Chapter 1969

Kirilenko returned home to participate in the event that made him show his face, while Feng Yu, accompanied by Ralph, visited a circle of his industries in North America.

Recently, Ralph and Yasuda Zhengxiong have mentioned to Feng Yu that Amazon, Facebook, Guge, MGM and other subsidiaries have an idea to set up a subsidiary in the Cayman Islands, the "tax haven", and then transfer the profits to the past, you can reasonably avoid taxes.

Because of their large scale and influence, they are unable to move the headquarters of the company. Many large multinational companies do this.

For example, wind and rain holdings is registered here.

Amazon and others calculated that they could pay hundreds of millions of dollars less tax every year, or even more in the future. Microsoft, Coca Cola and other companies do this.

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

Each country's tax revenue for enterprises is different, especially for state-owned enterprises, private enterprises and foreign enterprises, and personal income is the same.

For example, pierce and Yao of the Stormwind team have different tax rates. Because Pierce is a American and enjoys more public welfare in the United States, the tax amount will be higher.

Dayao is from China. He only works in the United States. He has to pay taxes to China, so the tax here is relatively low.

The same is true among enterprises. Foreign enterprises must not pay the same amount of tax as domestic enterprises. Otherwise, how can they guarantee profits if they pay double taxes?

I don't have any money to earn. I'm going to open a company with you.

If Amazon is not a listed company, it is much easier to operate, its finance does not need to be disclosed, and many accounts are easier to operate.

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

They hope to be able to help them avoid taxes reasonably through the parent company's wind and rain holding channel. In this way, the company's net profit will be increased in disguise, and each shareholder will be able to share more money.

Feng Yu remembers that this method was banned by the United States in the past, especially the listed companies, which can be clearly found out.

Not only in the United States, but also in Britain and many other countries.

For example, the former Facebook subsidiary in the UK has an annual income of more than 100 million pounds, but after transferring profits to the Cayman Islands, the tax paid by Facebook is only a few thousand pounds. Yes, thousands of pounds, and a British individual with an annual income of 26, 000 pounds pays more taxes than that.

Microsoft, for example, played this game in China. It wasn't found out later. Then it paid the taxes, not to mention, but also included late fees and high fines.

The reason is that there is a loophole in this tax method. If you get it and it's not found, it's OK. If it's discovered, the amount is small, it's probably OK. For a little money, there's no need to work hard to check the accounts.

But if the amount is large, it's worth it. For example, Microsoft and Coca Cola are often audited. Who makes them big tax payers?

Amazon and Guge also grew up to be big tax payers. They are still listed companies. It's too difficult to operate.

Feng Yu is here to see how they want to operate. It's easy to say, but not easy to do.

Bezos introduced Feng Yu to his plan, which was the idea of the company's chief financial officer, who had worked in Coca Cola before.

But this way, Coca Cola uses different.

Because Amazon is not only a retail enterprise, but also a cultural enterprise. But most importantly, they are network technology enterprises.

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

There are also some big data analysis, which is also very valuable.

Amazon's main consideration is the transfer pricing of intangible assets.

The intangible assets that Amazon wants to transfer are not trademarks. They want to transfer patented technology, intellectual property rights, trade secrets and so on.

These are invisible, so it's hard to price them.

They simply authorize or sell off at a low price, so that subsidiaries or affiliated enterprises can obtain some technology or intellectual property rights, and then subsidiaries can use them to other companies for profit.

In this way, the companies that originally developed the technology will not have such high profits, and the subsidiaries or affiliated enterprises can obtain the profits of the companies that originally developed these technologies, but they can pay a lot of taxes less in the Cayman Islands, so that they not only retain the high profits, but also pay less taxes, and are still legal, although we all know that there must be The cat is greasy.

This is also why many large companies have many lawyers, not only to fight lawsuits with other partners for possible problems, but also to provide legal support for these tax evasions, proving that these are legitimate trade, not tax evasion.

There is also a simple way, that is, Amazon, Guge and other enterprises do not have R & D centers, and technology R & D is one of their biggest spending projects.Put these R & D centers in areas with high corporate income tax rates, so that the profits of enterprises in this area will be reduced due to the high expenditure of technology R & D, and then the income tax that needs to be paid will naturally be reduced.

In the case of constant revenue and expenditure, the net profit will naturally be higher if taxes are paid less.

However, countries are now improving these legal provisions. Once they are found out, they also need to pay taxes. Of course, Feng Yu would like to pay less taxes to the United States. He is not from the United States.

But he also made it clear to Bezos that these are all tax avoidance measures. When you operate them, you must be reasonable, so that if you find out in the future, you only need to pay taxes and interest, rather than face high fines.

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

Bezos, when they heard Feng Yu's agreement, they immediately arranged for someone to implement it. Ralph also informed Guge company and so on, how to operate it, the boss agreed.

Bezos wanted to increase profits and make more money. Feng Yu didn't care how much money he made. He just didn't want to pay more taxes to the American government.

Feng Yu's enterprises in China do not consider these at all. It doesn't matter how to pay taxes. It doesn't matter if the taxes are high. Anyway, Feng Yu doesn't need money. No one else will object to Feng Yu's decision.

After a round trip back to New York, Bloomberg, the boss of the New York Times, came to Feng Yu's office to talk about something important about the media industry.

……