american tax collector

Chapter 343 Silicon Valley Shock (2)

"Okay, I'll go there now."

David immediately stood up, pushed the door and walked out.

In the conference room, the expressions of the mid-level company leaders in Silicon Valley instantly tensed when they saw David walk in.

Everyone present knew very well that David summoned them not just to have tea and chat with them, but most likely to kill them like chickens to warn the big monkeys like Gu Ge and Wei Ruan.

"Everyone, don't be so nervous. Relax a little."

David said something comforting after sitting down, and continued, "I believe everyone here is well aware that our IRS announced a tax clearance operation code-named 'Storm' a few days ago. What do you think of this?"

Everyone present looked at each other, but in the end no one dared to express their opinion.

"Mr. Christian, what do you think?"

Seeing that he was being called, the man named Christian had no choice but to bite the bullet and reply, "Since the IRS has decided to start this tax audit, and the White House has also expressed its support, then naturally both I and our Cisco company support it."

"Okay, Mr. Christian, I appreciate your frankness, but support is more than just words. You have to show your actual actions. What do you think?"

"That's natural. When I get back, I'll mobilize the finance and tax departments to conduct a thorough check to see if our company has any tax problems."

He knew how powerful David was, so he was smart and did not directly deny that his company had no tax problems.

"No need to go through so much trouble. I'd better remind you directly. In 2015, our IRS issued a policy of 'technology transfer tax incentives' for Silicon Valley. The original intention of this policy was to allow your growing companies to share technology with those startups to help them grow. And your Cisco company, relying on this tax incentive policy, has avoided more than 20 billion US dollars in the past seven years. Am I right?"

After hearing what David said, Christian's expression changed instantly. If someone looked closely at his lips, they could even find that they were trembling slightly.

In fact, it was not just him, many people present also became uneasy.

When the IRS introduced this policy to Silicon Valley, its original intention was indeed, as David said, to let them help drive the growth of small and start-up companies.

But then again, although these companies are very tempted by this tax incentive, the core of every company is technology. If they share technology with small startups, their value will be greatly reduced.

There is also the risk of the apprentice starving himself to death.

But later on, they found a way to have the best of both worlds.

That is, as long as they register some shell companies or find companies that have no development prospects, sign some agreements with these companies, and then share their technology with them, they can obtain tax incentives without losing their core technology.

This policy later gradually became a means for major Silicon Valley companies to evade and avoid taxes.

To this day, we cannot say that 100% of the companies in Silicon Valley are taking advantage of this tax incentive loophole, but at least more than 50% of the companies are doing so.

The reason why Christian and many other people who were summoned were nervous was that since David had pointed it out, it meant that he knew the trick. If they continued to investigate this point, they would not only be charged with tax evasion, but they might also be charged with defrauding tax benefits.

They are all listed companies. Once they are charged with these crimes, they will inevitably be like Amazon, who will suffer a lot if he does not die.

"Mr. Christian, isn't your company Cisco involved in this tax policy?"

Although David was questioning on the surface, in fact, through the review function of Gold Finger, he had already confirmed that Cisco was definitely involved in this policy.

"No, no, no, our company has indeed participated in this policy, but I need to go back and ask the department head for details. How about this, give me two days, and then we at Cisco will give you, Inspector General David, an explanation. How do you think?"

It would be easy to find out whether or not someone participated in this policy, and David pointed it out in front of him, which meant that it must have been checked, so Christian dared not lie with his eyes open.

"Okay, then I'll give you two days. I hope you can figure this out!"

David turned his gaze to the other man on the left and asked, "Mr. Chenko, what do you think of our tax audit this time?"

"Of course, I and our Aolian Company also support it. After all, if there is no IRS, our country will be in chaos."

The man named Qinke also complimented him.

But David would not let him off just because of his compliments, and continued, "In that case, you guys in the Olympic League should also do something to show your support, right?"

"express……"

Chenko looked hesitant.

"Forget it. Let me remind you that in 2016, the IRS launched a tax incentive policy called 'Technology Innovation'. Do you remember it?"

After saying this, Qin Ke's expression became tense.

As the name suggests, the technology innovation tax incentive is a policy launched by the IRS in order to encourage these Silicon Valley companies to constantly innovate in technology.

The original intention of this policy was very good, which was to encourage these technology companies in Silicon Valley so that their technology could improve with the times.

However, technology will always encounter barriers and there will always be times when innovation cannot be achieved.

But what if these companies are unable to create new technologies and are unwilling to give up this tax benefit?

Soon, some companies in Silicon Valley came up with a good way to steal the show.

For example, they have innovated a new technology, which is '12345'. After enjoying a round of tax incentives for technological innovation, they can reorganize this technology into multiple combinations such as '54321', '12354', and '53124'.

Anyway, the IRS is responsible for collecting taxes, and technology is not their strong point. With the use of some tricks, this tax preferential policy naturally became theirs.

The reason why Chenko was so nervous was that over the years, their Aolian company had indeed evaded a lot of taxes by relying on the policy of stealing chickens.

"We at AOL have indeed received a lot of tax benefits because of this policy, but that's also because we have made a lot of technological innovations and we deserve it, Inspector General David."

