American tax officials

Chapter 343 Silicon Valley Shake-Up (2)

"Okay, I'll be right there."

David immediately stood up, pushed open the door, and went out.

In the conference room, the expressions of the mid-level executives from Silicon Valley companies who saw David walk in instantly tensed up.

Everyone present knew very well that David had summoned them not for a simple chat over tea, but most likely to use them as pawns to make an example of Gu Ge, Wei Ruan, and the other big shots.

"Everyone, don't be so tense, just relax."

After David sat down and offered a word of comfort, he continued, "I believe everyone here is aware that the IRS announced a tax audit operation codenamed 'Storm' a few days ago. What are your thoughts on this?"

The people 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 had been called out, the man named Christian had no choice but to bite the bullet and reply, "Since the IRS has decided to launch this tax investigation and the White House has expressed its support, then both I and Cisco naturally support it."

"Alright, Mr. Christian, I appreciate your frankness, but support isn't just about words; it requires concrete actions. What do you think?"

"That's natural. When I got back, I had the finance and tax departments mobilize to thoroughly investigate whether our company had any tax issues."

Knowing how capable David was, he was also clever enough not to directly deny that his company had no tax problems.

"No need for that. Let me just remind you directly. Back in 2015, our IRS introduced a 'technology transfer tax credit' policy for Silicon Valley. The original intention of this policy was to encourage established companies like yours to share their technology with startups to help them grow. Cisco, by taking advantage of this tax credit policy, avoided more than $20 billion in the past seven years. Am I right?"

Upon hearing David's words, Christian's expression changed instantly, and if someone looked closely at his lips, they could even see that they were trembling slightly.

In fact, not only him, but many others present also became uneasy.

When the IRS introduced this policy to Silicon Valley, the initial intention was indeed, as David said, to help them grow small and early-stage businesses.

However, while these companies are very interested in this tax incentive, the core of each company is its technology. Sharing that technology with small startups would greatly reduce their value.

Moreover, there is a risk that the apprentice will starve the master.

However, they later found a solution that satisfied both sides.

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

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

Even today, while it's impossible to say that 100% of companies in Silicon Valley are exploiting this tax loophole, at least 50% are.

The reason why Christian and many others who were summoned were nervous was that since David had pointed it out, it meant that he knew about the trickery involved. If they were to investigate this further, they would not only be charged with tax evasion, but they might also be charged with fraudulently obtaining tax benefits.

They are all listed companies. Once they are accused of these crimes, they will inevitably suffer greatly, just like Amazon, even if they don't die.

"Mr. Christian, is it possible that Cisco did not participate in this tax policy?"

Although David appeared to be questioning, he had already confirmed through the scrutiny function of his Golden Finger that Cisco was absolutely involved in this policy.

"No, no, no, our company did participate in this policy, but I need to go back and ask my department head for details. How about this, give me two days, and Cisco will give you, Inspector General David, an explanation. What do you say?"

Whether or not someone participated in this policy can be easily determined with a simple check, and since David pointed it out in front of him, it meant that it had definitely been checked. So how could Christian dare to lie through his teeth?

"Alright, I'll give you two days. I hope you'll figure this out!"

David turned his gaze to the other man on his left and asked, "So, Mr. Chenko, what are your thoughts on our tax audit?"

"Of course, my company, Aolian, also supports it. After all, without the IRS, our country would be in chaos."

The man named Qin Ke also offered a compliment.

However, David wasn't going to let him off the hook just because of the flattery, and continued, "In that case, shouldn't your Olympic Federation do something in return?"

"express……"

Chenko hesitated.

"Alright, let me remind you then. Back in 2016, the IRS introduced a tax incentive program called 'Technological Innovation,' remember?"

As soon as he finished speaking, Qin Ke's expression tightened.

Tax incentives for technological innovation, as the name suggests, are a policy introduced by the IRS to encourage companies in Silicon Valley to continuously innovate in technology.

The original intention of this policy was very good; it was to encourage these technology companies in Silicon Valley to improve their technology in line with the times.

However, technology will always encounter barriers and there will always be times when innovation fails.

What if these companies are unable to create new technologies and are unwilling to give up the tax credit?

Soon, some companies in Silicon Valley came up with a clever way to steal chickens.

For example, if they innovate a new technology called "12345", after enjoying a round of tax incentives for technological innovation, they can reorganize this technology into various combinations such as "54321", "12354", and "53124".

Since the IRS is in charge of taxation and technology isn't their strong suit, coupled with the use of some underhanded tactics, this tax incentive policy naturally fell into their hands.

The reason why Chenko was so nervous was that over the years, their Aulian Company had indeed evaded a lot of taxes by using the policy of stealing chickens.

"Our Olympic Federation has indeed received a lot of tax benefits because of this policy, but that's because we have a lot of technological innovations, and it's what we deserve, Inspector General David."

After a struggle with his thoughts, Chenko gritted his teeth and said those words.

