American Entertainment: Starting with playing the role of Little Beaver

Chapter 79 Count the money first, regardless of what they do.

Warner Bros. Chairman Barry Mayer kept his promise. Upon returning to Los Angeles, he instructed his staff to liaise with Isabella's people and settle the box office revenue sharing for "The Voice".

When the time came to June 1, 2003, 5% of the global total of 3.73 million, or $1865 million, was deposited into Isabella's account by Warner Bros. as scheduled. Uh... to be precise, $932.5 million went to Beaver and $932.5 million went into Vivian's bank account; the former was 2.5% of the script's royalties, and the latter was 2.5% of the production royalties.

With the dividends arriving, a new problem arises: paying taxes.

Since these two sums of money are not considered Isabella's personal income according to the accounting rules, Warner is not required to withhold and pay taxes on Isabella's behalf under the minor provisions of British law; she will have to pay the taxes on these two sums of income herself.

So, here comes the most crucial point...

“Uh…Isa, your total income over the years is indeed 1450 million, but you currently only have 640 million in your trust account.”

"Of the difference, about 650 million was deducted under the name of tax, and the remaining 160 million was withdrawn by my mother under the name of daily living expenses. 20%, 1450 million minus 650 million equals 800 million, and 20% of 800 million is 160 million."

Now that she had received the largest sum of money in her life, Isabella wanted to know exactly how much money she had earned in the four years since her debut. So she looked at her personal income statement, which was the contract she signed with Warner.

Immediately afterwards, a sum of 1450 million yuan—a combination of real film salary and fake endorsement—appeared before her.

She admitted that she felt very pleased with the number.

Because she has only made three movies so far.

Then, two of them are movies that could win without even trying.

It's already pretty good to earn this much from a project where you can win without lifting a finger!
but--

But——

She paid 650 million in taxes??
The little beaver's eyes widened at her older sister's words.

With a "whoosh," she darted directly to Catherine's side.

As she reviewed her income statements, Catherine also looked at her trust account statements.

So when the real deduction details, backed by the bank and with legal effect, appeared one by one, the little beaver, who was initially overjoyed, suddenly felt like the sky had fallen. She turned her head with difficulty and looked at her mother in disbelief.

Vivian pursed her lips, using silence as a way of saying no.

The endorsement from its mother gave the little beaver a puppy-like face.

His mournful appearance made his mother and sister want to laugh, but they couldn't; the little guy was sad.

Sitting beside him, Valentine, the bald-headed O'Connor, said softly, "Uh...Isha...there's nothing we can do about it. Because you're underage, your income account is directly monitored by the government, so..."

"It can't be operated."

As the Heywood family's private lawyer and legal counsel for Beaver Company and Marmot Company, he rushed over to provide legal education after learning that a large sum of money had been deposited into the bank accounts of his employers and the companies that hired him.

He wanted to remind his employer to pay taxes.

Such a large income would be very troublesome to deal with if taxes were forgotten.

He wanted to remind his employer that paying taxes directly through the normal channels would result in a significant financial burden—

$1865 million is approximately equal to £1182 million.

In the UK, individuals earning over £15 annually are subject to the maximum tax rate. Businesses do have a slightly lower tax rate, but this requires offsetting income from business activities.

Does the Beaver Company only have income and no expenses?
Or, to put it another way, the biggest expense Beaver has ever made since its founding was spending $25 to buy "Little Miss Sunshine".
If that's the case, then the tax payable on the £1182 million income is not much different from Isabella's personal tax expenditure of £1450 million, even if half of it goes into the company's accounts.

"Oh—Uncle Valentine—I didn't mean to blame you—"

The girl waved her hand. "I know it's hard to keep track of my personal income, but... that doesn't stop me from being sad, does it?"

"After all, this 1450 million was earned through my hard work filming day and night."

"The acting profession requires 365 days a year, no rest..."

At this point, the little girl suddenly fell silent.

It wasn't that she didn't want to continue, but she noticed that her mother and the bald man were looking at her strangely, while her older sister...

Turning her head away, Catherine's face was full of disdain.

"Okay, actually it's not that tiring."

Isabella has stopped pretending.

Yes!

Isabella was heartbroken after learning that she had paid 650 million in taxes!
But this heartache only lasted for a second!

Because she earned that 1450 million very easily!

and so……

Since you've already paid it, that's fine.
Of course, if one can legally avoid certain points...

Isabella considered herself an ordinary person; she didn't possess such lofty ideals.

