Extraordinary Genius

1964. Chapter 1964 Tax Avoidance (Request for Booking)

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

Recently, both Ralph and Kameido Masao have mentioned one thing with Feng Yu, that is, Amazon, Facebook, Google, MGM and other sub-organizations have an idea to set up a sub-Corporation in the “tax haven” Cayman Islands, and then what will be profit? In the past, it is possible to avoid taxation reasonably.

They were unable to migrate the Corporate Headquarters because of the scale and impact they involved. Many international organizations have done this.

For example, Wind & Rain Holding Company, isn’t it registered here?

Amazon and others have calculated it so that they can pay hundreds of millions of dollars less in taxes each year, and even more in the future. Microsoft, Coca Cola, and so on, all do this.

Since those organizations can, why can’t they? In particular, their overseas subsidiary company can be classified under the name of the Corporation of the Cayman Islands, so that tax avoidance can be avoided abroad.

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

For a simple example, Pierce and Dayao of the Wind & Rain team have a very different tax rate. Because Pierce is a rice country and enjoys more public welfare in the country, the tax amount will be higher.

Dayao is a Chinese person. It is only a job in the country of rice. It is also taxed to China, so the tax here is relatively low.

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

No money to make, silly × only go to your opening of the Corporation.

If Amazon is not a company, it is much simpler to operate, financials don’t need to be public, and many accounts are better.

But they are listed on the Corporation, and these operations are more troublesome.

They hope to use the channel of parent company Wind & Rain Holding Company to help them avoid tax evasion. In this way, Corporate net profit will increase in disguise, and each shareholder will receive more money.

Feng Yu remembers that this method was banned by the country of the past, especially the listing of the Corporation, 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, the previous Facebook book earned more than one billion pounds in the British subsidiary year, but after transferring profits to the Cayman Islands, Facebook’s tax paid is 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?

Amazon and Google have also grown into 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 Feng Yu to his plan, which was the idea that Corporate’s CFO had come up with before working at Coca Cola.

But this approach, Coca Cola uses a different.

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

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 wants 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 license or sell at a low price, and the sub-Corporation or associated company acquires some technology or intellectual property, and then the subsidiary is authorized to use other organizations to make a profit.

In this way, the technology that originally developed the technology is not so profitable, and the subsidiary Corporation or associated company can get the profits of the Corporation that originally belonged to the development of these technologies, but in the Cayman Islands, they can pay less taxes, so not only 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 organizations 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, Amazon, Google and other companies are not all R & D centers, technology research and development is one of their most expensive projects.

These R&D centers are placed in areas where the Company’s income tax rate is high, so that the company’s profits in the region are reduced due to the high expenditure of 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, less tax is paid, and 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 told Bezos that 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, and you will not face high amounts. Fine.

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

Bezos They heard Feng Yu agree and immediately arranged for people to implement it. Ralph also informed Google Corporation, etc. How to operate it, Boss agreed.

Bezos They are 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 Government of the United States.

Feng Yu’s Company in China does not consider these at all. How to pay taxes and pay, the tax is high, it does not matter, Feng Yu is not bad, any other shareholders will not object to Feng Yu’s decision.

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

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