Ultimately, he was still reluctant to give up the tax benefits this policy brought to his company, and if he admitted that his company had indeed been cheating the policy all along, then his company might no longer 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 solid evidence yet.

"Hehe, Mr. Qin Ke, it's true that I'm not familiar with your technology, but that doesn't mean there aren't other people in America who understand it. Well then, since you say that your United States has enjoyed this policy for so many years because of your superior technology, then we in the IRS also have a few friends in the Academy of Engineering who understand this technology. I'll have someone come over right now to study and analyze it. Your United States will cooperate, right?"

"this……"

Qin Ke's face instantly turned a deep purplish-red.

You should know that the National Academy of Engineering is the highest-level institution in the American technology industry. If you were to invite the top experts from there, they would probably be able to see through the so-called technology of the United States Federation at a glance.

"What's wrong? Perhaps you lack confidence in your company's technology, or perhaps your so-called technological innovation doesn't meet our policy standards?"

"Alright, Chief Inspector David, I take back what I just said. When I get back, I will have someone thoroughly check our company's tax situation and give you an explanation in two days."

Having said all that, Chenko knew that continuing to argue would only lead to bad consequences, so he had no choice but to compromise.

"You better investigate this thoroughly. I'll hold you accountable for even the smallest oversight. Do you understand?"

"clear……"

Seeing David's fierce expression, Chenko felt a pang of regret. He regretted arguing and now that he had offended David, he didn't know if he would be in big trouble next.

In the following time, David asked questions to the other people present one by one.

With the example of Chenko before them, naturally no one dared to provoke David again. They all said they would go back and carefully check their company's tax situation and give an explanation in two days.

……

The main entrance of the Bay Area Police Station.

It has been more than an hour since the heads of various companies arrived, but they have still not appeared, which has naturally aroused various speculations among reporters on the scene and netizens online.

"They're out! They're out!"

Just then, a sharp-eyed reporter's shout drew everyone's attention. Looking up, they saw the heads of various companies who had entered earlier coming out one after another.

"Judging from their expressions... they seem a bit subdued..."

"It's more than just silent. Look at the blond man on the right. He's the CEO of a Silicon Valley company called Aulian. Look closely at his expression; he looks like he's about to cry. He must have gotten a severe scolding from Inspector David inside!"

"The fact that these mid-level managers all looked so sullen suggests that their respective companies have likely run into tax problems, and the IRS has caught them red-handed..."

"..."

Based on the expressions these people displayed, netizens have offered various analyses.

In the conference room of the GOO headquarters building.

The representatives from various companies who were invited by Ryan were still there, but their expressions were no better than anyone else's.

They had already figured it out from the live media coverage: those mid-level companies that were reported there were probably caught red-handed by the IRS.

Otherwise, they wouldn't have come out looking as pale as if their mothers had died.

"Riana, please contact Chenko, Kristan... and see if they can come over."

Ryan gave an instruction to his assistant. Although he had already guessed what was going on from the expressions of the people on TV, he still wanted to hear it from them in person to see what had actually happened.

Soon, the assistant named Ryana returned and said, "Mr. Ryan, Mr. Chenko and the others said they have an emergency to deal with and can't come right away, but Mr. Christian said he can come over. It should only take 15 minutes to get there."

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

Fifteen minutes passed quickly.

The conference room door opened, and Christian, who had just returned from the Bay Area branch, walked in. After looking around at everyone present, he said, "The giants of Silicon Valley are all gathered here; this is quite a rare sight..."

"Sit down, Christian. I'm sure you've guessed why we summoned you. What we want to know is, what happened after he summoned you?"

"What else could happen? David from the IRS is asking us to cooperate with their storm tax audit operation."

Christian sat down, but looking at the worried and anxious giants in front of him, he felt much more relaxed.

He's like a convicted criminal now, and his mind is definitely reeling.

But these people in front of them certainly won't surrender as easily as they did, and the outcome they will face is naturally hard to predict.

"So, you're saying you've agreed to cooperate?"

Ryan asked with a hint of nervousness, while the others held their breath and listened intently.

Don't underestimate these mid-level companies just because they seem insignificant to these giants. However, if these mid-level companies were to collectively surrender, the pressure on these giants would be immense.

"Unlike you giants, we small companies don't have such powerful backing. To survive, we have no choice but to cut our losses..."

"Damn it! We're all Silicon Valley companies; our fates are intertwined. How could you do this?!"

Before Christian could finish speaking, a representative from Wei Ruan interrupted him angrily.

Christian glared at him with displeasure and retorted, "Mr. Schlanz, do you think Cisco wants to do this? We have no choice!"

"So, he's got leverage over Cisco?"

This time, the question was directed to Ryan.

"In fact, not only Cisco, but the tax situations of all the companies we've been summoned to have probably already been thoroughly investigated by David!"

"What?!"

Although everyone was already mentally prepared, they still couldn't help but gasp when they heard that David had actually found dirt on all these companies.

(End of this chapter)