Hong Kong Island: From a small stall to a global supplier

Chapter 187 The Face of the Capitalist (asking for monthly ticket)

The society’s gray income mainly comes from three aspects: pornography, gambling and drugs.

yellow:
Malan was converted into a hotel, the ladies paid the room fees, and the remaining profit had nothing to do with Wang Yaotang.

There is no coercion. Young ladies work completely voluntarily. Some of them are raising funds in the short term, some have family difficulties, some have overspending, and some...

I just want to use my own excellent conditions to create economic value!
If a bathhouse or acupressure room is closed, it is against company regulations and wages will be deducted. Some people may owe the company 20,000 or 30,000 yuan every month...

But no matter what, it has nothing to do with Wang Yaotang. He earns reasonable income and pays taxes according to the law.

赌：
The Tsim Sha Tsui East gang expanded several times, and several gambling dens did become gang properties, but they are currently in the hands of bigwigs from other gangs such as Blind China, Big Head Sheng, Bronze Dog and Da Sheng Tian. A portion of the money does have to be handed over to Wang Yaotang every month.

毒：
no.

usury:
no.

smuggling:

Red wine, tobacco, cooking oil.

Other clothing industries, hotels, entertainment, human resources companies, and restaurants all have legal income.

"The above is the income situation. The expenditure issue is also more troublesome." Li Menghui said in a deep voice: "The main expenses are the club fees, horse-riding pensions, and medical expenses. These are currently illegal and are actually tax evasion."

"Tax avoidance...how much tax did I pay last year?" Wang Yaotang suddenly asked.

“About 700 million.”

Wang Yaotang covered his chest and took a deep breath, feeling heartbroken!

Why should I give the money I worked so hard to earn to foreigners?

"So, what suggestions do you have?" Wang Yaotang asked in a deep voice.

"I suggest you form a professional team to reorganize all your businesses. Take this opportunity to sort out your businesses, which can both reduce risks and reasonably avoid taxes. In addition, the equity of the various companies under your name is very confusing."

"Ah?" Wang Yaotang was stunned. "Chaos? No, didn't I divide it among my brothers?"

Li Menghui's mouth twitched. "That was negotiated by you guys. Although the contract was signed, the actual equity ratios between the companies were not the same. In order to avoid taxes, many industries were acquired by withdrawing funds from Hongdou Company. In addition, part of the funds came from winnings from life-and-death gambling, and part of the funds came from laundered black income."

Wang Yaotang had experience in both law and accounting, so he immediately understood what was going on.

The bespectacled boy roughly understood.

But Aji, Ajie and Awei were all confused. "Isn't Hong Kong tax-free?"

Li Menghui looked at the three people and didn't know how to express it for a moment. "It's not completely tax-free, otherwise why would we smuggle? At least it's not tax-free for ordinary people."

The three of them looked at each other and thought, damn, if you have knowledge you can do whatever you want, right?

"Is it necessary to form a so-called team? How do you think we should organize it?" Wang Yaotang asked.

"When registering an offshore company, the offshore islands generally have strict commercial confidentiality laws and regulations, and a large amount of commercial information is not filed or verified. As a result, it is difficult for the tax authorities to obtain the company's real transactions and profits, making it difficult to track and tax the profits transferred to the offshore islands through transfer pricing and other methods." Li Menghui glanced at Wang Yaotang, "It is also convenient to launder and transfer some gray industry income."

“So, the team needs at least one barrister who is proficient in Hong Kong commercial law, one barrister who is proficient in offshore island law, one expert in banking, and one elite who is good at business planning.”

"And I am just a middle manager of one of the thousands of ordinary financial companies in Hong Kong. You know I don't have this ability." Li Menghui smiled bitterly and said, "If you mess it up, it will have a very negative impact on your future."

"Okay." Wang Yaotang sighed.

"You guys always talk about tax avoidance. How do you avoid taxes?" After listening to the two of them finishing their business, Ajie asked curiously.

Knowing more about it will allow you to show off when you drink and chat with others.

Or... expose others!
Even better!

“There are mainly three ways: utilizing offshore business structures and offshore exemptions, transfer pricing strategies, and double taxation agreements,” Wang Yaotang said with a smile. He has learned these basic things after studying law (LV1) and accounting (LV2).

"For example, if I sell sexy lingerie to Taiwanese people, the contract is signed in Thailand, the goods are shipped directly from the mainland to Taiwan, and the payment settlement does not go through the Hong Kong account, then I can apply for offshore exemption."

"I understand every word, but I don't understand when they are put together." Ajie spread his hands and asked in confusion, "We are together every day, but I don't see you studying. Tell me, Brother Yao, do you secretly study hard in the bathroom every night after you go home?"

"Get lost!" Wang Yaotang cursed with a smile.

"Shut up, you poor student, and stop making trouble!" Four Eyes slapped Ajie. "What about the transfer pricing strategy?"

"Pick!" Ajie grinned and cursed under his breath.

