american tax collector

"Don't try that on me!"

Hearing this, David became inexplicably angry.

Let’s not talk about the fact that the three major groups use foundations to provide campaign funds to members of Congress.

In the United States, inheritance tax is very high. As long as the amount is greater than 250 million US dollars, a 50% tax must be paid.

This is why many wealthy people always like to make "naked donations". People who don't know this may think that these wealthy people are very kind and have a strong sense of social responsibility.

But in fact, the so-called naked donations of these wealthy people are basically for tax evasion.

Because according to federal tax laws, as long as the donation is used for charity, you can enjoy a 10% tax deduction.

Therefore, in order to evade taxes, these wealthy people will set up a charitable trust fund in their own name during their lifetime.

He then donated all his wealth to the foundation in installments, claiming that it was used for charity, and then enjoyed a 10% personal income tax reduction.

According to the legal rules for foundations, as long as you donate 10 billion US dollars, you can enjoy a tax refund of 1 million.

Why should we donate in installments?

The focus is on personal tax reduction.

If you donate too much at one time and the 10% personal income tax exemption is not used up, it will be wasted, so you should donate in installments to maximize your benefits!

But this is not the most outrageous thing. The most outrageous thing is that after this fund is established, the US government will not step in and will not have the authority to take over. It will be controlled by the rich himself or his children.

No outsider has the right to interfere with where all the money goes, not even the IRS.

As for its internal rules and regulations, they are confidential. Not only will they not be disclosed to the outside world, even the IRS has no right to review them.

They only need to donate 3627% of their total assets to charity every year in accordance with Section 5 of the U.S. tax code to legally own this wealth.

Of course, these funds no longer belong to personal wealth in name, but to social wealth.

Therefore, the fund’s future investment income will no longer be subject to personal income tax, and will be taxed directly at 1%.

Here comes the point. It’s not 50% or 10%, but 1%!

All income from the fund's investments is taxed at 1%.

Other tax avoidance methods, as well as tax havens such as the Cayman Islands and the Virgin Islands, are far weaker than foundations.

When David first thought of introducing the prototype of the tax avoidance bill, he actually also considered introducing a bill targeting foundation taxation.

But after careful consideration, I decided to choose the former.

But then again, the foundation's tax evasion methods are like a hedgehog that the IRS cannot bite. But apart from introducing bills to target it, it doesn't mean that David can't really get hold of them.

At least now David has found some ways to deal with them from this manager through the system's review function.

"This...Inspector General David, what do you mean by this?"

Being attacked so close to his face, Mo Ang also got a little angry.

Who can gain a foothold on Wall Street without some capital background?

What's more, he is now working for the three major groups.

So even though he was a little afraid of David, he still had some confidence.

Moreover, the rules of the foundation have been followed to this day, and I have never heard of any foundation being investigated for tax issues.

Even if David has solved the tax avoidance law, he can't be so crazy as to investigate the foundation before the law targeting the foundation is introduced, right?
"I don't mean anything else. I just suspect that your foundation is involved in some tax issues!"

David tapped the tabletop in an orderly manner with his fingertips and spoke expressionlessly.

"impossible!"

"Most of the funds in the foundation I control are used for charity. How could it be involved in tax evasion? Moreover, the federal law of the United States stipulates that your IRS has no right to review our affairs. I don't need to answer any of your questions!"

Mo Ang refuted firmly, and his words were even filled with a tone that did not allow for negotiation.

But David was not in a hurry. He leaned back slightly and said in a relaxed manner, "That's right. According to the power granted to you by the tax law, you don't need to answer any of our questions or conduct any review. But you seem to have made a mistake. I didn't ask you to answer any questions, nor did I mean to conduct any review on you!"

Mo Ang was stunned when he heard this.

Since you don't need me to answer any questions and don't want to examine me, why did you call me here?
Why are you investigating my foundation again?
Before Mo Ang could continue thinking, David spoke up: "Listen to me, according to federal tax law, neither the government nor the IRS has the right to investigate charitable foundations. There is a prerequisite for that!"

"The premise is that you must... I wouldn't say must, but you are supposed to use the money for charity. But have you really used it for charity?"

There is no perfect way to evade taxes in this world.

The same goes for foundations. The original intention of establishing foundations was not to evade taxes, but to do charity, so this is the biggest loophole!

As long as it is found that the funds do not flow into charity but into the personal pockets of certain people or become campaign funds for congressmen, the IRS has the right to intervene!

Of course, the IRS has paid attention to this before.

However, since the foundation's financial data does not need to be disclosed to any person or organization according to the law, they have no way to investigate and can only give up.

But David is different now. He has the ability to scrutinize, so he doesn't need to conduct any investigation on the foundation.

You only need to use the system to examine some key people to obtain detailed information and evidence!
Mo Ang's expression changed slightly, but he immediately continued to refute: "Inspector General David, according to tax laws, your IRS cannot interfere with the flow of the foundation's funds..."

"Yes, you are right. We cannot interfere with the funds injected by the foundation. However, we have the right to interfere with the income generated by the investment of the injected funds!"

As soon as David finished speaking, Mo Ang immediately retorted: "Inspector General David, what you said is wrong. According to Section 3627 of the tax law, it means that all funds in the foundation..." "Pah!"

Before Mo Ang could finish his words, David pulled out a tax law book from the table and smashed it on the table, which scared him.

