I collect gold fingers in the heavens

Chapter 551 The Wonderful Country 2
What is even more exaggerated is that for this controversy, the Tianzhu Taxation Bureau mobilized Congress to amend the tax law and suspended 69 bilateral investment agreements.Hit the south wall without looking back, stick to the end.

The fact is this.

The Tianzhu Tax Bureau required [Vodafone Group] to pay taxes of 1200 billion rupees. If [Vodafone Group] did not pay, it would first freeze its deposit of 250 billion rupees.

[Vodafone Group] refused to accept it and filed a lawsuit. The Supreme Court of Tianzhu saw that there was no legal basis for this, so it ruled that [Vodafone Group] won the lawsuit and lifted the withholding obligation imposed on [Vodafone Group] by the Tianzhu Tax Bureau. Vodafone's decision to withhold 1200 billion rupees in taxes was revoked, and at the same time, the previously seized deposits of 250 billion rupees were also refunded, plus the return of 4% annual interest.

Seeing that the money in hand was flying away, Tianzhu tax bureau was of course not convinced, so it encouraged Congress to pass the 2012 Finance Act to amend the income tax law, adding several clauses. According to these new clauses, [Vodafone Group] not only needs to pay taxes, There is also a fine.Taxes and penalties totaled $33 billion.

What is even more speechless is that the Tianzhu Tax Bureau said that this is not a new regulation, but to clarify some statements in the existing tax law. It should take effect from the effective date of the existing tax law, that is, 1961, retroactively for 50 years.

Well, 50 years!
It came into effect just a year before the 1962 invasion to defend the capital of Ridley.

Why didn't the Tianzhu tax bureau trace this tax law back to 1947?

In that year, didn’t the founding father of Tianzhu rely on the uncooperative spirit of “Don’t let me be independent, I’ll show you to death on a hunger strike” to successfully establish the country?
The Tianzhu National Assembly revised the tax law, and the tax bureau appealed accordingly. The Supreme Court saw that there was a legal basis for it, so it changed its position and ruled in favor of the Tianzhu tax bureau.The Tianzhu Tax Bureau once again asked Vodafone to pay back taxes, late fees and fines, and the three items rose to 51 billion US dollars, doubling the original tax amount.

Now the whole world is fried.Going back 50 years, how many old accounts have to be uncovered?This is not Vodafone's business. It involves countless multinational companies investing in Tianzhu.Even the U.S. Chamber of Commerce got involved.

Because it has been involved in international disputes, [Vodafone Group] applied for arbitration according to the arbitration clause in the signed [BIPA] (Bilateral Investment Promotion and Protection Agreement).

The tribunal held that, based on the fair and equitable treatment requirements under BIPA, the Tianzhu government should guarantee foreign investors a stable and predictable legal framework that is fair and procedurally just.The legal framework involving foreign investors needs to be continuously revised, and the revision must be transparent and not arbitrary.

The Tianzhu government is not clarifying, but adding new content, and there are many unclear points in the content you added, and there will be more clarifications to be done later.

Doesn't this confuse investors?
It is uncertain which trading behavior that was originally reasonable and compliant was considered a "fat sheep" by the Tianzhu government, so it unilaterally declared that the transaction party was "violating the law" and would be fined and taxed!
Therefore, on September 2020, 9, the International Arbitration Tribunal passed a ruling in support of [Vodafone Group]'s claim, ruling that the previous practices of the Tianzhu government violated the standard of fair and equitable treatment under the Tianzhu Netherlands BIPA.

The arbitral tribunal asked the Tianzhu government to return the costs related to the [Vodafone Group] lawsuit, about 8.5 million rupees, saying that the Tianzhu government ignored the judgment of the Supreme Court, imposed tax obligations on the plaintiff, and also charged interest and fines, which violated the fairness and justice under BIPA and the principle of fair dealing.

The Tianzhu government should immediately stop the above violations of BIPA. If it fails to abide by the above BIPA, the international community will bear its own responsibility.

In fact, the Tianzhu government used many coquettish methods during the arbitration process to oppose the arbitration tribunal's ruling.

However, under the threat of the big stick of international trade, it still gave up.

After this incident, the Tianzhu government immediately amended the relevant laws. If the agreement between the two parties can be terminated, it will be terminated. If the bilateral agreement cannot be terminated, it will be mentioned in the clause that taxation is not subject to jurisdiction. It does not fall within the scope of arbitration of the International Trade Dispute Arbitration Tribunal.

in fact.

In essence, there is some reason for the Tianzhu Taxation Bureau to collect taxes from [Vodafone Group].

Although the companies traded by both parties are not companies registered in Tianzhu, these companies are all shell companies, and the real value is the company operating in Tianzhu.

What you are really trading is a company in our country. If you make a profit, I will charge a little transaction tax. Is it normal?
Think about it, it's normal!
But the problem is, you don't have a law that requires you to pay taxes in this situation!

You don’t have things stipulated by the law, and if you see that it is profitable, you have to modify the law to make money?
Which company can stand it!

Laws and regulations must be formulated in advance to let taxpayers know, so that taxpayers can fulfill their tax obligations.

For example, in this case, the Tianzhu government patched up the regulations after the fact and retroactively took effect, which made it difficult for foreign investors to fulfill their obligations.Especially for the withholding agent, the withholding obligation must be clearly stipulated in the laws and regulations at the time of payment.If it is not clear, if the payment has already been paid, regulations will be formulated afterwards to add the withholding obligation and take effect retrospectively. Where can people deduct the payment? Is it possible for others to return the payment that has already been paid?The basic principle of law is that one cannot enforce what others cannot do.

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Tianzhu Kingdom even dared to cheat the consortium of its former suzerain country, the spiritual motherland - the Great Eagle Kingdom!

How could Wu Siyuan dare to let [Super Group] invest in such a country with an uncertain business environment!
No matter how profitable it is, it is just a poisonous apple.

Wu Siyuan was afraid that if he ate it, he would not survive!

Thinking about the previous business environment in Huaguo, it really praised foreign businessmen to the sky.

But it has to be said that it is precisely this kind of environment that is extremely friendly to foreign businessmen, coupled with the spirit of self-improvement of the people, the domestic economy was able to develop at a rapid pace in those ten years, and finally developed to the present, no longer There is no need to rely too much on foreign businessmen, and the privileges of foreign businessmen are gradually abolished, and the lives of the people are getting better and better.

Looking at it from Wu Siyuan's point of view, although he suffered a lot of grievances during that time, from a general perspective, it was worth it.

To describe it in four words, it is [bear the burden of humiliation]!
To use a celebrity to describe it, it is [Yue Wang Goujian]!
Huaguo can make such a big sacrifice for economic development, but Tianzhu, a country whose leaders have been thinking about it for ten days and nights, can't figure it out.

(End of this chapter)