Chapter 424: Chapter 232: Another One Submits
[Na: Tom Krus.]
[Occupation: Actor, Investor…]
[Monthly Inco: 11 million USD.]
[Inco Detail: Earned through acting fees, company stock dividends, bonuses…]
[…]
…
[Na: Avrilor Kir.]
[Occupation: CEO of United Arica Movie Company.]
[Monthly Inco: 900,000 USD.]
[Inco Detail: Earned through salaries, bonuses, dividends…]
[…]
…
[Na: Nockmand.]
[Occupation: Vice President of Allied Arica Company.]
[Monthly Inco: 500,000 USD.]
[Inco Detail: Earned through bonuses, salaries, dividends…]
[…]
…
After examining these people’s information, a smile slowly ford on David’s lips as he looked at Brother Tom and said, “Mr. Krus, I have great respect for your professional spirit, but I do not agree with you!”
The na of a person, the shadow of a tree. With David’s infamous reputation, Brother Tom also felt sowhat unsettled by the questioning stare but still tried to respond calmly, “Director David, regarding your disagreent with my words… which aspect are you referring to?”
“Your United Arica Movie Company was founded in 1919 by four renowned directors and actors: Master Charlie Chaplin, Van Punk, Bi Kefu, and Griffith, gradually developing into one of the eight companies that controlled Arica’s movie production and distribution.”
“In the 1950s, Arica’s film industry entered a period of recession and decline, with Charlie Chaplin and Bi Kefu selling their shares to financial capitalists.”
“Subsequently, Allied Arica changed hands several tis until it was finally bought by the owner of Migaoi Company, K. Ke Kelian, in 1981, and it was rged into MGM, renad Migaoi—United Arican Entertainnt Company.”
“However, entering the new millennium, MGM found itself in a crisis, struggling to survive, but in 2006, your opportunity ca…”
Upon hearing the year 2006, Brother Tom’s face suddenly tensed up, and the other senior executives from Allied Arica were no better, all feeling as though they were on pins and needles.
“According to Arica’s tax system, there is double taxation on the sa inco for companies, aning that after-tax profits of a company are taxed again when distributed to shareholders, and dividends are usually taxed as ordinary inco. The dividends distributed to company shareholders do not always have to be fully taxed.”
“Corporate legal entities receiving dividends from other dostic companies can deduct 70%, 80% if they hold more than 20% of the distributing company’s shares, and 100% if the shareholders and the distributing company belong to the sa affiliated group.”
“So you and your partners were clever to negotiate with Migaoi to use shareholder dividends as a way to avoid taxes.”
“That’s why in acquiring the movie company, you and your team did not pay a penny in capital gains tax.”
“This is why, Mr. Krus, you have never been willing to reveal how much you invested at the ti to the dia, am I right?”
In Arica, the reason the poor have to pay taxes is that they do not have professionals, teams of lawyers, or a legal departnt to strategize for them.
But it’s different for the rich, with the help of all sorts of teams, they have countless ways to avoid taxes.
Just like Brother Tom, who in 2006, along with his partners, acquired Allied Arica using shareholder dividends as a tax avoidance thod.
However, this thod and those yin-yang contracts used by Hollywood big shots for tax evasion are pretty much the sa. If the IRS delves into the data and pulls it out, it is very easy to accuse them of tax evasion.
As David laid out the situation at the ti, along with the confidential information about the acquisition and the ownership structure, Brother Tom and the two senior Allied Arica executives also turned dark and somber.
But Brother Tom did not choose to back down imdiately. He countered, “Director David, even if what you say is true, at the end of the day, if the acquisition has been approved, it is legal by the law at the ti!”
“It was legal at the ti, indeed. However, since you chose to exploit the loopholes in our tax law to avoid the taxes due on the acquisition, do you think it’s difficult for now to find a few charges against you according to the tax law?”
David’s words were not a threat.
Although it appeared that Brother Tom’s acquisition at the ti had passed regulatory scrutiny.
Firstly, the Migaoi Company back then was already involved in many regulatory violations and, most importantly, Migaoi Company has now admitted wrongdoing, and since Allied Arica was part of Migaoi at the ti.
By seizing just one aspect, he could fra the acquisition as a violation, plunging the Allied Arica that Brother Tom currently controlled into a scandalous turmoil.
At this point, Brother Tom’s brows knitted into a deep frown.
It’s not just that the deal at the ti indeed had issues; even if there were none, with Director David’s capabilities, he could certainly fabricate problems.
And if it ca to that, matters would beco even more difficult to resolve.
“Can we talk in private?”
David picked up the desk phone, and soon Nisen walked in, saying to the three n, “Gentlen, please follow !”
Nisen took the three to the adjourned resting room and left, while Brother Tom spoke with a heavy expression, “Let’s hear your thoughts.”
“To think that he managed to dig up such detailed information about the 2006 acquisition. If it weren’t for the issues at Migaoi’s end, we could have had a good back and forth with him, but since Migaoi has already conceded, as soon as they confirm anything, we wouldn’t be able to wash our hands clean of this.”
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