Cayman Islands, Facebook paid only a few thousand pounds. Yes, it is thousands of pounds, and an individual who earns £26,000 a year in the UK pays more taxes than this.

For example, Microsoft also played this hand in China. Later, it was not discovered, and then the tax was not paid. It also included late fees and high fines.

The reason is that there is a loophole in this taxation method. If you drilled it and it was not discovered, then it would be fine. If it is discovered, the amount is small, it is estimated that it is okay, for a little money, there is no need to work hard to check what.

But if the amount is large, it is worth it. For example, Microsoft and Coca-Cola are often checked. Who makes them taxpayers?

Amazonas and ancient songs have also grown into large taxpayers, or listed companies. It is too difficult to operate.

Feng Yu is also here to see what they want to do. It's easy to say, it's not easy to do it.

Bezos introduced his plan to Feng Yu, which was the solution that the company's chief financial officer came up with. He used to work at Coca-Cola.

But this method, Coca-Cola is used differently.

Because Amazon is not only a retail enterprise, but also a cultural enterprise, but the most important thing is that they are network technology companies.

Amazon also has many patents, such as current cloud technology, and Amazon is the best in the world.

There are also some big data analytics that are also very valuable.

The main consideration for Amazon is the transfer pricing of intangible assets.

The intangible assets that Amazon is to transfer are not trademarks. If they can’t turn around, they will transfer patent technology, intellectual property rights, trade secrets, and so on.

These are intangible, so it is difficult to price.

They simply grant low-cost licenses or sell-offs to get subsidiaries or affiliates to acquire some technology or intellectual property, and then the subsidiaries are authorized to use profits for other companies.

In this way, companies that originally developed technology would not have such high profits, while subsidiaries or affiliates could get profits from companies that originally developed these technologies, but they could pay less taxes in the Cayman Islands. I have kept high profits, I have paid less taxes, and I am still legal. Although everyone knows, there must be a lot of tricks.

This is why many large companies have many lawyers, not only to fight lawsuits with other partners, but also to provide legal support for these tax avoidances, to prove that I am a legitimate trade, not a tax evasion.

There is also a simple way, that is, companies such as Amazon and Gu Ge are not all R&D centers, and technology R&D is one of the projects they spend the most.

These R&D centers are placed in areas with high corporate income tax rates, so that corporate profits in the region are reduced due to high expenditures on technology research and development, and the amount of income tax that needs to be paid is naturally reduced.

In the case of constant revenue and expenditure, the tax is paid less, and the net profit is naturally higher.

However, countries are now perfecting these legal provisions, and once they are detected, they need to pay taxes. Few to pay taxes to the country, Feng Yu is of course happy, he is not a rice country.

However, he also made clear to Bezos. These are the means of tax avoidance. When you operate, you must be reasonable. In the future, you only need to pay taxes and interest, but you will not face it. High fines.

In many cases, the fine may be more than the tax you need to pay.

Bezos heard that Feng Yu agreed, and immediately arranged for people to implement. Ralph also informed the ancient song company, etc., how to operate it, the boss agreed.

Bezos is trying to increase profits and pay more, and Feng Yu doesn't care much about how much money he has. He simply doesn't want to pay more taxes to the country.

Feng Yu’s companies in China do not consider these at all. How to pay taxes and pay, high taxes do not matter, anyway, Feng Yu is not bad, no other shareholders will oppose Feng Yu's decision.

After returning to New York in a circle, Bloomberg, the owner of the New York Times, came to Feng Yu’s office to talk about a major event in the media industry.

......