Brilliant Years 1991

Chapter 159 The Troubles of the Rich
"Clap!"

"Please come in!"

The door was pushed open and Sister Hua, the manager of the Finance Department, walked in. "Hello, Mr. Cao! I need your signature."

As she was talking, she handed over a report. Cao Yukun took it and saw that it was the company's tax return for August. He flipped through it and looked up at her, "Is the calculation accurate?"

She nodded, "It's OK, confirmed."

So Cao Yukun picked up the pen and signed. However, after signing, he suddenly remembered and flipped through the pages. He looked up again and asked, "The 10 million I paid out last time, was it used as a dividend?"

Sister Hua replied, "Of course! But... Mr. Cao, you are not from Hongkong, so you don't have to pay taxes on dividends from Hongkong. But the mainland doesn't check strictly and the information exchange is not enough, which is a hidden danger. You still have to consider it in advance. The company's business is very good and profitable. If you want to save this kind of money, firstly, it is unnecessary and troublesome. Secondly, even if you want to save, you have to think of other ways, otherwise it is better to pay it."

Cao Yukun smiled and nodded, "I know, thank you!"

This was about how Cao Yukun wanted to buy a house in Shanghai, and he withdrew 10 million Hong Kong dollars in profits from the company and gave it to himself as a profit dividend.

The dividends to shareholders of Hongkong are actually very strictly managed, but Yiren Kangyin does not have this problem. No matter what you do, it is Cao Yukun's own company and there are no other shareholders. It is completely legal for him to withdraw money from the account as dividends, and as long as the money is confirmed to be after-tax, he can spend it freely. If you are not a Hongkong citizen or an American, the Hongkong government will no longer collect personal income tax - Americans are subject to tax because the United States has special regulations in this regard, and he collects international taxes!
However, even if Hongkong does not accept it, the mainland will.

No matter where the company is located, in theory, as long as you are a mainland citizen, then even if you are abroad, all labor remuneration, dividends, bonuses, patent fees, etc. you receive need to be taxed domestically.

Personal income tax seems to be 20%!

Of course, this is only in theory, but the reality is that, constrained by the current lack of smooth information exchange, it is simply impossible for domestic tax authorities to conduct tax inspections even if the red sky is just around the corner.

In fact, it is not only impossible in China, but even in America, it is difficult to check the dividends and distributions received by an American in Hong Kong. At present, only the Hong Kong British government, which actually controls Hong Kong, and the United Kingdom above it, can definitely track you down accurately.

Therefore, countries like America need to use their authority to directly levy taxes on all nations and require local governments to collect personal income tax on their behalf. If you do not collect it on their behalf, once they find out, they will find various ways to beat and deal with you, so most countries have to collect taxes on their behalf.

The domestic government obviously does not have such power in this regard. Even Hong Kong was powerless before the return of the country.

But after 1997, it was obviously not possible. No matter how special the administrative district was, taxes had to be collected. And now it was less than five years since the return of Hongkong. If it were to be investigated at that time, to be honest, it would be very troublesome. Although Sister Hua said these few words deliberately to please the boss, she made sense.

Of course, she was worrying too much.

Cao Yukun will definitely not evade this tax.

It is stupid to save such low-level money and bring an untimely bomb to the future.

"By the way, how much money is in the company's account now?"

"We just received a payment yesterday and have already entered it into our account. It will definitely arrive today. After all the money is deposited, there will be more than 3755 million in our account now."

Cao Yukun nodded, his face full of appreciation, "Very good!"

He handed the report back and said, "Get busy!"

This Sister Hua was originally recommended by General Ah Hao, but after using her for a month or so, Cao Yukun felt that she was quite reliable and there were no problems for the time being - as long as there were no problems for the time being, she had to be used. There was no other way. Without enough direct descendants, he could only slowly find people, slowly use them, and gradually cultivate them into direct descendants in the process of using them.

There are no shortcuts.

But after Sister Hua took the things and left, Cao Yukun couldn't help but suddenly become distracted.

There is still nearly 40 million Hong Kong dollars in the account...

so fast!

The advertisement was launched in June, and shipments began to accelerate in late June. Even if it entered the best-selling state in July, it has only been two months. If I remember correctly, the two payments that came this time should have been in early August. The deposit cycle is only two weeks, which is almost extremely short. This money is deposited in the bank, of course there is interest, but the interest is meager.