After some mental struggle, Chenko gritted his teeth and said this.

After all, he still couldn't bear to give up the tax benefits that this policy brought to their company. If he admitted that their company was indeed stealing this policy, then their company might not be able to enjoy it in the future.

So he decided to take a gamble, betting that David didn't understand the technical issues and didn't have sufficient evidence in his hands.

"Haha, Mr. Chenko, it's true that I don't understand your technology, but that doesn't mean there aren't other people in America who understand it. So, since you said that your Olympic Federation has enjoyed this policy for many years because of its technology, then our IRS also has several friends in the Academy of Engineering who understand this technology. I will immediately ask them to come over to study and analyze it. You Olympic Federation will cooperate, right?" "This..."

Qinko's face instantly turned purple.

You know, the Academy of Engineering is the highest-level institution in the American technological community. If we invite some of the big names here, they would probably be able to see through the so-called technology of the Academy at a glance.

"What's wrong? Are you not confident in your company's technology, or is it that your so-called technological innovation does not meet our policy standards?"

"Forget it, Chief Inspector David. I take back what I just said. When I return, I will have someone check our company's tax status and give you an explanation in two days."

Having said this, Qinke knew that if he continued to quibble, he would end up in trouble, so he had no choice but to compromise.

"Check it out for me. If you miss even a dime, I will hold you responsible. Do you understand?"

"clear……"

Looking at David's fierce look, Qinko felt a little regretful at the moment. He regretted that he should not have quibbled. Now he has offended the other party, and he doesn't know if he will be in big trouble next.

In the following time, David questioned other people present one by one.

With the example of Chenko in front of them, naturally no one dared to offend David again. They all said that they would check the tax situation of their own company carefully after returning and give an explanation in two days.

……

At the gate of the Bay Area Police Station.

It has been more than an hour since the heads of major companies arrived here, but there is still no sign of them. This naturally caused various speculations among reporters on the scene and people online.

“They’re coming out! They’re coming out!”

At this moment, the shouting of a sharp-eyed reporter attracted everyone's attention. Looking up, they saw the heads of major companies who had entered before coming out one after another.

"Look at the expressions on their faces... they seem a little quiet..."

"It's more than just silence. Look at the blond man on the right. He is the CEO of a Silicon Valley company called Aolian. Look closely at his expression. He seems to be about to cry. He must have been severely lectured by Inspector General David in there!"

"These mid-level company managers are all upset, which proves that their respective companies' tax revenues are likely to have problems, and the IRS has caught them..."

"..."

Based on the expressions shown by these people, people who were paying attention online also made various analyses.

In the conference room of Google's headquarters building.

Representatives from various companies invited by Ryan were still here, but at this moment each of their expressions was not much better.

Because they have already seen from the live media broadcasts that most of the mid-level companies that were reported were caught by the IRS.

Otherwise, their faces wouldn't look as ugly as if their mother had died when they came out.

"Ryanna, help me contact Chenko, Christian...them and see if they can come over."

Ryan gave instructions to the assistant beside him. Although he had already guessed what was going on from the expressions of the people on TV, he still wanted to hear for himself what was going on.

Soon, the assistant named Rui Anna came back and said, "Mr. Ryan, Mr. Chenko and the others said they have urgent matters to deal with and can't come for the time being, but Mr. Christian said he could come over. It will only take 15 minutes to get there."

Ryan nodded and waited patiently with the representatives from various companies.

Fifteen minutes passed quickly.

The door of the conference room was pushed open, and Christian, who had just returned from the Bay Area branch, walked in. After looking around at the people present, he said, "All the giants in Silicon Valley have gathered here. This is a rare scene..."

"Sit down, Christian. I believe you have guessed the reason for calling you here. What we want to know is what happened after you were summoned by him?"

"What else could it be? David from the IRS asked us to cooperate with their Operation Storm tax cleanup."

Christian sat down, but looking at the worried and frightened giants in front of him, he felt a lot more relaxed psychologically.

He is now like a sentenced prisoner, and he is somewhat depressed psychologically.

But these people in front of them would definitely not surrender as easily as they did, and as for the consequences these people would face, it was naturally difficult to predict.

"So you agree to cooperate?"

Ryan asked slightly nervously, while the others listened with bated breath.

Although these middle-level companies are nothing to these giants, if they surrender collectively, they will be under great pressure.

"We small companies don't have the same big background as you giants. In order to survive, we can only cut off our own limbs..."

"Damn it. We are both Silicon Valley companies. We rise and fall together. How could you do this?"

Before Christian could finish his words, a representative from Weiruan interrupted him angrily.

Christian looked at him with dissatisfaction and retorted: "Mr. Schrantz, do you think we at Cisco are willing to do this? We have no choice!"

"In other words, he has caught you, Cisco?"

This time it was Ryan who was asked.

"In fact, not only Cisco, but also the tax situations of all the companies that were summoned have probably been thoroughly investigated by David!"

"what!"

Although everyone had been mentally prepared, they couldn't help but gasp when they heard that David had found out the secrets of all these companies.

(End of this chapter)