"Or is it that Hongdou Company produces in the mainland and transports to Hongdou for sale, and 16.5% of the profit has to be used to pay taxes? Then I can now register an offshore company to purchase from the mainland production factory at a fair price, and then sell it to Hongdou at a high price, greatly raising the purchase price and lowering Hongdou's profit. With less profit, it can naturally pay less tax, thus leaving more profits in the offshore company." "What about the double taxation agreement?"

"This is a little complicated." Wang Yaotang thought for a moment and said, "If I transfer a large amount of personal funds from abroad to Hong Kong Island, I must explain the source of the funds to the bank to see if it is legal or involves money laundering. Do you understand this?"

"Understood." The four of them nodded in unison.

"Take our clothing company mentioned above as an example. I used the 'pricing strategy' to intercept a large amount of profits to offshore companies to avoid taxes. However, this money wants to enter Hong Kong Island. The source of funds shows that this income is closely related to the retail of Hongdou, so it needs to pay taxes. This financial regulation is to prevent tax evasion."

“That’s when I need to take advantage of the double taxation agreement.”

"I registered a company in Hong Kong and used it to control two new offshore companies. The two new offshore companies held cross-shareholdings with the offshore companies that previously withheld profits. I took advantage of the fact that the offshore companies' business information was not filed or verified, so that the Hong Kong tax authorities could not find the specific source of profits. I then took advantage of the rule that dividend income obtained from countries that signed DTAs with Hong Kong is exempt from withholding tax rates, and brought the money into Hong Kong without paying taxes."

"There are so many ways to avoid taxes, such as using the relaxed trust system of offshore islands to achieve ownership isolation, business expense deductions, research and development expense deductions, capital expenditure depreciation, book loss, unlimited carryforward tax deductions, etc."

"No." Ajie felt dizzy after hearing this and shook his hands. "Why make it so complicated? There will definitely be loopholes to avoid taxes in the end. Taking off pants to fart is a waste of time."

"This is not a waste of effort." Four Eyes laughed and said, "Only big monkeys can carry out complex tax avoidance. Ordinary people are not eligible to avoid taxes. Just pay the taxes honestly."

Ajie blinked and didn't react for a moment.

Wang Yaotang suddenly smiled and said, "On the surface, everyone pays taxes. The richer you are, the more you pay. This makes ordinary people feel that it is fair and just. In fact, the rich people's money is returned in full, and the people's money is divided into 30% and 70%!"

"Ah? Split the bill 70-30, who gets 30 and who gets 70?"

"Of course it's the British Hong Kong government 3 and the wealthy 7."

"how come?"

"Of course not. Investment in public services doesn't cost money. For example, cities have to buy electricity from power companies, and the money goes to the power companies. There are other things like public transportation, public housing, medical care, etc. There are too many."

"Damn it, it's so fucking dark!" Ajie slammed the table in anger, "This is not giving people a way to survive, it's a rebellion!"

The bespectacled boy gently poked Ajie a few times, "Pujie, you will be a wealthy man soon. I will return all your money, and you have to share the people's money too!"

Ajie's expression froze, he blinked, and slammed the table again, "It's said that the greater your ability, the more money you make. Every penny is clean, why are you being blamed!"

"As for your inability to make money, why don't you look for the reasons yourself sometimes? Has your salary increased over the years? Have you worked hard?"

Everyone laughed.

"Ajie is already a mature capitalist. The capitalist's face is so ugly!" Wang Yaotang said with a smile.

Ajie raised his head and was proud!
After laughing and joking for a while, Wang Yaotang got up and prepared to go to Jiang Zhizhen Law Firm after the matter was settled.

Whether it was a lawyer or a banker, he could only count on Jiang Zhizhen to help him.

Seeing Wang Yaotang was about to leave, Ajie subconsciously asked, "Old Dong, you're the only one who doesn't care about him anymore?"

"Oh, yes." Wang Yaotang picked up the phone and called Tigudong again.

"What's the rush? Are you worried about letting Lao Dong stay in jail for a while longer?" When Ti Gu Dong opened his mouth, a sour smell floated over along the telephone line.

"Listen to my excuses." Wang Yaotang laughed, "I don't care about him, but my acquisition plan must continue. With official intervention, I have to know who my opponent is so that I can formulate an acquisition strategy."

"Pujiezi, do you still take me seriously? The society must be involved in this matter!" Qigudong cursed.

Wang Yaotang raised his eyebrows, "You mean the opponent is not strong? The police have no intention of intervening, they can handle it! I feel relieved when you say that, bye!"

Hearing the busy tone on the phone, Chi Gudong froze in place, and then threw the phone on the table, "How dare a loser hang up on me? You are such a jerk!"

"Sure, I'll let Xingtang do it." Uncle Niu put down the teacup and said with a smile.

"You're the only one who talks too much!" said Qi Gudong unhappily.

A few old guys burst into laughter.

On the other side, Wang Yaotang curled his lips. He wanted 20% of the shares just for finding out some information. What a wishful thinking!

If you want shares, sure, just exchange them for resources!
I called Jiang Zhizhen and asked him to help me get some information, and also told him about the idea of restructuring the company.

……

PS: The next chapter will be finished within an hour. I ran into a writer's block, so I deleted and cut more than 2000 words...

(End of this chapter)