And her theory of 'hard work'?
Just kidding~
"Um, Uncle Valentine, do you have any good suggestions regarding profit sharing?"

Since no one was playing with her, Isabella changed the subject.

Seeing that the little guy had stopped being dramatic, everyone started talking about serious matters, and the bald guy's suggestion was to buy land.

And it's for purchasing agricultural land—

"Israel, Keisha, Mrs. Haywood, we in England have always encouraged investment in primary industries..."

Anyone who follows social news should know that wealthy people in capitalist countries often prefer farming.

Buy some farmland here today, buy some farmland there tomorrow, and the day after tomorrow... hey, you'll become a landlord.

That's right, we're talking about Bill Gates with his thick eyebrows and big eyes.

On the surface, the investment logic of these wealthy individuals is very simple: first, food is a necessity for human life and belongs to strategic resources, so large-scale investment is sure to make a profit; second, land is a non-renewable resource, so investing in land is equivalent to investing in everything.

Both of the above logics are valid, but in addition to these two, agricultural land has another value: tax reduction.

For example, in the UK, if you earn ten million a year and use all of that money for farming without withholding tax, your overall tax rate can drop from a two-digit number starting with 4 to a single-digit 7.5%.

That's how exaggerated it is.

Therefore, in a capitalist society, when your income has no costs to offset, investing in the primary industry is the best choice. Moreover, this investment does not require you to manage it yourself, because someone will manage it for you.

"The specific operational plan is as follows—"

The bald man said:

“We simply acquire existing farms and then lease them back to the original owners so they can continue operating. On the surface, this seems foolish because the farm owners are agricultural producers and operators. When they are engaged in agricultural production, it doesn’t make sense for them to sell their farms to us and then lease them back to farm.”

"But the problem is that there aren't many real farmers left in modern society."

“Nowadays, farmers can’t make much money just by farming because they can’t price their agricultural products like they used to do in small markets. Agricultural product prices are controlled by grain merchants who control the market, and the profits are set by them and are very low.”

"Therefore, if farmers want to make big money now, they can only develop land by converting wasteland into arable land."

"For example, farmers sell their agricultural land, which is currently in production, to wealthy people. Then, they use the money from the wealthy people who bought the farms to buy wasteland from the government. As long as they can develop the wasteland into agricultural land, the value of a piece of land can increase by at least 300 times, and in good locations, the return on investment can even reach 1000 times."

"Of course, this is just a very simple comparison, because converting wasteland into farmland is not easy. It requires a lot of time and manpower. In addition, the change of land use also requires government certification. Therefore, those farm owners who convert wasteland into farmland earn their money through hard work."

"However, compared to directly farming, the return on this business is still very high..."

As the bald man recounted his story, the world of tax havens belonging to the wealthy came into view of the Heywood family.

After a brief discussion, everyone agreed that the plan was quite good.

This is not only because the idea is mature, the process is simple, and it is very convenient to operate, but also because Isabella and Vivian both believe in the saying that "money, once it reaches a certain level, is just a string of numbers."

They all understood that if someone holds a lot of money but cannot convert it into means of production, then they are nothing more than a fat pig.

So……

They don't want to be pigs.

"Valentine, can you handle this matter?"

Now that a consensus had been reached, Vivian smiled and looked at the bald man.

Isabella, relying on her older sister, acted as an innocent and naive girl.

Hey ~
Being a minor is still quite useful!
If you don't want to talk, I'll just ignore you!

And nobody dared to object!

You can't force a cute 13-year-old girl to participate in business negotiations, can you?

"Of course we can represent you; our law firm has a wide range of services."

Seeing that his suggestion had been accepted, the bald man immediately became very happy.

He took out the prepared documents and continued, "Agricultural land in Scotland is generally £350 per acre, while in England it is generally £450 per acre. £1182 million can usually buy 3 acres of agricultural land."

"Then, our country's tax year runs from April 1st to March 31st of the following year. So, when the box office revenue from 'The Voice of China' arrives on June 1st, we have plenty of time to plan."

"What if we encounter something in the future that requires money urgently?" Vivian wanted to understand the process clearly.

"Oh—this is even simpler—"

The bald man understood Vivian's meaning: "Agricultural land mortgage loans are very easy to obtain, with a loan-to-value ratio of 50%-60%."

"This is actually a common option for many people, because they can use the money to do other things."

