American tax officials

Don't give me that crap!

Hearing this, David inexplicably became angry.

Let's not even talk about how the three major corporations used foundations to provide campaign funds to members of Congress.

In the United States, estate tax is very high; if the amount exceeds $250 million, a 50% tax must be paid.

This is why many wealthy people like to "donate all their wealth" to charity. To the uninformed, it might seem like these wealthy people are very benevolent and have a strong sense of social responsibility.

In reality, these wealthy individuals' so-called "naked donations" are basically just a means to evade taxes.

According to federal tax law, donations made for charitable purposes are eligible for a 10% tax deduction.

Therefore, in order to evade taxes, these wealthy individuals would establish a charitable trust fund in their own name during their lifetime.

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

According to the legal rules for foundations, if a foundation donates $1 billion, it can receive a tax refund of $10 million.

Why donate in installments?

The key point is on individual income tax reductions and exemptions.

If you donate too much at once, you won't be able to use up the 10% personal income tax exemption, which is a waste. So you should donate in installments to maximize your benefits!

But that's not the worst part. The worst part is that once the fund is established, the U.S. government will not intervene or have the authority to take over it; it will be controlled by the wealthy individual or their children.

No one has the right to interfere with the flow of their funds, not even the IRS.

Its internal rules and regulations are confidential and will not be disclosed to the outside world; even the National Tax Administration has no right to review them.

They can legally own this wealth simply by donating 5% of their total assets to charity each year, as required by Section 3627 of the U.S. tax code.

Of course, these funds no longer belong to individual wealth, but rather to social wealth.

Therefore, the investment income of this fund will no longer be subject to personal income tax, and will be taxed at 1%.

Here's the important part: it's not 50%, it's not 10%, it's 1%!

All income generated from investments by this fund is taxed at a rate of 1%.

Other tax avoidance methods, and tax havens like the Cayman Islands and Virgin Islands, are far inferior to foundations.

When David first conceived of the prototype for the off-site tax avoidance bill, he also considered introducing a bill specifically targeting the taxation of foundations.

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

However, while the IRS finds it difficult to understand the foundation's tax avoidance methods, the fact that they can't pass legislation against it doesn't mean David has no leverage over them.

At least for now, David has found some ways to deal with this manager by using the system's review function.

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

Being hit so close to the face with such a powerful attack, Mo Ang also got a little angry.

Anyone who can establish themselves on Wall Street must have some kind of financial background.

What's more, he's currently working for three major corporations.

So although he was somewhat afraid of David, he still had some confidence.

Moreover, the rules governing foundations have been in place for so long that I've never heard of any foundation being investigated for tax issues.

Even if David has managed to get the tax avoidance law in a different location, he can't be so arrogant as to investigate the foundation before a law specifically targeting it is introduced.

"I don't mean anything by it, I just suspect that your foundation is involved in some tax issues!"

David tapped his fingers rhythmically on the table, speaking expressionlessly.

"impossible!"

"The funds in the foundation I control are mostly used for charitable purposes. How could they possibly involve tax evasion? Furthermore, U.S. federal law stipulates that your IRS has no right to investigate our affairs. I don't need to answer any of your questions!"

Moang retorted firmly, his words brimming with an uncompromising tone.

But David wasn't in a hurry. He leaned back slightly and said casually, "That's true. According to the powers granted to you by tax law, you don't need to answer any of our questions or conduct any audits. But you seem to have misunderstood something. I didn't ask you to answer any questions, nor did I intend to audit you!"

Mo Ang was dumbfounded when he heard this.

Since you don't need me to answer any questions or censor me, why did you bring me here?

What are you investigating about my foundation?

Before Mo Ang could continue thinking, David spoke up: "Listen to me carefully. According to federal tax law, neither the government nor the IRS has the right to investigate charitable foundations, and there's a condition behind that!"

"The premise is that you... well, let's not even talk about 'must,' since the money is supposed to be used for charity, but did you actually use it for charity?"

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

The same applies to foundations. The original purpose of establishing foundations was not for tax evasion, but for charity, so this is the biggest loophole!

If the IRS finds that the funds are not going to charity, but rather to someone's personal pocket, or have become campaign funds for legislators, then it has the right to intervene!

Of course, the IRS has considered this before.

However, due to the fact that the foundation's financial data is not required to be disclosed to any person or organization according to the law, they had no way of investigating it and could only give up.

However, David is different now. He possesses the ability to scrutinize, so he doesn't need to conduct any investigations into the foundation.

By simply using the system to examine some key individuals, detailed information and evidence can be obtained!

Mo Ang's expression changed slightly, but he immediately retorted, "Inspector General David, according to tax law, your IRS cannot interfere with the flow of funds for the foundation..."

"Yes, you're right. We can't interfere with the funds injected by the foundation, but we have the right to interfere with the returns generated from investing those funds!"

No sooner had David finished speaking than Mo Ang immediately retorted, "Inspector General David, you're wrong. According to Section 3627 of the tax code, it refers to all the funds in the foundation..."

"Snapped!"

