The Best Entertainment Era

Chapter 69: Legal operation

   Helen’s restaurant, Ronan came back just in time for dinner.

   "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 directly, but said: "There are always some people who are bolder."

   Tony Koch is a few years older than Ronan, but he is far less mature than Ronan: "Next time you make a film, take me to see it."

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

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

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

   Tony scratched his head: "You didn't come to Berlin to make a movie?"

   "It's dealing with movies." Ronan cut off a piece of barbecue, put it in his mouth and tasted it, and then gave Helen a thumbs up: "Auntie, your cooking is great."

   "Thank you." Helen looked very happy.

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

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

   "Hmm." Tony nodded his head heavily.

   Ronan laughed: "You start 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 in finance and has never been in this business."

   Ronan looked at Helen, and said seriously, "Auntie, Tony, do you want to start a movie company?"

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

   "I said Ronan." Although Tony is immature, but not stupid, "Your suggestion is too outrageous."

   Helen shook his head straight: "My dear, we don't understand movies or the operation of film companies. We are totally outsiders."

   Ronan said seriously, "I mean registering a shell film company... By the way, auntie, you are the legal person of the meat company, right?"

   "It's me," Helen said.

   "You can let Tony register a film company." Ronan said with a smile: "Cooperate with my Shahai Entertainment, and then legally avoid tax for you and the meat company."

  Helen has never been in contact with the film industry, but he is somewhat interested in hearing about legal tax avoidance: "Really?"

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

"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, and I don't understand film operations at all. Even if I start a film company, I don't know what to do. How much tuition will be paid."

   Ronan reminded: "Auntie, you ignore it. I'm talking about a shell film company. This company does not need to build a film project or actually shoot a film."

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

   Tony became interested: "If you can legally avoid taxes, you can start a shell company. We have to pay so much tax to the government every year."

   Helen glared at his son and asked, "Ronan, why don't you register your company yourself? It is easy to start a company in Berlin, whether you are a foreigner or a German."

   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 be specific."

   Shell company doesn't cost much, Ronan also seems to be a pretty reliable person.

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

   "Wait." Tony interjected: "40 million dollars... 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 film back from you at a suitable price, such as 25 million US dollars or 30 million US dollars, and continue. My preparations for shooting."

   "Huh?" Helen was full of doubts.

   "Listen to me." Ronan continued: "Auntie, your annual personal income tax, as well as some corporate taxes, pay a high amount, right?"

   "Hmm." Helen nodded gently.

   Ronan continued: "According to the German tax law, the income of companies or individuals to invest in movies can be classified as tax-exempt, and investment returns are treated as normal after-tax income, that is, tax-free."

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, which is 510,000. Actually, I only got 490,000. But I use this 1 million to invest in movies. , I will get a 1 million movie revenue share, this 1 million will be tax-free."

   Ronan has studied many cases before and consulted Mueller’s lawyers in detail. This is more than most Germans know.

   "It's right, your 1 million income escaped the tax bureau's exploitation." Ronan said calmly, "It's still a completely legal way."

   Helen is also a businessman, and said: "This is a legal way to avoid taxes." She shook her head again: "But my personal and company's annual income adds up to no more than 40 million US dollars."

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

   Helen is seriously considering.

Ronan added: "If Tony's shell company can attract 40 million U.S. dollars, and then buy the copyrights of my two projects, I can guarantee Tony will get back 40 million U.S. dollars. First, Shahai Entertainment prepaid film income of 30 million U.S. dollars as rent. , And then pay 10 million U.S. dollars in investment share, and Tony’s 40 million U.S. dollars will not be less."

   "It is indeed a good way." Tony nodded repeatedly: "Tax avoidance alone can be worth the company's long-term operating profits."

   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 5% handling fee is not much at all."

   Tony's eyes lit up.

   Ronan added: "According to what I understand, film companies operating in this way in Germany generally charge a handling fee of 5-10% of the total investment of investors, up to 15%."

   Tony laughed: "For those who have to pay 30 to 40% taxes, this is not high."

   "Ronan, you won't come to Berlin specifically to help aunt avoid taxes?" Helen said suddenly.

   "Of course not." Ronan told the truth, "I also have benefits."

He directly said: "German tax law also provides that film investors can receive a tax refund before the film starts. It is not only valid for German films, but also for foreign films invested by Germans; German law does not require films to be required. Filming in Germany may have to cooperate with German filmmakers, and only the German film company is required to own the film copyright and corresponding dividends."

"I sold the film copyright to Tony, so that it fully complies with the law, and then Tony leases the film copyright to me for a period of 20 or 50 years~www.readwn.com~ When the project is over, I will sign Buy back the movie rights at a sexual price."

"These two projects are converted between Shahai Entertainment and Tony's company. I am equivalent to an extra amount of tax refund income from the German government. The tax refund amount is roughly 10% of the estimated income of the movie project. There is enough actual data to support it, and it cannot be too high."

   Helen sees through the essence: "If the tax refund is 10 million US dollars, and the film has not yet started, your 40 million US dollars may become 50 million US dollars."

   Ronan smiled: "It might not be a big deal to get 10 million dollars."

   There must be an intermediary agent to help with the trial, all of which cost money, and it would be nice to get several million dollars.

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

   Helen picked up the water glass, took a long sip, and said, "Are you sure you can get the tax refund for those two items?"

   Ronan told the truth: "I have found an intermediary agent who has successfully completed this business many times, and I am 70 to 80% sure."

   Helen put down the water glass and said, "I think about it."

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

(The German tax rebate policy really exists. This paragraph refers to the "Film and Television Budget Manual" written by Dick Simon in the United States. There are many complex operating cases about the German tax rebate, such as the "Mission Impossible" and "Lord of the Rings" series. Here is just the simpler one. Those that are too complicated make me feel dizzy, and the professional knowledge is too bad...

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