Reborn Capital Empire

Chapter 55: Legal Tax Avoidance

Chapter 55 Legal Tax Avoidance

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After signing a three-day exclusivity agreement with Merrill Lynch, Guo Shouyun left the Pan American Building. After lunch at a random Chinese restaurant, and was about to go back to the hotel to take a nap, the phone rang.

“Boss, the Mr. Justin Lin you specified to look for has arrived!” Buddy Morris said on the phone.

“where?”

Guo Shouyun was shocked.

“In the company reception room!”

“Got it, I’ll be there soon!”

Quickly turning the steering wheel, Guo Shouyun drove to the office of Matrix Pictures in Santa Monica. After entering the reception room, his eyes instantly noticed the chubby young man with round face and short hair standing beside Buddy Morris.

There are three most famous Chinese directors in Hollywood in later generations: Wen Ziren, Justin Lin and Ang Lee! The three have their own strengths. Wen Ziren is a master of horror films, and almost every film can bring huge benefits to the producer; Justin Lin used three films to transform the original medium-cost “Speed and Speed”. Passion” became a super commercial blockbuster comparable to the “Harry Potter” and “Pirates of the Caribbean” series.

Ang Lee is more good at literary films. “Brokeback Mountain” and “Fantasy Drifting of Young Pi” are both classics, but they have repeatedly failed in commercial blockbusters.

These three are representatives of Chinese directors. Since Guo Shouyun wants to enter Hollywood, he must draw them into his own camp, whether it is out of interest, or because of blood and skin color.

Compared with Wen Ziren, Justin Lin has already made a small-budget film “A Sea of People and Wonderful Flowers”. He is usually an assistant director in some small crews, or filming some documentaries with friends. Although he has not achieved much success, But it does have some shooting experience.

But when I heard that there was a big production with an investment of 40 million US dollars looking for me to be the director, my heart was still full of shock and disbelief.

For his own future, after hesitating for a few days and confirming that Matrix Pictures is not a liar, he came to the door with excitement and anxiety.

“Hello, Mr. Justin Lin. I’m Guo Shouyun, chairman of Matrix Pictures!”

Looking at the young Chinese man who took the initiative to stretch out his right hand towards him, Justin Lin hurriedly stretched out his right hand. At the same time, he also carefully looked at the boss of the film company who looked much younger than himself.

“Hello!”

“Please sit down!” After glancing at the cups on the table, “Buddy, let someone bring another cup of coffee to Mr. Lin!”

“No, I’m not thirsty!” Justin Lin said quickly.

“It doesn’t matter! Mr. Lin is our guest, and we have an obligation to entertain you!” Guo Shouyun waved his right hand, and Buddy nodded and walked out.

“Mr. Lin, about the movie, did Buddy talk to you just now?”

“Already talked about it! The $150,000 directing fee is really good for me. But I’m more curious how you found me? After all, directors like me graduate a lot from UCLA every year! “After a little composure, Justin Lin wondered.

“Introduced by a friend. As for the specific person, I won’t say it! Time is precious. If Mr. Lin agrees to direct and has no opinion on the cost, we can talk about the specific matters of the filming next?” Guo Shouyun changed the subject. .

Justin Lin nodded. Right now, he doesn’t have the strength to bargain with Guo Shouyun, so he can only follow the other party’s baton.

“The name of the movie you want to make is called “Fast and Furious”, which is adapted from a best-selling novel I just released. The shooting cost is 40 million US dollars. We have prepared the funds, and the actors are also investigating. I believe it will soon be able to start shooting Now, Director Lin’s task is to read the entire novel, design split-angle shots, and strive to shoot the entire movie as soon as possible!”

Having said that, Guo Shouyun handed over the “Fast and the Furious” novel prepared in advance.

“How long do I have to prepare?” Justin Lin asked after taking a look at the novel.

“One month! But if it can be shortened, make it as short as possible.”

Considering that the set and investment of “Fast and the Furious” is much higher than that of “Smart: Ghost Story”, Guo Shouyun also relaxed the film preparation period accordingly.

“I understand!”

“Director Lin, if this adaptation of “Fast and the Furious” can pay for itself, then the follow-up series will also be directed by you. And I assure you, it will be a series of at least 5 films.”

When the words fell, Guo Shouyun clearly saw something called ‘ambition’ sprouting in the eyes of the young man in front of him.

After nodding vigorously with excitement, “I promise, I will use all my energy and time to direct this movie!”