Before Mo Ang could finish speaking, David pulled a tax law book from the table and slammed it on the table, startling him.

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

"this……"

Mo Ang was left speechless by the rebuttal.

David then turned to page 78 of the charter, turned it around, and shoved it in front of Moron, saying, "Look carefully, the tax law here specifies 'the amount injected by the foundation,' so it doesn't include the benefits generated by the foundation. Understand?"

Mo Ang looked closely, and then his expression became somewhat somber.

Because the foundation has never been investigated, he has always believed that no one has the right to investigate who the foundation's funds go to.

But if we really want to nitpick the wording, David does have some merit.

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 doesn't disclose any data, he doesn't believe David can do anything to his foundation!

Thinking of this, Mo Ang felt much more at ease, crossed his legs, and said, "Hmm, Inspector David, you have a point, but so what? What does it prove?"

"As far as I know, your foundation is first and foremost a 'philanthropic trust institution,' in which your clients have deposited over $500 billion in funds. These funds, through investments in industries in the United States and around the world, generate a net profit of over $10 billion per month!"

"But you can't use this money, so you've also set up a family fund for your clients. Every profit generated will be channeled through a charitable fund and transferred to the family's capital, thus perfectly becoming personal assets. Am I right?"

Mo Ang, who had been sitting with his legs crossed, looking completely nonchalant, changed his expression drastically upon hearing these words.

Since the data on his foundation's funds and profits has never been made public, how did David know about it?

To find out, Mo Ang asked, his tone slightly urgent, "Where did you get this data?"

"That's none of your business. You just need to answer yes or no!"

"No, this isn't real data!"

While the data David mentioned is indeed accurate, it is not enough to shake his bosses' foundation. At this stage, Moang only needs to deny it.

"it is good."

David seemed unsurprised and continued, "Reid, Wordsworth, Meg... these are all former government officials who, after retiring, all joined your foundation as advisors."

The foundation offered them annual salaries of $6.3 million for Reid, $4.6 million for Wordsworth, and $1.6 million for Melo…

"And of course they'll do something with that money. Every midterm election, they'll take 120 billion from the foundation to fund the election campaigns of members of parliament and provide political support, right, Mr. Moang!"

If Mo Ang only showed a slight panic after what David said earlier, then David's next words plunged Mo Ang into despair.

He couldn't understand how David could know such confidential data as the foundation's funds and profits, but also the information about the advisors the foundation hired and the funds flowing to the legislators who supported it.

If this data were to fall into the hands of the media, it would not only ruin the reputations of his bosses, but it would certainly put them in a media storm.

As the head of the foundation, how could he possibly have a good ending?

"Of course, your clients have huge funds, and the monthly hedging between charitable trust funds and family trust funds is not enough. So you have devised 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 figurehead, and no one will buy it."

"A multinational company B located abroad bought all of the company's business for US$20 billion. After a period of operation, company B sold the company to company C for US$23 billion. Company C then took company A public."

"Finally, your foundation will buy all of Company A's shares. After a few years of operation, Company A will face bankruptcy and collapse, and then you will make billions in profit with an empty shell company."

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

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

David ignored what Moang was thinking and revealed the top-secret information he had obtained.

"You...you...I don't admit to these accusations!"

At this point, Mo Ang could say nothing but stubbornly retort, his forehead covered in sweat.

But David wasn't going to let him off the hook any longer. He looked at him sharply and said, "Should I bring all of your hedge fund managers in for questioning? Do you think they'll be as patient as you are?"

Mo Ang gritted his teeth and said, "What exactly do you want? Do you know what kind of people my clients are?!"

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

"you……"

Now, even if Mo Ang were stupid, he would know that David wasn't targeting the foundation at all; he was clearly using the momentum of the off-site tax avoidance bill to further attack the three major corporations.

"Mr. Moang, if you cooperate with me obediently, I guarantee you'll be fine. Otherwise, you'll definitely be the scapegoat they push out in the end!"

If this matter comes to light, regardless of whether the owners behind the foundation will suffer, Moang, as the person in charge of the foundation, will definitely be condemned by the public for illegally diverting these 'charitable funds' into his private pocket and channeling them into the midterm elections.

They will not escape legal punishment!

"What do you want?"

Moang wasn't stupid; he understood perfectly well that, although everyone knew that foundations were established by wealthy people to avoid taxes.

But knowing is one thing, but if you actually reveal it publicly, that's a different story.

"It's very simple. I need your foundation's contact information and that of your clients, as well as more detailed data on the flow of every fund, to ensure that this matter is inextricably linked to your clients!"

"No, they'll kill me!"

"I told you, I'll protect you, but if you insist on standing up for them, you'll be the first to suffer. Think about your son; he's only two years old. Do you want him to spend his whole life visiting you in prison?"

Upon hearing David's words, Mo Ang's face immediately filled with resentment. He said angrily, "Inspector General David, I admit you're currently enjoying unparalleled influence in America, but my clients aren't pushovers either. What makes you so confident that you can guarantee my safety?" (End of Chapter)