Previously, Cao Yukun bought a house and spent 2450 million Hong Kong dollars as shareholder profit, which he paid out. When he returned to Fuping County, he acquired himself and bought the Shimen Beverage Factory for million Hong Kong dollars. Together, he spent two large sums, totaling about million Hong Kong dollars!
Of course, as the sole proprietor, Cao Yukun should have paid taxes when selling his individual company, but there seemed to be no such regulations in the country at that time. Huang Jiaying filed the tax return on his behalf, but the county said it was not necessary.

In short, Cao Yukun had an additional 200 million US dollars in his personal account in China.

But even if we spend money like this, the money in the account is still increasing...

So, it seems a bit inappropriate to let so much money, and more and more money in the future, just lie in the account.

However, Cao Yukun was stunned for a while and couldn't figure out how to spend the money next - to be honest, it is not so easy to do a business, and you must be cautious if you rashly get involved in a business you don't understand. That's why ordinary people are more keen on stock and real estate speculation, and when they have some money, they always want to open a restaurant, a bar, and so on.

Just for the moment, the beverage factory is definitely the core of Cao Yukun's career.

The sour plum juice sold very well. Although Jin Zhiqiang made a profit in the middle, the prices on Hongkong's side were too high, so in fact both sides still made money - Yiren Kangyin on Hongkong's side had a net profit of about 4800 to 5000 Hong Kong dollars per ton, and the Shimen Beverage Factory in China also had a net profit of about to RMB per ton.

Next, the company will certainly take advantage of the opportunity to start launching new drinks, such as orange juice, orange soda, orange juice, peach juice, coconut juice, etc. The factory is currently improving the existing flavors while developing new ones. Before the end of the year, they will be launched one by one and enter the market one by one.

In addition, Cao Yukun had already prepared the issue of drinking bottled water. Qiandao Lake was so close, and there were companies there that were so prosperous in the past, so how could he let it go?

It would be good enough if we can occupy these two areas within a year.

Once we have established a firm foothold in the two markets, and have even been able to open up some domestic channels, we can move on to the next step - iced black tea!

In his plan, Cao Yukun even contemplated either acquiring domestic products or developing his own formula. Anyway, he wanted to get involved in the herbal tea business!
If milk tea is added, his line of flavored drinks and drinking water will be basically complete.

Control the flavor, taste and quality, do a good job in publicity and branding, and basically just follow the development of the market, which is enough to make a lot of money.

In thirty years, this will become a bigger market!
However... that's all.

Investing in building a drinking water plant in Qiandao Lake will cost about 10 or 20 million yuan. If the scale is larger from the beginning, 30 million yuan will be enough. After all, the domestic market is limited at present, and the red sky market is also limited. The main thing is to raise the flag first.

According to the plan, the beverage factory will use its own spare capital to build a new factory in the north to prepare for the subsequent nationwide sales. The beverage factory now only makes a domestic profit, which is still more than 8 million per month. If it is good, it can even reach a net profit of tens of millions, without the need for the parent company to pay.

So in fact, by holding on to the current market and income, in the short term, Yiren Kangyin's profit from Hongkong will be pure profit, which will only gradually accumulate in the account and there will be no other place to spend the money.

Of course, he wanted to invest in an instant noodle factory, but Cao Yukun only needed to invest 200 million RMB. He already had not only million RMB from selling the factory, but also million RMB dormant in the account in Shanghai!
Besides, it’s nothing more than acquiring a sock factory—only a matter of one million!
So... it doesn't matter now, but in a few months, especially at the end of the year, there will most likely be a cash profit of around 300 million Hong Kong dollars deposited in Yiren Kangyin's account.

What to do? Spend it!

Cao Yukun didn’t think much about this aspect before, but now, he has to start considering this issue.

People who run businesses conservatively may like to keep their money in their accounts, but Cao Yukun, who knows the direction of the future and even knows exactly what pitfalls there will be, is definitely unwilling to just throw the money there - in an era of hyperinflation and negative interest rates, leaving money in the bank to earn interest is the stupidest thing to do!

However, he had nowhere to cast.

He had met Sun Yansheng unexpectedly and thought that there would be a good investment outlet next. As for VCD, even if he had not met Sun Yansheng, he planned to organize a team to buy it and study it as soon as the first VCD appeared, and then promote his own brand. What's more, he met Sun Yansheng?

However, it is necessary to control him in order to push VCD, which is obviously just a transitional product but is the only thing invented domestically in the entire electrical age, to a brighter future.

Then we can only wait, like a hawk, until he comes out.

So the question remains the same - is there any idle money in the account?
The only possible way out that I can think of is actually just this one - buy a house or a building!
Well, the troubles of rich people.

(End of this chapter)