Reborn Action Star: Starting in Hollywood

Chapter 621: IRS in Trouble
"He's been caught and is on his way back for interrogation," Betty said on the phone.

"The tax authorities are so efficient!" Lin Yuan exclaimed.

By the time he went to meet Old Tommy and confirmed that Andy Louis was the mysterious visitor, the tax authorities had already rushed to the location and took action immediately.

"Is this really legal?" Lin Yuan asked, "Will it cause any unnecessary trouble?"

"Lin Yuan, you have been in North America for so many years. Haven't you heard that in this land, the only things that cannot be avoided are death and taxes?" Betty said.

Lin Yuan: (1`1;)
Well, that's true.

The Internal Revenue Service (IRS) is indeed more frightening than the Special Services and the FBI.

96% of people arrested and prosecuted by the IRS are eventually convicted, an incredibly high success rate.

What's even more outrageous is that according to the IRS's 2005 fiscal year report, a total of $834 billion was collected that year, of which less than 523% was in taxes, and the remaining $ billion was in fines.

In other words:

You can’t escape paying a penny of the taxes you owe, and I’m not only going to recover the taxes, I’m also going to pay a fine.

The average fine is 1.5 times the amount of tax owed.

That is, if you owe $100 in taxes, the IRS can ultimately collect $250 from you.

Even the devil would be defeated by the force of peeling skin and pulling tendons like this.

The reason why the IRS can do this is that it can monitor anyone based on subjective suspicion and access account information and daily consumption records at will.

Once a person's expenses are found to be inconsistent with their reported income, they are brought back for conversation.

While law enforcement agencies are generally required to administer Miranda warnings when arresting someone, the IRS is not required to do so because it argues that the investigation is an administrative matter and not an arrest.

Miranda warnings are known to many Chinese people. In American judicial practice, law enforcement agencies must declare three sentences to suspects:
(1) You have the right to remain silent. If you do not remain silent, everything you say can be used as evidence against you in court.

(2) You have the right to appoint a lawyer before being questioned by the police, and he or she can accompany you throughout the interrogation process.

(3) If you cannot afford a lawyer, we can hire one for you.

After saying these three sentences, there is one final question: "Do you fully understand your rights mentioned above?"

Even if you rarely watch TV shows or movies that reflect American judicial procedures, you must have seen Miranda warning scenes many times when watching Hong Kong dramas.

This procedure is an important part of the so-called "procedural justice in the American judicial system."

If the Miranda warning is not given before the investigation begins, all evidence obtained in the subsequent investigation will be excluded due to procedural irregularities.

In general, Americans are very good at using these fancy methods that seem to "protect your rights" and package their judicial processes in a very high-end way.

But the starting point of this system is actually to presuppose that the judicial organs are bad guys and the criminal suspects are good people who have been wronged. Therefore, you have the right to remain silent. If procedural justice is violated, even if the result is fair, the evidence must be resolutely rejected.

This happened in the United States. A perverted serial killer brutally killed many people, including children.

After his arrest, the police found the hidden body of the victim based on his testimony.

But because the police did not follow the rules to announce the Miranda warning, all the evidence was excluded!

Even if the victim's body was found based on the suspect's statement, such irrefutable evidence was excluded due to procedural irregularities, ultimately leading to the suspect going unpunished.

This is simply an excessive pursuit of procedural justice, which seems a bit crazy.

If this kind of thing happened in the country, no one would be able to accept the outcome.

While the Miranda warning can ensure a fair judicial process to a certain extent, this is only one advantage.

However, the absolute exclusion of evidence and excessive protection of suspects significantly increase the difficulty and cost of solving cases, which clearly does more harm than good.

in the country, criminal suspects have no right to remain silent, and citizens have the obligation to cooperate with the investigation of judicial authorities.

If you really have not committed a crime, the judicial authorities will do their best to clear your name.

In fact, Americans are not unaware of the drawbacks of Miranda warnings, so when it comes to tax collection, which is related to the "national foundation", the IRS is extremely strong.

We don't give you the right to remain silent. Just tell the truth, otherwise you may be severely punished.

After all, things like cameras breaking down and suspects dying unexpectedly are not very common.

Don’t think the IRS won’t do this. In fact, they have done much worse things.

Two of these examples would be unimaginable if they were to happen in China.

The first example is that the IRS once issued an announcement requiring taxpayers to declare illegal income, such as smuggling income. This move caused an uproar in the United States, and many people believed that the IRS was encouraging crime.