The wealthy who have gone to the point of tax avoidance have all used leverage, especially the wealthy in Europe and the United States. After tasting the sweetness of financial exploitation, no one is willing to do business that involves hiring people to tighten screws and making a penny or two. Therefore, when talking about mortgage loans, the bald man's tone was quite natural, and he was obviously a veteran who had done it many times.

However, Isabella doesn't really need this thing.

Because she was already running out of money.

The £1182 million was just the first payout from "The Voice".

The development of videotapes, soundtracks, CDs, and variety shows is still not finished.

Then, judging from the current situation, the latter two will each receive dividends of over 100 million.

The last item, hundreds of millions, could potentially be calculated annually.

When those in the entertainment industry can't afford much in bookkeeping, they'll have to rush to spend their profits as soon as they receive them.

Otherwise, half of them would have to be taxed.

And if you close your eyes and open them again, you'll have to spend tens of millions more?
what--

This really is—

Pain—

This is no life for a human being!

hee hee~
Vivian asked about cashing out because she wanted to understand the transfer of agricultural land.

Since this stuff is easy to sell, buying land to avoid taxes... oops... I mean, investing in the primary industry and ensuring food security for Daiying is what they want to do most. And the person who helps them realize their dream is the bald guy.

With the agency agreement signed, the bald man started rubbing his hands together like flies.

Because he can make money too.

The service agreement between the Bald Law Firm and Isabella was as follows: Isabella would pay the Bald Law Firm £15 per year, and then the firm would be fully responsible for all legal matters concerning her family and company. Of course, litigation would be charged separately.

In addition, if there are matters outside the company's business operations that they need to handle, such as this land purchase, they can also take a cut of the transaction, which is 3% of the contract amount.

So when Isabella and her friends were going to put up £1182 million to buy land, as long as the bald guy finished the job, he would earn £35. That's a pretty good bonus. It's true that lawyers are high-paying professionals, but looking at the industry as a whole, let alone earning a million a year, even earning fifty a year would be considered top-tier in the industry.

However, Isabella didn't care about these expenses.

In a capitalist society, you can't skimp on lawyers, no matter what.

Because many things, in the end, are actually resolved through legal means.

Does a capitalist society require knowledge of the law?
"Kesha."

"Ok?"

"You must study hard..."

Why are you suddenly bringing this up?

"Because our family needs to have a lawyer, right? If you don't understand the law, you'll find it really hard to get by in society!"

As the bald man left, Isabella nuzzled her older sister and started planning for her future.

Although her idea wasn't wrong, but...

"Oh—Isa—forget about studying law—I have so many things to do right now—"

Catherine shook her head and said, "I helped you expand the script for 'The Voice'... I drew the cover and illustrations for your mini-disc... Your personal cell phone has always been with me, and I answered your private calls for you..."

"And now, you want me to study law?"

"I really don't have time."

Although everything Catherine said was true.

She may not look busy right now, but she is actually very busy.

Let's take answering the phone as an example.

After Isabella tossed her her phone, she essentially became an assistant who was always on call.

Then, earlier, when discussing the design of the mini disc with Warner, in order to make fans feel that the mini disc was worth the price, Isabella also asked her to draw a bunch of little beavers. That was the result of two months of hard work, not something she came up with on a whim.

Of course, Catherine didn't paint it for nothing.

Whenever a product uses her artwork—which is actually Isabella's miniature disc—she receives 1% of the total sales as her commission, according to their contract with Warner.

It's like helping their own people make more money.

As for why it's only 1%?

Because they do not sell cartoon images of beavers.

The copyright of the artwork belongs to Beaver.

Hehe ~
but--

Even if Catherine's words made sense, Isabella didn't want to listen.

"Sis—not to mention that you don't have to do things like drawing covers, illustrations, and writing scripts every day, just talking about studying law, you don't want me to be swindled by lawyers and end up penniless and homeless, do you?"

"Can you bear to watch your sister stand on the street in the cold winter, holding a handful of matches and hawking them?"

Isabella widened her eyes and started acting cute.

Tears welled up in her bright, sparkling eyes.

This scene made Catherine's lips twitch. She clearly remembered that four years ago, Isabella had tricked her and her mother by being cute and innocent before boarding the train to Leavesden.

She was deceived back then because she was kind-hearted and wanted to share some of the burden with her family.

but now?
Ever since she and her younger sister expressed their desire to contribute to the family, this brat has been pushing all the pressure onto her!

Isabella really does nothing but act and does everything else!
Even a failed man has the responsibility that comes with great power!

But what definition did Isabella give her?
Since you're willing to endure hardship, then you can endure endless hardship!

