American Tax Officer

Chapter 341: Silicon Valley Tremor_2



"Okay, I'll head over now."

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

In the conference room, the expressions of the Silicon Valley mid-level company executives tightened instantly as they saw David walk in.

Everyone seated was clear that David summoning them was certainly not as simple as having tea and a heart-to-heart; it was highly probable that he intended to make an example of them to warn the bigger players like Gugo and Microsoft.

"Everyone, don't be so tense, relax a bit."

After sitting down, David offered a word of comfort and continued, "I believe all of you are aware that our Internal Revenue Service 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, not a single one dared to take a stand.

"Mr. Kristan, what do you think?"

Seeing that he was called upon, the man named Kristan had no choice but to steel himself and reply, "Since the Internal Revenue Service has decided to initiate this tax audit operation, and the White House has also expressed support, then naturally, both I and Cisco fully support it."

"Good, Mr. Kristan, I appreciate your candor, but support is not just lip service; you need to show real action, don't you think?"

"Of course, I'll have our finance and tax departments mobilize as soon as I return and thoroughly review whether our company has any tax issues."

He knew how formidable David was, so he was clever not to directly deny that his company had tax issues.

"There's no need for that hassle, let me remind you instead. Back in 2015, our Internal Revenue Service issued a 'Technology Transfer Tax Incentive' policy targeted at Silicon Valley, intended to encourage growing enterprises like yours to share technology with startup companies, aiding their growth. And your company, Cisco, avoided paying over two billion US Dollars in taxes over these seven years, thanks to this tax incentive policy. Am I wrong?"

Hearing David's words, Kristan's complexion instantly changed, and if someone were to look closely at his lips, they would even notice a slight tremble.

In fact, not just him—many others in the room had started to feel uneasy.

When the Internal Revenue Service introduced this policy to Silicon Valley, the original intention was indeed what David had described, to help them foster the growth of smaller and nascent startup enterprises.

However, although these companies were tempted by the tax incentive, each company's core asset is its technology, and sharing it with these small startups would greatly diminish their value.

And there was also the risk of teaching the students enough to overtake their masters.

But eventually, they found an ideal workaround.

And that was merely to register some shell companies, or find some companies with no prospects for development, sign agreements with them, and share their technology with those companies. That way they could enjoy the tax benefits while not losing their core technology.

This policy eventually became a means for Silicon Valley's major companies to evade and avoid taxes.

Today, it can't be said that a hundred percent of companies in Silicon Valley exploit this tax loophole, but at least more than fifty percent are involved.

And Kristan, along with many others summoned, were anxious because since David had pointed it out, it indicated that he knew the tricks involved. If he decided to follow this lead, they could not only be accused of tax evasion but also potentially of fraudulently claiming tax benefits.
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They were all publicly traded companies, and if they were accused of such crimes, they would inevitably suffer as Amazon had—not quite dead, but certainly skinned.

"How about it, Mr. Kristan, does Cisco not participate in this tax policy?"

Although David seemed to be questioning on the surface, in reality, through the capabilities of Golden Finger, he had already confirmed that Cisco definitely participated in this policy.

"No no no, our company indeed participated in this policy, but as for the specifics, I still need to go back and inquire with our department heads. How about this, give me two days, and Cisco will provide an explanation to Inspector David, how's that?"

Whether they participated in the policy was a simple matter to verify, and since David pointed it out to his face, it meant he must have checked already, so Kristan dared not lie.

"Alright, I'll give you two days to figure this out properly!"

David shifted his gaze to another man on his left and asked, "How about it, Mr. Tchenko, what's your take on our tax audit operation?"

"My company, Alliance, and I naturally support it, after all, without the Internal Revenue Service, our country would be in disarray."

The man named Tchenko also buttered up with his response.

But David wouldn't let him off simply for his flattery and continued, "Since that is the case, Alliance also needs to make a gesture, right?"

"A gesture..."

Tchenko's complexion became hesitant.

"Forget it, let me remind you too. Back in 2016, the Internal Revenue Service introduced a 'Technology Innovation' tax incentive policy. Remember now?"


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