Investor That Can See The Future

Chapter 430

President Huh Chang-min remarked at a meeting of senior aides at the Blue House.

“It is a typical anti-social act that undermines the fairness and justice of our society for some companies and wealthy people to illegally hide their wealth abroad to avoid taxes. In order to eradicate this problem, I hope that related organizations such as the National Tax Service, Customs Service, and the Prosecutor’s Office will set up a joint investigation team and come up with a plan to cooperate with follow-up investigations, punishment, and even the recovery of criminal proceeds. When the taxation principle is set right and all citizens are equal before the law, the Republic of Korea, where justice flows like a river, can be said to have been created.”

The Blue House moved to the president’s words, and the ruling party and each institution responded to the Blue House’s move. Immediately, working-level officials from the prosecution, the National Tax Service, and the Korea Customs Service met to form a joint investigation team, joined by the Financial Intelligence Service and the Financial Supervisory Service.

The plan is to detect tax evasion and money laundering by closely analyzing the details of the voluntary report and the overseas remittance transactions collected by each institution.

It is a true all-round pressure on the issue of offshore tax evasion.

Among the chaebols, there were more than ten people whose names were mentioned after the charges were caught. If the borrowed-name property or income is hidden, it will end in tax evasion, but if the company’s funds are stolen, embezzlement and breach of trust are added.

There was likely to be a backlash, but after Chairman Im Jin-yong was arrested, the business world was walking on thin ice, so everyone could not say anything.

If only innocent people among you should be asked to throw stones, but since all of you have committed so many sins, you have no choice but to remain silent.

Unfortunately, this is the reality of the Korean chaebols.

In fact, if we want to collect taxes properly, who can openly oppose it?

Tax collection is the power of the state and the basis of maintaining the state. But no one wants to pay high taxes. So, in order to pay as little tax as possible, we are walking a tightrope between tax saving and tax evasion.

Beyond the intensification of the National Tax Service’s investigation, the method of extorting funds is also becoming more sophisticated. Is it a chase and chase game?

As demonstrated by the Panama Papers case, it is now common to establish corporations in tax havens.

In any case, even if a law that strengthens the voluntary reporting and punishment of offshore assets is enacted, we will not be particularly hurt.

OTK Company has a corporation in Dela Island, and everyone already knows about its equity relationship.

Some of the company’s assets are cash, and most of it consists of stakes in several companies.

Karos, OTK Games, Face It, M Pizza, Arkit, Tenway, etc.

All of these companies are also unlisted companies, so it is not easy to accurately evaluate their values. It’s just the media talking about hundreds of billions or trillions of dollars.

According to the voluntary declaration form, the exact financial position of the corporation must also be submitted.

In this way, the government will be able to see how much stake in which company OTK Company owns and how much money has been earned by investing in it.

* * *

We first met Hyunjoo noona. The financial sector also reacted sensitively to the government’s policy changes.

It is said that a lot of inquiries came in from all over the place during the day.

“It’s the large corporations and the wealthy who are more upset than us. Because there are not one or two individuals and companies that have established corporations in tax havens. Everyone is paying close attention to the National Tax Service’s move.”

“How will this affect us?”

Hyunjoo’s older sister said as she drank her coffee.

“Well. The government cannot tax foreign corporations. However, it may be possible to transfer some of the funds to Korea, or pressurize subsidiaries to list them on an exchange.”

Most companies aim to go public. However, very few of them are actually listed.

The reason why you want to go public even if you try to pass a needle-hole review or use a shortcut such as a detour listing through a merger is because you can raise money by selling stocks to investors.

But we don’t have to. This is because OTK Company made money through various financial investments and invested in subsidiaries instead of receiving external investment.

Even if you need more investment, there is no reason to go public in a situation where there are already many places where you want to invest.

Maybe one day I’ll have to do it, but not yet.

Taegyu said.

“If you say something in Korea, why not change your nationality to the United States?”

Hyunjoo’s older sister shook her head.

“It’s not that simple.”

“why?”

“Do you think America will have no taxes?”

Death and taxes are unavoidable, and even if the FBI can get away with it, the IRS chases them to the ends of the globe.

In developed countries, the more severe the taxation, the more severe, but not less.

The same is true of the United States, which imposes additional taxes on the offshore income of its citizens. No, it’s more strict than Korea.

In Korea, it is enough to endure because there is no money to pay taxes, but in the United States, that is arrest.

The bottom line is that changing your citizenship to the US is not the solution.

“Why are you here now?”

Hyunjoo noona said while drinking coffee.

“It is the same as the arrest of Chairman Im Jin-yong. The economic situation is good, and thanks to the Saemangeum development, the approval ratings of the president and the ruling party have risen significantly. I will do whatever I want as long as the victory in the next general election is certain.”

Taek-gyu nodded his head as if he understood.

“Hmm, is it Asaengyeonfusalta?”

In the case of Saemangeum development, many domestic and foreign capitals trusted me and decided to invest. So it’s hard to get out of here now.

“If time goes by like this, there will be some who have decided that the politicians can be swayed by capital power. When it comes to Korean chaebols, it is not uncommon for companies to go over or to disband because of only 1 or 2 trillion won. On the other hand, OTK Company has a different scale. It is said that the subsidiary, Carlos, is the number one in the world market capitalization, not to mention OTK Company. It is unprecedented for a company of this size to be in a tax haven and to be an unlisted company. You see, it’s hard to stay in this state forever.”