As long as taxes are paid, illegal income becomes legal in disguise?

Knowing that there is a large amount of illegal income to be paid for taxation, the IRS does not allow other judicial authorities to investigate, but instead conceals the matter for those "taxpayers."

If this isn’t money laundering, what is?
In the second example, an American fell victim to a telephone scam and withdrew $65 from his retirement account and transferred it to the scammer.

Before the police arrived, the IRS came to the door and asked the victim to pay $10 in taxes and fines.

Because withdrawing funds from a pension account in one lump sum is considered income, and the criminals' act of transferring funds is suspected of concealing income, a fine is required.

For the elderly who have lost their life savings, this is undoubtedly adding insult to injury.

And this is not an isolated case. In 2004 alone, the IRS collected approximately $5.3 million in taxes and fines from fraud victims.

This money has caused countless people who were already on the brink of the abyss to slide completely into the abyss from which there is no escape.

It can be said that the IRS is really too powerful. It is a sharp knife in every aspect. Betty used this sharp blade today and it really drew blood.

But when he thought about how powerful the IRS was, Lin Yuan couldn't help but feel a little worried.

In today's incident, the IRS is an ally, but there is no guarantee that one day in the future, the IRS will also become a sharp knife of the opponent and stab itself fiercely.

After all, when it comes to tax evasion, Lin Yuan has done it before.

He has a professional tax agency to help him legally avoid taxes, so there is no problem from a legal perspective.

This is a common practice among the wealthy, but there is no guarantee that it will be used as a handle to attack someone one day.

"Betty, will the IRS take action against me one day?" Lin Yuan expressed his concerns.

"Not if you sit at the table forever," Betty gave her answer.

She said it very tactfully, but Lin Yuan heard the subtext.

If you always sit at the poker table, it won't happen, but if you leave the table, it is entirely possible.

Maybe this is part of the top-level system design.

Unreasonably high tax rates force everyone to find ways to avoid taxes. Even if you avoid taxes legally, there will still be some leverage.

When you have authority, then it's not a problem.

But if you dare to leave the power field, you may be liquidated immediately, and you will have to spit out all the benefits you have gained before.

Lin Yuan recalled the reminder Mr. Eisen had given him when he first took the first step in his capital journey:
If you only have pure monetary assets, you are like a fat pig waiting to be slaughtered, and everyone will want to rush over to share your food.

For a top-tier wealthy person, it doesn't matter how much money he has.

It is important to know how much social resources can be mobilized and how many people's lives can be affected.

We must tie the interests of more people together, control the means of production, and transform wealth into social influence, so that we can go far.

He has been practicing this in recent years. The interest groups he has bound have long since surpassed North America and even Europe and East Asia, and have entered India and Africa, which can be said to be blossoming in all aspects.

"Lin Yuan, do you think I'm putting too much of a burden on you? Maybe we shouldn't carry out equity reform?" Betty's voice came from the phone.

The equity reform of Linyuan Pictures has begun under Betty's control.

Soon all equity will be changed into preferred stock and common stock.

This means that Lin Yuan can raise funds to a greater extent without worrying about losing control, but it also means that he is on a rope and must pull the Lin Yuan Pictures cart forward with all his might to bring benefits to more people.

"You worked so hard during the filming of 'King of Spy 2'. Was it because you felt tremendous pressure?" Betty asked.

Every one of Lin Yuan’s previous films was thrilling and exciting, but "King of Spy Wars 2" was clearly a leap forward that took him to several higher levels.

Whether it is the giant fire tornado in the Canadian wildfires, the ice and snow cliffs and avalanches of the Yarra Snow Mountain, or even the underwater scenes of nuclear submarines currently being filmed, these are operations that other action films dare not even think about.

If this movie can be made, the sensation it will cause will definitely be unprecedented, and it is hard to imagine how high the box office and influence will reach.

But it must be said that Lin Yuan experienced life-threatening situations several times during the filming of "The King of Spy 2", more than in any previous movie.

In Betty's eyes, Lin Yuan was facing tremendous pressure and had to fight hard, which made her feel distressed.

Although Betty couldn't see his movements, Lin Yuan still shook his head and said, "I chose this path. But I chose to fight hard, not because of the pressure from Lin Yuan Pictures."

"Then why do you still work so hard?" Betty asked.