Thinking of this...

"Humph."

Catherine rolled her eyes at her younger sister and said, "Alright, alright, stop imitating the Little Match Girl here."

"I need to think about studying law, because I'm not interested in it."

"Then, if I actually study the law..."

"Isa, just you wait, I'll definitely be the first person to lie to you, and I'll make sure you're completely fooled!"

"Don't think I don't know what you're up to!"

"You lazy bum!"

"..."

Isabella narrowed her eyes.

She admitted that she did have a lazy side when she asked her older sister to do this and that.

Because she felt certain things were important, but she was too lazy to do them herself.

So, I'll leave it to our own people.

Of course, there's also the reason why talking is more satisfying than doing.

Catherine was easy to fool before, but now, has she realized it?

This……

The young girl, sensing that her older sister was no longer easily fooled, pouted and began to conceal her 'mischievous intentions'—

"Mom—look at Keisha—she yelled at me—"

"..."

Catherine was speechless at the sight of the villain accusing her first.

However, the next second, she raised her arm again, "Do you believe I dare to hit you again?"

Vivian, who was sitting right next to them and witnessed everything, couldn't stop laughing.

In her eyes, the argument between her two daughters was actually quite childish.

But she couldn't be bothered to care.

So he changed the subject, saying, "Okay, it's already four in the afternoon. Let's discuss where to eat tonight? How about we skip the cafeteria tonight? We've come all this way to Oxford, let's eat out!"

The scenes of Hogwarts Hospital in the Harry Potter movies were filmed at Oxford Theological Seminary.

Therefore, when there are many scenes of school hospitals in "Azkaban", it was inevitable that this location would be chosen for filming.

Today, the crew is filming Ron's scenes; Isabella doesn't have any scenes, so she's free to move around.
Therefore, when her mother expressed a desire to go out and relax, Isabella, who didn't want to compete with her older sister, readily agreed.

Then, the family slipped out of the hotel.

However, no sooner had they left than someone came knocking on their door.

That's Robbie Jr.

"What? Isabella isn't here? Did she go to the Shanghai Theatre Academy?"

Little Robbie looked at the film crew members in the hotel with a puzzled expression and said, "But I checked her schedule before I came. She doesn't seem to have any scenes to film today, right? She should be resting?"

"Yes, Marge, you're right, Isha definitely has no chance today."

The staff member said, "So Isha went out to play."

"She seems to have left not long ago? Did she go out with her whole family? Kassa Vivian is gone too."

"Is it urgent for you to contact her? You can call her! Or I can call her for you?"

"No, no, no -"

Before the staff member could even take out her phone, Robbie quickly stopped her, saying, "I do need to speak with Isha, but it's nothing urgent. I can wait for her to come back, no problem."

Since Robbie had already said so, the staff didn't insist, but at the same time, she also had a question.

"Wait a minute, Margot, haven't you been in Livingston the whole time?"

"How did you get here? Where's Melina?"

Although the producers of Harry Potter allowed Robbie to stay on set, she was not a member of the crew. So, in order not to cause trouble for the crew, whenever Isabella needed to go out on location, Robbie would stay quietly in Leavesden.

Of course, Robbie isn't alone.

That's illegal.

Warner staff were always present at Leavesdon, and Isabella even found her an assistant.

That person is Melina, as the staff are referring to her.

Melina is actually a Warner Bros. employee. She has been working at Leavesden since "Sorcerer's Stone". She is very efficient and kind. The reason she was poached from Warner Bros. to Marmot was simply because Robbie Jr. needed an assistant.

No matter how mature Robbie is, she is still a minor and needs to be looked after.

Furthermore, she is going to the United States to film a movie next, and it would be illegal for her to go alone.

Because everyone was aware of the above situation, the Warner Bros. staff member who was running with the crew became curious after noticing that there were no familiar faces around Robbie. Her question made Robbie laugh and say, "Oh, Melina is parking the car."

"We drove here."

"She's parking the car? Is it just the two of you this time?"

"No, no, no, there's one more person."

"There's another person? Who? Where?"

“Look, it’s him…”

As he spoke, Robbie turned and pointed.

About ten feet away, a burly man with a buzz cut and wearing sunglasses appeared in front of the staff.

The staff had already seen this guy.

Because he looked quite energetic, the staff thought he was someone's bodyguard.
but--

No?

Robbie's guidance and the staff's doubts prompted the burly man to step forward quickly.

He took off his sunglasses, extended his hand, smiled broadly, and introduced himself.