“That’s the best way to go!”

After smiling and nodding, Guo Shouyun took the director contract from Buddy Morris and handed it to Justin Lin.

“Look at it, if there is no problem, you can sign your name on the back!”

Justin Lin nodded and read the entire contract carefully, but found no traps. Moreover, no one like him with a lot of wealth would attack him.

“Happy cooperation!”

“Happy cooperation!”

After sending Justin Lin away in person, Guo Shouyun returned to the company and handed over the contract to Buddy Morris for preservation.

“How’s it going with James?”

“His speed is very fast, and it will be finished in two weeks!” Morris said.

“That’s good!” Guo Shouyun nodded, and after thinking for a while, “Let the marketing department prepare it, and I will be personally responsible for the announcement!”

“Yes!”

“By the way, prepare another contract for me!”

“Prepare another contract?”

Glancing at him, Guo Shouyun smiled and said, “Why, forgot what I told you before?”

Buddy Morris was stunned, but quickly smiled bitterly: “Boss, the entire matrix film industry is yours, is it necessary to divide it so clearly?”

“Of course it is necessary. The company is a company. Although all the company’s shares are in my hands, the company is not owned by me alone, but the result of everyone’s joint efforts. I don’t want to harm the healthy development of the company because of private interests. …Morris, at any time, the separation of public and private is a taboo for corporate development, especially in terms of finance!” Guo Shouyun said solemnly.

Feeling the convincing aura emanating from the young man in front of him, Buddy Morris nodded earnestly and quickly prepared a copyright sharing contract according to Guo Shouyun’s request.

The content of this contract is: Guo Shouyun transferred the film adaptation rights of “Fast and Furious” to Matrix Films, and at the same time received 10% of the total income of the film and film and television as a return. The same is true for the previous “Smart: Ghost Recording”.

That is, Matrix Films is privately owned by Guo Shouyun, and he has the absolute right to speak, otherwise no film and television company would agree to the 10% share.

In addition to the high-sounding remarks Guo Shouyun said before, the core reason for using this form to separate personal and company financial income is to avoid tax and raise funds.

Tax avoidance is easy to understand. After charitable donations in the United States, the personal income tax credit is 50%, and the corporate income tax credit is 10%!

If the company has annual revenue of 10 million US dollars. Assuming that accounting costs are 40% of total revenue, the remaining taxable gross profit is $6 million, and the net profit after tax is $3.6 million.

The above is the normal revenue and profit of a company, and then how to avoid tax.

Now it is also 10 million US dollars, and we have to give 1 million US dollars to Guo Shouyun first. If it is an ordinary author, this part of the copyright cost may only need tens of thousands of dollars, but now it has suddenly become 1 million.

Then after deducting the 1 million dollars, there is still 9 million US dollars left. UU Reading www.uukanshu.com deducts about 4 million US dollars in cost, and the remaining tax deduction is 5 million US dollars.

Now, in order to deduct taxes, Matrix Films decided to donate 10% to charity, which is $500,000, which also happens to be the highest standard of tax deduction for corporate income tax in the United States. As for the donation object, of course, it is the “Guo’s Charity Fund” established by Guo Shouyun from the beginning.

If the two items are deducted, the remaining taxable part is only 4.5 million US dollars. According to the 35% corporate income tax tax standard in the United States and other state surcharges, if it is calculated according to 40%, then the remaining net profit of Matrix Films is $2.7 million.

In this way, compared to normal circumstances, Matrix Pictures only lost about $900,000 in net profit. But Guo Shouyun has an extra $1 million in income and $500,000 in capital. One plus and one minus, in terms of capital control, Guo Shouyun has an extra $600,000.

600,000 US dollars may not seem like much, but if the company’s annual revenue is enlarged to 100 million, 600,000 will become 6 million. A billion is 60 million!

Of course, Guo Shouyun’s personal income also needs to be taxed, but the income tax credit for personal charities in the United States is 50%. So his tax base of 1 million becomes 500,000. Invisibly, personal income tax was cut in half. Although half of the wealth donated has only control. But the control is in hand, and it doesn’t matter who owns it. It’s up to me to spend the money anyway.

The role of financing is also easy to understand. If Guo Shouyun’s income from the transfer of film and television copyrights is high enough, it means that the ABS bonds he issued on this basis have sufficient repayment ability. The risk is small and the return is reliable. Naturally, it can have low interest and high rating, which is favored by investors.