"There are approximately 64 billion people in the world. From ancient times to the present, approximately 1060 billion people have lived on this planet, but only a few have left their names.

There are only a handful of people who are still frequently mentioned and praised hundreds of years after their death.

I have already made enough money, but I still have a long way to go before I can become a person who goes down in history.

I am fighting for my ideal, so this is my path," said Lin Yuan.

Life is at most just over a hundred years, which, in the vast ocean of history, is not even a drop of water splashed on a wave.

For most people, death is the end of everything, and within a few years, no trace of them can be found in this world. If you can truly carve your name into history, or even take a few more steps, so that thousands of years later, people will not only remember you but also love you, that would be the highest achievement in life.

Lin Yuan knew that he was just an ordinary person in his previous life, and he would not have such a delusion if he did not have such an opportunity.

But in this life, he has such a good opportunity. If he doesn't try his best, but instead indulges in material enjoyment and wastes his life, then he is really hopeless.

The performance of Linyuan Pictures is certainly important, but for him, it is just a by-product of the pursuit of excellence.

"Lord of Spy Wars 2" must be a new peak for him, but it is definitely not the highest peak.

Lin Yuan is always on the road throughout his life. He wants to know what heights he can reach in the end by running so hard throughout his life.

Hearing Lin Yuan's frank confession, Betty said, "To be honest, I really envy you. The path I've chosen is destined to never lead me to the same heights as you."

As a chaebol heiress from a political family, Betty could become as wealthy as a country.

But are there few people in human history who are as rich as a country?
There will always be super-rich people in this world, but it is extremely difficult to be remembered by history and leave a good reputation.

"Then you can expect me to climb higher and higher, so that when people in the future know my story, they will also know you." Lin Yuan said with a smile.

Betty: “…”

That makes sense, but for some reason I really want to beat you up.

"You're right! I was worried that you've been under too much pressure recently, but now it seems that it's not enough. After all, I also want to leave my name in history, so I can only spur you on. Stop talking on the phone and get ready to work." Betty chose to enter the spurring phase.

Lin Yuan smiled and said, "It's time to get to work. Send me the IRS office location and I'll rush over right away."

Because of the change in route N-13, the Virginia will need tomorrow to determine the new route and set sail again.

Lin Yuan has plenty of time to participate in the IRS interrogation tonight.

Well, time to meet that Andy Lewis.

Their last name is Louis. Lieutenant Commander George Louis of the Virginia is a decent and good man.

Andy Lewis is a standard villain.

As expected, a man named George is more decent than Andy.

Betty didn't know what Lin Yuan was complaining about. She just said:
"The trial will not be held at the IRS Washington branch, but at..."

……

……

Outside a warehouse filled with hay on a small farm outside Washington.

The director of the IRS Washington branch, Taff Green, was scolding his subordinates: "Aren't you the elite of the elite? It's been over an hour, and you haven't found any valuable clues yet? If we keep dragging it out, the pressure on us will only grow!"

"Boss, we didn't expect Andy Lewis to be so impenetrable and unable to find any evidence against him.

Damn it, it seems he spent all those years at Deloitte figuring out how to evade taxes without leaving a trace," said a tax investigation officer in a white shirt.

"Boss, you know I'm a senior expert in the field of foreign tax credits. I've experienced at least 200 cases over the years. Who has ever escaped my eyes? But it's strange today. I can't find any clues about his tax evasion." Another investigator in a black suit also said.

In North America, the main ways for wealthy people to avoid taxes are trusts and charitable donations.

In addition, there is the use of tax havens to avoid taxes, but this behavior is too attractive, so there is another common way: foreign tax credits.

The so-called foreign tax credit means that for individuals with overseas income in the United States, they can apply for a foreign tax credit (FTC) to offset the taxes paid in foreign countries against the taxes payable in the United States, thereby avoiding double taxation.

Once this situation involves foreign taxation, there is considerable room for maneuver, and it is also a tax avoidance method favored by many wealthy people.

After all, how do you know whether I have paid so much tax in full abroad?

Especially in some countries with looser regulations, countless tricks can be used.

But wherever you go, you leave traces.

If you take the trouble to investigate, there is a high probability that you will find clues.

But the problem is that for Taft Greene, director of the IRS's Washington office, there's not much time to take it slow.

Today, they brought Andy Lewis, who resisted arrest, not to investigate his case. Taff Green was clear about his purpose: to complete the task assigned to him by Betty.

