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Chapter 69 Legal Operation

Ronan came back to dinner at Helen's restaurant.

"I heard that Hollywood actresses are willing to do anything to get a role?" Tony Koch, Helen's son, was full of curiosity: "Ronan, is this true?"

Ronan did not answer positively, but said, "There are always some people who are more courageous."

Tony Koch is a few years older than Ronan, but he is far less mature than Ronan: "You can take me to see it next time you shoot a movie."

Helen swallowed the food in her mouth and reminded: "Tony!"

"Mom! I'm dealing with a bunch of old men all day in Munich." Tony complained: "It's so boring."

Ronan did not refuse directly and said, "Tony, you have to go to Los Angeles with me."

Tony scratched his head: "Are you not going to Berlin to make a movie?"

"It's some business in handling movies." Ronan cut a piece of barbecue, put it in his mouth and tasted it carefully, then raised his thumbs up to Helen: "Auntie, your cooking skills are amazing."

"Thank you." Helen looked very happy.

Tony Koch interrupted: "Ronan, let's talk about some interesting topics, such as celebrity scandals and secrets."

Ronan put down his knife and fork, wiped his mouth with a tissue, and said, "Tony, do you want to know?"

"Yeah." Tony focused heavily.

But Ronan laughed: "You open a film company and you will know everything soon."

Tony Koch shrugged: "I can't handle the film company."

Helen thought Ronan was joking and said, "Tony is doing finance and has never been involved in this industry."

Ronan looked at Helen and said seriously: "Auntie, Tony, do you want to open a film company?"

Tony was stunned, but Helen stared at Ronan. Ronan was very calm: "This is not a joke."

"I said Ronan." Although Tony was immature, he was not stupid. "Your suggestion was too outrageous."

Helen shook her head straight: "Dear, we don't understand movies, nor do we understand the operation of film companies. We are completely laymen."

Ronan said seriously: "I mean registering an empty shell film company... By the way, aunty, you are the legal person of the meat company?"

"It's me," Helen said.

"You can get Tony to register a film company," Ronan said with a smile. "Partner with my Shahai Entertainment and then legally avoid taxes for you and your meat company."

Helen hasn't been in contact with the film industry much, but when she heard about legal tax avoidance, she also became a little interested: "Really?"

Ronan said directly: "The German tax law stipulates that if personal income and part of corporate income are used for film investment, the tax on this part of the income will be exempted."

"I know this." Helen still has some understanding of the tax law: "But film investment is a high-risk industry, and all the money invested in it may be lost. Moreover, I don't understand the operation of movies at all. Even if I open a film company, I don't know how much tuition to pay."

Ronan reminded: "Auntie, you have ignored it. I am talking about an empty shell film company. This company does not need to build a movie project or actually shoot a movie."

Helen was completely confused by Ronan: "I don't quite understand what you mean."

But Tony became interested: "If we can really avoid taxes legally, it's okay to open a shell company. We have to pay so much tax to the government every year."

Helen glared at her son and asked, "Ronan, why don't you register a company by yourself? Whether it's a foreigner or a German, it's easy to open a company in Berlin."

Ronan shook his head: "If you want to legally avoid taxes through movies, you must be a German company."

Helen thought for a while and said, "You can talk about it in detail."

Shell companies don't cost much, and Ronan also looks like a very reliable person.

Ronan said carefully: "Auntie, I am operating two film projects with a total budget of $40 million. If Tony has a film company, I will sell the two projects to Tony for $40 million..."

"Wait." Tony interrupted, "$40 million...Ronan, you sell me."

Ronan ignored him and said, "I will sell the copyrights of the two projects to Tony's company, and then rent the video from you at a suitable price, such as $25 million or $30 million, and continue my preparations for filming."

"Hmm?" Helen was full of doubts.

"Listen to me," Ronan continued: "Auntie, your annual personal income tax and some of the company's taxes are very high, right?"

"Yeah." Helen nodded slightly.

Ronan continued: "According to German tax laws, if the income of enterprises or individuals invests in movies, this part of the money can be included in the tax exemption, and the return on investment is regarded as normal after-tax income, which means tax exemption."

Tony said at this time: "I understand. For example, if I get 1 million income, I have to pay the highest proportion of personal income tax according to the tax law, that is, 510,000, but I actually get only 490,000. But if I use this million to invest in movies, I will get 1 million movie income share, and this million will be tax-free."

Ronan has studied many cases before and consulted lawyer Mueller in detail, which is more familiar to most Germans.

"It's very correct. Your income of 1 million has escaped the tax bureau's exploitation." Ronan said calmly: "It's still a completely legal way."

Helen, also a businessman, said, "This is a legal way to avoid taxes." She shook her head again: "But my personal and company's annual income combined is not $40 million."

Ronan said, "Aunt Helen, your friends or partners, can use this method to avoid taxes." He almost patted his chest: "I own a Hollywood production company, aunty, you have advantages that no one else has."

Helen is thinking seriously.

Ronan said again: "If Tony's shell company can attract $40 million and then purchase the copyrights of my two projects, I can guarantee Tony will recover $40 million. First, Shahai Entertainment prepaid the movie revenue of $30 million as rent, and then pays $10 million in investment share, and Tony's 40 million in investment will not be less."

"It's indeed a good idea." Tony nodded repeatedly: "Tax avoidance alone can be worth the company's operating profit for a long time."

For any company or high-income group, taxation is a headache.

Ronan said again: "Tony, you helped so many people legally avoid taxes, and the handling fee of 5% is not much."

Tony's eyes lit up.

Ronan said again: "According to my understanding, film companies operating in Germany generally charge a handling fee of 5 to 10% of the total investment of investors, up to 15%.

Tony laughed: "This is not high at all for those who have to pay 30% of the tax."

"Ronan, you won't come to Berlin to help your aunt avoid taxes, right?" Helen suddenly spoke.

"Of course not." Ronan said the truth: "I have benefits, too."

He said directly: "The German tax law also stipulates that film investors can get a tax refund in advance before the filming begins. It is not only effective for German movies, but also for foreign movies invested by Germans. German law does not require movies to be filmed in Germany or to cooperate with German filmmakers, but only requires German film companies to have the copyright and corresponding dividends."

"I sold the film copyright to Tony, so that it would be completely in line with the law. Then Tony would lease the film copyright to me for a period of 20 or 50 years. When the project operation ends, I would buy back the film copyright at a symbolic price."

"The conversion between these two projects between Shahai Entertainment and Tony's company is equivalent to an additional tax refund from the German government. The tax refund amount is roughly 10% of the estimated revenue of the film project. This estimated amount must be supported by enough actual data, and it cannot be too high."

Helen sees through the essence: "If the tax refund is $10 million and the movie has not started filming, your $40 million may turn into $50 million."

Ronan smiled: "It may not be big to get $10 million."

There is an intermediate agent to help pass the review. All of these require money and it would be great if you can get millions of dollars.

However, this money is a tax refund and does not need to be included in the income of the two film projects.

Helen picked up the water cup, took a long sip, and said, "Are you sure that those two projects can get tax refunds?"

Ronan said the truth: "I have found an intermediate agent who has successfully completed this business many times, and I am 70% sure."

Helen put down the water cup and said, "I'll think about it seriously."

After dinner, Ronan and Tony continued the topic just now in the living room. Helen entered the study and called the company's lawyer: "Lawyer Hans, you come to my office tomorrow. I want to consult you some things."
Chapter completed!
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