"Mr. Moang, do you think you know the tax laws better than I do?"

"This……"

Mo Ang was speechless.

Then, David turned the charter to page 78, turned it around and pushed it in front of Mo Ang, saying, "Look carefully, the tax law specifically stipulates the 'amount injected by the foundation', so it does not include the benefits generated by the foundation, do you understand?"

Mo Ang took a closer look, and then his expression became a little gloomy.

Because the foundation had never been investigated, he always believed that he had no right to investigate where the foundation's funds went.

But if you really look at the words carefully, David does have a point.

But so what!

Even if the IRS has the right to investigate the benefits generated, it also has the right not to cooperate with the investigation.

As long as he doesn't cooperate with the investigation and all data is kept secret, he doesn't believe that David can do anything to his foundation!
Thinking of this, Mo Ang felt much more at ease. He crossed his legs and said, "Well, Chief Inspector David, what you said makes sense, but so what? What can it prove?"

"As far as I know, your foundation is first and foremost a 'charitable trust institution'. In this charitable institution, your clients have deposited a total of more than 500 billion US dollars. These funds, through investments in industries in the United States and around the world, have a net profit of more than 10 billion US dollars per month!"

"But you can't use this money, so you also set up a family fund for your clients. Every profit generated will be cashed into the family fund through the public welfare fund, which will perfectly become a personal asset. Am I right?"

Mo Ang, who was originally sitting with his legs crossed and looking calm, suddenly changed his expression when he heard these words.

Because the funds and profit data in his foundation have never been made public, how did David know about it?
In order to figure this out, Mo Ang asked anxiously, "Where did you get this data?"

"You don't need to worry about that. You just need to answer yes or no!"

“No, this is not real data!”

Although the data David mentioned was indeed true, it was not enough to shake his bosses' foundation. At this stage, Mo Ang only needed to deny it.

"it is good."

David didn't seem surprised and continued, "Red, Wordsworth, Meg... these are all former government officials. After retiring, they all joined your foundation as consultants."

The foundation offered them an annual salary of $630 million for Reid, $460 million for Wordsworth, and $ million for Merlot..."

"Of course they have to do something with the money. Every mid-term election, they take out 120 billion from the foundation to fund congressmen's campaigns and support them in the political arena. Isn't that right, Mr. Moang?"

If Mo Ang just looked a little flustered after hearing what he said just now, then David's next words made Mo Ang feel like he was falling into the abyss.

He couldn't understand. It was fine if David knew such top-secret data as the foundation's funds and revenue, but how could he also know data on consultants hired by the foundation and the funds flowing to supporting congressmen?
If these data were to get into the hands of the media, not only would the bosses behind him be ruined, but they would certainly be caught in a whirlpool of public opinion.

As the head of the foundation, how could he have a good ending?
"Of course, your clients have huge funds, and it is not enough to rely solely on the hedging of charitable trust funds and family trust funds every month, so you also planned a model. For example, you set up a company A, and after a period of operation, its valuation is said to be 20 billion. Of course, this is just a vain one, and no one will buy it."

"A foreign multinational company B bought all the business of the company for US$20 billion. After a period of operation, company B sold the company to company C for US$23 billion, and company C took company A public."

"Finally, your foundation will buy all the shares of Company A. After a few years of operation, Company A will go bankrupt, and you will make billions of dollars in arbitrage with a shell company."

"With this model, you can not only inject billions more into your fund every month, but also avoid all taxes, right?"

"So now you think we have the right to intervene?"

David didn't care what Mo Ang was thinking and told him the top-secret information he had reviewed.

"You...you...I don't admit the accusations you made!"

At this point, Mo Ang had nothing else to say but to refute with a sweat on his forehead.

But David didn't indulge him anymore. He looked at him sharply and said, "Do you need me to call in all your hedge managers for questioning? Do you think they can be as patient as you are?"

Mo Ang gritted his teeth and said, "What do you want to do? You know who my clients are!"

"So what? Do you think I'd still be afraid of this now?"

"you……"

At this point, no matter how dumb Mo Ang was, he knew that David was not targeting the foundation. He was clearly using the momentum of the passage of the tax avoidance bill to further strike at the three major groups.

"Mr. Mo Ang, if you cooperate with me honestly, I promise that nothing will happen to you. Otherwise, you will definitely be the victim they push out in the end!"

If this matter were to be exposed, it would not be a good thing for the owners behind the foundation, but as the head of the foundation, Mo Ang would be scolded by the public for illegally injecting these "charitable funds" into his private pocket and into the mid-term elections.

It is difficult to escape legal sanctions!

"What do you want?"

Mo Ang is not a fool, he certainly understands that, although everyone knows that the foundation was established by the rich to avoid taxes.

But knowing it is one thing, but if you really reveal it openly, that would be another matter.

"It's simple. I need more detailed information about the connection between your foundation and your clients, as well as the flow of each fund. I need some evidence to ensure that your clients are inextricably linked to this matter!"

"No, they'll kill me!"

"I told you I would keep you safe, but if you insist on fighting for them, you will be the first to suffer. Think about your son, he is only two years old. Do you want him to visit you in prison for the rest of his life?"

Hearing David's words, Mo Ang's face was filled with resentment, and he said angrily: "Inspector General David, I admit that you are now the most popular person in America, but my clients are not vegetarians either. Why do you think you can keep me safe?" (End of this chapter)