Let Andy Louis confess his conspiracy with Major General Ross and produce the necessary physical evidence.

In this way, Betty could use the evidence to completely defeat Major General Ross, and then follow the clues to find out his backers and completely hurt the Rockefeller Foundation.

But the problem is that Andy Louis will not cooperate easily, and it is not the IRS's turn to take charge of this matter.

Therefore, Director Taft Green's plan is to dig out evidence of Andy Lewis's tax evasion through tax audits.

Based on Andy Louis' income level and the difference between the amount of taxes he paid, once the evidence of his guilt is confirmed, the sentence will be at least ten years, and it would not be surprising if it exceeds fifteen years.

By this time, he had obtained the bargaining chip to negotiate with Andy Louis.

Either stand up and help identify Major General Ross, or go to jail for more than ten years.

Between two evils, choose the lesser one. Director Taff Green believes that Andy Lewis will make a wise choice.

But the problem now is that they can't pry Andy Louis' mouth open at all.

After being resisted from arrest, this guy did not panic at all. He cooperated very well with the investigators' questions and answered every question carefully.

Under normal circumstances, detailed questioning will always reveal some loopholes, and then investigators can pursue the case based on these loopholes and thoroughly dig out the evidence behind the crime.

But after answering so many tricky questions, Andy Lewis remained flawless.

This is quite outrageous!
With this anti-reconnaissance awareness and tax evasion ability, how can one be a corporate executive?
Working as an executive in a tax company is the right career for you, right?
But it seems Andy Lewis's job at the RAND Corporation isn't to produce think tank reports on geopolitical games or military assessments, but to help those who benefit from the revolving door between politics and business evade taxes...

Okay, the problem is found, no wonder this guy is so professional.

Director Taf Green gave a thumbs up to such professional talents in his heart, as only colleagues in the same field know the value of their peers.

Being able to withstand the bombardment of his own men, especially the attack under such unequal conditions, is definitely a talent among talents.

But Director Taf Green couldn't be happy at this moment because he didn't have much time left.

Andy Lewis is not an ordinary person. He is the vice president of the RAND Corporation, which has close ties with the government and has the support of the Rockefeller Foundation.

Although the IRS is the most powerful violent department in North America, it is known as the "living devil of North America."

But this does not mean that the IRS is absolutely invincible, not to mention that the IRS is not a monolithic entity.

That's why Director Taft Green did not interrogate Andy Lewis in the Washington branch's office building.

If he brought Andy Lewis into the police station building, someone would immediately inform the Rand Corporation and the Rockefeller Foundation, and pressure calls would come in soon.

At that time, he will be in a dilemma.

Taking Andy Louis to this small farm in the suburbs for interrogation can delay his discovery as much as possible.

But Director Taft Green knew that even if he delayed, it wouldn't last long.

Once it is discovered that Andy Lewis is missing, the connections behind him will immediately start to work, and they will not have much time left.

Director Taft Green didn't know that his dilemma at the moment was seen by Andy Louis.

As a consultant at Deloitte, he specializes in foreign tax credits for corporate executives.

It was precisely because of this outstanding business ability that he was valued by Rand Corporation and poached with excellent treatment.

In the years since joining Rand Corporation, he has taken over the tax avoidance business of a large number of political and business tycoons.

Therefore, it is impossible for the IRS to catch itself in the short term.

As for how long?
Andy Lewis raised the corners of his mouth and smiled.

Time is on my side, and they absolutely cannot afford to waste time with me.

Whether it was the Rand Corporation and the Rockefeller Foundation behind him, or even the bigwigs who had evaded taxes through his operations over the years, if they heard that he was resisted from arrest, they would definitely be more anxious than himself.

He was afraid that he would fall into the water and implicate them.

Therefore, a large number of forces will work together to put pressure on the IRS.

Even Director Taft Green would not be able to withstand this pressure.

In fact, Andy Louis had already seen Director Taft Green's guilty conscience since he did not dare to hold the interrogation in the Washington branch.

For Andy Lewis, the best option is to consume.

He wins when he is discovered to be missing and his backers put pressure on him to rescue him.

Just when Andy Lewis was confident of victory, he suddenly heard an investigator say, "Director, Mr. Lin Yuan is here."

Lin Yuan?

What is he doing here?

Andy Lewis was confused.

Could it be that Lin Yuan came here to beat him up to vent his anger?

It's impossible that he really came to participate in the interrogation!
(End of this chapter)