Chapter 422: Chapter 231: A $1 Billion Penalty_2
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Hearing this, Smollett and his two associates let out a sigh of relief, followed by a worried inquiry, “Then, Director David, may I ask how much this penalty interest… is due for paynt?”
“As far as I’m aware, Amazon has offered you an acquisition price of 8 billion US dollars; your recent negotiations, reaching 8.5 billion, shouldn’t be an issue…”
Upon hearing this, Smollett and the others felt another wave of bitterness in their hearts.
It wasn’t just that Director David had uncovered their company’s impending acquisition by Amazon, he had also accessed such confidential information as the acquisition price, no wonder he seed so confident in dealing with them.
But before they had ti to ponder further, the words that followed from David left them dumbfounded.
“So, we won’t ask for much, just casually pay a penalty of 1 billion and that will do!”
“1 billion!”
The three stood there, stunned, their minds reeling.
1 billion US dollars, and that wasn’t considered a lot?
Just ‘casually’ pay 1 billion US dollars and that’s enough?
You really dare to say that.
Moreover, you have to understand that this acquisition price of over 80 billion wasn’t solely theirs; many investors and shareholders had shares in it too.
If 1 billion US dollars were to be inexplicably deducted now, how would they explain it to so many people?
“What, do you think it’s a lot?”
David narrowed his eyes, emitting an imposing aura without even showing anger.
“Director David, we are willing to pay the penalty for tax evasion, but this amount… it’s just too enormous for our board to accept…”
Under soone else’s roof, so even with their displeasure, Smollett couldn’t afford to be defiant and instead replied diplomatically.
“The overdue taxes you owe, just like Fox Film Corporation, have been accumulating for over a decade or two, and if we talk about the severity of the matter, you’re much worse than Fox Film Corporation. After all, you’ve had multiple acquisitions in the past. Right now, penalizing you 1 billion US dollars is only one-eighth of your acquisition price; don’t be ungrateful!”
“I understand, Director David, but this fine… please consider reducing it a bit, so we have sothing to report back to the board.”
Smollett weakly contested the statent but still pleaded through gritted teeth.
However, David had lost his patience and he spoke coldly, “I am not here to negotiate with you. Either you pay the tax evasion penalty or you will be responsible for the consequences!”
This non-negotiable statent deflated Smollett and the others completely. After exchanging glances, Smollett said feebly, “Alright, Director David, but 1 billion is no small sum; I hope you can give us so ti to pay.”
“One week!”
David, aware of MGM’s difficult financial situation and that it was only awaiting Amazon’s acquisition for a lifeline, consequently didn’t press them too hard.
Hearing that David had given them a one-week deadline, Smollett and his associates felt so relief; if they were to produce the money imdiately, it would definitely be impossible.
“…”
After agreeing to pay the penalty for tax evasion, MGM was able to slip away from the Western Suburb Branch’s tax audit.
No sooner had the three n stepped out the door than the dia stationed there, eager to capture the news firsthand, imdiately sward them.
“Mr. Smollett, may I ask if you ca here to discuss the tax audit with Director David?”
“Mr. Smollett, under the ‘threats’ and appeal of Director David, did MGM concede?”
“Mr. Smollett, is it true your company really felt threatened?”
Being one of Hollywood’s Eight Major Film Companies, every action MGM took was under intense dia scrutiny, especially after the Western Suburbs Branch initiated the tax audit operation.
The fact that three of the company’s executives were summoned here had also sparked much speculation and talk.
“Don’t rush; let explain!”
Smollett gestured with his hands downward to quiet the crowd, saying, “Firstly, the Western Suburb Branch, as an affiliate of the IRS, is not so kind of rogue, and there are no ‘threats’ against us, and secondly, after so friendly discussions, we have indeed reached an agreent with Director David.”
Obligated to declare the matter to the dia as agreed with David, he now had to reluctantly speak up.
“Mr. Smollett, may I ask what agreent did MGM reach with Director David?”
The question from the Los Angeles Tis reporter voiced what the people on the scene and watching the live broadcast wanted to know.
“Years ago, there were so issues with the tax departnt at MGM, leading to so tax matters not being handled promptly. After Director David clarified the situation, we deeply realized our mistakes and have voluntarily agreed to pay our previous taxes and a penalty interest totaling 1 billion US dollars.”
The dia on the scene and the live audience were stunned upon hearing this.
Realized their mistakes?
Voluntarily paying a 1 billion US dollar penalty?
That’s 1 billion.
Not 10 dollars, who would voluntarily agree to this?
“My gosh, are you serious, MGM voluntarily agreeing to a 1 billion US dollar penalty?”
“Isn’t MGM one of Hollywood’s Eight Major Film Companies? And with the other seven major studios still not reacting, why did they ‘surrender’?”
“No, sothing’s off; surely the Western Suburbs Branch, like they did in the trial against Fox Film Corporation before, must’ve obtained so evidence of their tax evasion, which is why they are now accepting the punishnt!”
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