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Chapter 141 - Chapter 139 Tax

The next day.

After a night's rest, Kyle came to Gale Capital again and, with the help of a professional accounting team, took stock of the recent gains more accurately.

Phase 1:

From early July to mid-August, Gale Capital focused on Southeast Asian markets such as Thailand, Hong Kong, Indonesia, Singapore, and the Philippines, earning a total of US$260 million over 45 days.

Phase 2:

Without Kyle's intervention, the Gale Capital team headed by Henry started operations with $20 million and made another $19.8 million in profits in the Southeast Asian markets before mid-October.

Phase 3:

Starting from October 15, he followed a group of national speculators to short the Japanese yen. In less than a month, he crashed the Japanese yen foreign exchange market, stock market, and futures market, and made a profit of $500 million in one fell swoop.

Phase 4:

In mid-November, it began to conquer the Korean market and within just over ten days, it earned another $700 million.

That is to say, from the outbreak of the Asian financial crisis in early July to early December, Gale Capital had accumulated a total profit of US$1.48 billion!

This amount of profit is undoubtedly huge. Looking at the ranks of international speculators, Gale Capital's gains are enough to rank in the top 50!

That's right, just the first 50!

It is true that Kyle is a time traveller and has the advantage of foresight about the financial crisis, but the amount of funds owned by Gale Capital is completely incomparable to the Quantum Fund and the Big Five investment banks that can easily mobilise billions or tens of billions of dollars.

"Without input, how can there be output?"

If the amount of funds you mobilise is far less than that of others, the returns will naturally be much lower.

Moreover, where do Quantum Fund and the Big Five investment banks even exist?

They have the most complete information channels in the world and countless senior financial talents serving them, not to mention they have a strong political background.

Who is behind the five major investment banks and Quantum Fund?

Behind them is the Federal Reserve, which owns the world's largest gold reserves and is the maker of the world's financial order.

It's like a football match: the organiser is the Federal Reserve, the referee is the International Monetary Fund, the five major Wall Street investment banks are the top teams like Barcelona, Real Madrid, Inter Milan, and Bayern Munich, and the Southeast Asian nations are like the youth teams of Asian countries. If you're not as strong as the others, and both the organiser and the referee are on the other side, how can you play?

Therefore, before the outbreak of the financial crisis, many Asian countries were destined to have their wealth plundered by Western countries.

"The European silver crisis of the 1970s, the Middle East oil crisis of the 1980s, the Plaza Accord between the US and Japan in the early 1980s, the Chilean financial crisis of 1992, the Mexican financial collapse of 1994, the Asian financial crisis of 1997, the global subprime mortgage crisis of 2008, the collapse of the euro 2012, and the global foreign trade revenue increase agreement 2017..."

Financial crises like this are everywhere.

On the surface, it is the major investment banks and international speculators on Wall Street who are frantically plundering the wealth of various countries. But if you think about it more deeply, it is the Western powers that are squeezing the blood and marrow of many countries!

There's nothing I can do!

They even set the rules of the financial game. How can you challenge them?

"How wonderful!"

Kyle looked at the financial statements in his hand, feeling quite happy. "The total profit is $1.48 billion. After deducting the dividends and bonuses that Henry and the traders should receive, I still have $1.45 billion. It's really great."

However, on second thought, Kyle became angry again.

This huge amount of money is currently in overseas accounts, but once the funds return to the United States, a considerable amount of taxes will have to be paid.

35%!

That's right, according to the relevant provisions of the "Foreign Tax Act" that came into effect in 1995, the profits of overseas companies owned by American citizens do not need to be taxed, but once the funds are transferred back to the United States, they will face taxation. This is "double taxation," and it is 35%!

In other words, if Kyle transfers all $1.45 billion back to the United States, he will have to pay $500 million in taxes.

"It's so damn dark!"

Facing the powerful tax department of the United States, it is wishful thinking if you want to escape.

"Should this money be returned to the United States?"

For a moment, Kyle began to think deeply.

If Kyle plans to work in the financial industry for a long time, he must learn from the major investment banks on Wall Street. This money must not be transferred back to the United States easily.

But!

But compared with the gains in overseas financial markets in the next few years, Kyle is more coveting the Internet in the United States in the late 1990s.

You must know that in the next few years, or even in 2020, the Internet's profit ratio will still be far higher than that of traditional industries. Even the highly profitable financial industry cannot be compared with it.

In fact, Kyle personally prefers to transfer the funds back to the United States. Even if it means paying high taxes, it is completely feasible. After all, the rising profits and market value of the Internet are really enviable.

"It has been decided to transfer the funds back to the United States, but certainly not all of them."

"As for how much funding to transfer back, I still need to consider it."

Kyle thought about it and couldn't help laughing.

In fact, 1997 was a relatively lucky year!

After 2003, the IRS further strengthened the Bank Secrecy Act by adding a reporting requirement for American citizens and businesses holding overseas accounts. This means that even if your funds are in an overseas bank and you don't make any profit in a year, you still have to pay taxes according to the law.

Well, the kind that's enforced.

According to a set of data released by the U.S. Internal Revenue Service in 2010, tax evasion using overseas accounts causes the United States to lose approximately $150 billion in tax revenue each year, of which $40 billion to $70 billion is due to personal tax evasion and $60 billion to $80 billion is due to corporate tax evasion.

However...

"You have a plan, but I have a ladder."

"In the future, American internet giants like Microsoft, Amazon, and Google will take tax payment and tax avoidance to new heights. They generate tens of billions of dollars in profits each year, yet pay only tens of millions of dollars in taxes. Some, like Amazon, even report losses on their books every year."

It has to be said that Kyle really admires the shamelessness of these big companies.

When Kyle decided to transfer part of the funds back to the United States, he also began to look for some professional financial companies and legal teams to design tax avoidance plans to pay as little tax as possible.

...

It took a few days.

Professional financial companies and legal teams have provided a series of tax avoidance solutions.

"Mr. Page, we can currently ensure that your tax payable of 35% will be reduced to 25% to 30%. However, to determine the specific amount, we still need to conduct further simulation statistics with our legal team based on the relevant tax laws of each state," said the representative of the financial company.

Kyle nodded.

Tax evasion is not something that can be accomplished in a day or two, and Kyle has already prepared himself mentally.

If he didn't evade taxes, Kyle would have to pay a large amount of taxes. As he has always been stingy, he would definitely be heartbroken.

"Once the money is in place, I will have to further adjust the industrial structure under my name."

Kyle had already started planning this.

A media empire needs more than just movies, television, music, animation, and peripheral chain stores. It also needs traditional paper media, games, sports, books, and other industries to further optimise the industrial structure and enhance the ability to resist risks in crises.

"Although Harry Potter is an excellent book series, its global influence is definitely due to its publicity, which plays an indispensable role, even an absolute role."

"Books... In this area, perhaps I should acquire a publishing house with some influence, or invest in Random House."

"Well, there's also Apple. It's been almost a year since Steve Jobs returned to Apple, so it's time to start planning for its shares."

For a moment, Kyle thought a lot.

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