In short, the company has grown too large to remain a tax haven. Fortunately, it is in the form of an investment company and a holding company, but if the business had been conducted directly, the problem would have escalated sooner.

“The corporate tax that Seosung Electronics paid to Korea last year alone is 17 trillion won. If we can bring OTK Company, we can expect more tax revenue.”

“We’re not making that much money.”

“Because we keep reinvesting to the point where we don’t make any profit. Aside from the immediate tax revenue, simply moving corporations would increase the nation’s wealth by more than $1 trillion. Wouldn’t it be worth coveting anywhere?”

Although the Korean government suddenly drew its sword, other advanced countries were also at war with tax havens from a long time ago.

In the case of manufacturing, a permanent establishment is established in each country and taxes are paid in that region. However, data and services cross borders freely.

Even if the service is sold in Korea, the tax on the profits is paid to the server or other region where the corporation is located. Of course, the area is primarily a tax haven with low tax rates.

In response, countries are devising measures to come up with a way to collect taxes.

The same is true of the United States, which suffers from a headache about offshore assets.

NPL and Guble are accumulating tens of billions of dollars in foreign corporations in tax havens such as Ireland.

When this money is brought into the United States, it is left there because there are huge taxes.

President Ronald wielded a whip to encourage large corporations to bring foreign cash into the United States, while urging them to offer a temporary cut in remittance taxes.

I thought for a moment.

Is this really for social justice, as President Chang-min Heo said, or is it because of me, as Secretary Shin Jong-hoon said?

I remembered the time I met President Huh Chang-min. There was a strong conviction in his expression and actions. If Park Si-hyung only acted for his own self-interest, is he acting for what he believes in justice?

I suddenly had this thought.

With the money I have, wouldn’t it be possible to set up a political party and make a president?

In a democracy, political power is elected through elections. But historically, money has always had a huge impact on elections.

Elections in the United States are like money. And at the root of it is a political donation that can be raised indefinitely called Super PAC.

Election funds are collected because it looks like they will be elected, and when election funds are collected, it leads to actual election.

In the last US presidential election with Ronald and Diane, everyone expected Diane to win. This is because, unlike Diane, who attracted a huge number of super packs, Ronald held the election without super packs.

So Ronald’s election was a huge surprise. And thanks to not receiving a superpack, he was able to dictate his own policies without being swayed by his backers.

The Coke brothers are among the people who exert the greatest influence on American politics through these political donations.

The two brothers, who run an oil giant called Koch Industries, control the Republican Party.

Without their support, it is even said that it is impossible to run for the internal party elections.

Unlike the United States, Korea does not recognize unlimited political donations. But there are many things you can do with money.

In fact, I won Ronald by investing in Rustbelt. There will be no law prohibiting you from doing the same in Korea.

* * *

The National Tax Service has launched an intensive tax investigation against 59 people who are accused of offshore tax evasion.

At the same time, the prosecution also launched an investigation.

Related chaebols stood in line at the prosecutor’s office photo line. Opposition parties and conservative media criticized it as killing the chaebol, but the National Tax Service and the prosecution did not care.

And customers came to OTK Company.

She was a middle-aged man and woman who, outwardly, looked extremely ordinary. At first glance, she looked like her husband and wife.

But the two are just coworkers.(Read more @ wuxiax.com)

“Good morning. This is Jang Ki-wook, the head of the investigation department of the National Tax Service.

“This is Investigator Lee Bo-kyung.”

Taek-gyu said in a strange way.

“I am reporting voluntarily, but you came to visit me in person. Since when did the service of the National Tax Service improve so much?”

It doesn’t matter to salaried people, but from the perspective of business people, the National Tax Service is scarier than the prosecution. The reason, of course, is the tax audit.

Once the tax audit is done properly, a well-established conglomerate may stumble.

Of course, this is also a testament to the seriousness of corporate tax evasion. In the case of Suseong Group, when the National Tax Service attacked that they would conduct an emergency tax investigation, security guards prevented them from entering, while removing the hard drive containing the accounting books and degaussing them.

In the case of former President Park Si-hyeong, he wielded tax investigations against deaf individuals and corporations as if it were a report of imputation. We, too, have experienced several tax audits. It has been quiet since Big One.

The two sat down and looked through the papers we handed out.

Jang Ki-wook, who had been closely watching for a long time, raised his head and looked at me.

“There are many things missing from the report. There are fewer documents attached.”

“Is it possible? My personal assets and income, as well as the taxes and expenses I have paid, should have been perfectly organized.”

“That part is fine. However, significant information about OTK Company is missing.”

“Voluntary reporting on details of offshore assets is only a recommendation, hasn’t it been enacted yet?”

At my words, he covered the material he was looking at.

“CEO Kang Jin-hoo. The CEO has done many things in the meantime, and I respect that as well. But the president is also a citizen of the Republic of Korea, and shouldn’t he have to abide by the laws and principles?”

The two had a unique atmosphere as a tax official. If your job is stable and your salary comes out regularly, there is no need to look out for other people.

So, regardless of whether the opponent is a chaebol or a powerful person, he can focus on his original task of collecting taxes.

I laughed bitterly.

“Laws and principles? I know you want to put a leash around the tiger’s neck, but… … .”

“Yes?”

“Go back and tell me. We will continue to voluntarily report any matters deemed necessary. But I have no intention of doing anything about it in the future.”