Cosma Empire

Chapter 681: This is how the game is played

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Memnon was always well aware of what was happening in the outside world during his restricted movement. The headquarters did not allow him to go out, but they did not say that he would not be allowed to read newspapers. He could also make phone calls to the outside world under recording and monitoring conditions. . After all, Memnon is also a mayor and the leader of the Kadima Party. He still has some important tasks to deal with. No matter how unkind the headquarters is, these things will still make it easier for him.

So Memnon knew what was happening outside, very clearly.

He knew that the West Mining Society was doomed, and he knew even more that if the people in the West Mining Society were really doomed, these bastards would definitely drag him down. In the special environment of the West, many forces have cooperative relationships with each other, and some are hostile to each other, but it is not so easy to make it clear.

Take Memnon and the West Mines Association as the most typical example. If Memnon dies, the executive members of the West Mines Association may hold a grand celebration to celebrate Memnon’s demise. This bastard has formulated many policies for The executive committee members of the Western Mining Association and the mine owners were very unhappy.

For example, as long as the minimum salary and the minimum job system can make them unhappy, Memnon is very happy to do it. Similarly, the West Mining Association has also caused some trouble for Memnon, but this does not mean that the relationship between the two parties There is no cooperative relationship. As long as both parties can cooperate satisfactorily with each other, they are still willing to try to work together to obtain the benefits they want, and taxation is a very important factor in this.

Why does the West Mining Group have to firmly grasp the pricing power of the West Mining Group in the western mining field, even if they refuse to give in when facing Memnon and other large mining groups

This actually involves some things that outsiders don't know at all, but Memnon knows it, and he is also one of the participants. This issue is taxation.

How to turn an income of 10 million into 5 million and then reduce the tax from 3.5 million to just over 1 million

This involves a floating indicator - price.

West Mining will use its strength and strength gained from more than ten years of operation to firmly control the pricing power of western ore resources. They claim to the outside world that this is the guide price. At the same time, they will also tell everyone that this is the final selling price this year, regardless of No one is allowed to have any price fluctuations no matter who buys it. Even if the two parties to the trade are related to the executive committee of the West Mining Association, the price will not fluctuate under such circumstances, except for some outside-the-line transactions based on favors.

This seems to restrict free trade in the market, making the entire mining resources market lifeless and lacking competitiveness. There should be many mine owners who are very dissatisfied with this approach of the Western Mining Association, and may even take the initiative to leave the Western Mining Association.

Iron ore only costs more than ten yuan a ton outside, but the quotation I got from the West Mining Association said it was forty yuan a ton. This kind of fucking monopoly will cause many mine owners to suffer huge profit losses..., but in fact it won't.

There is actually another thing here that continues to seduce the mine owners to continue to follow the West Mining Association and never tire of it.

This is a very complex economic ecosystem. To put it simply, the West Mining Association has helped almost all mine owners save a lot of taxes by firmly controlling the prices of mining resources. For example, the price of copper mines is rising rapidly this year, from 145 yuan last year to 220 yuan per ton. However, the price set by the West Mine Association has not changed from last year, with an increase of only 5 yuan. Money, one hundred and fifty yuan per ton.

But at the same time, bauxite has plummeted due to the discovery of the huge vein of Yagul Mountain, from 62 yuan last year to 10 yuan this year. However, the price of bauxite in the West Mining Association is only less than last year. Two yuan, keeping the price at sixty yuan per ton.

Presumably only a fool would use the so-called guide price to buy premium bauxite from the west instead of choosing imported bauxite that costs less than 35 yuan per ton plus transportation fees, but there are indeed such fools, because this This is the unique trick that the West Mining Association uses to monopolize the mining industry in the west and win over all the mine owners.

When a customer conducted a transaction under the supervision of the West Mining Association at the normal market price, he purchased 10,000 tons of copper ore for 2.2 million, but what was listed in the contract was that he only purchased Four thousand tons of copper ore worth 600,000 yuan, and some resources with very low tax rates but much higher than the market price, such as bauxite, were purchased. In the end, the total amount on the contract had to be raised to 2.2 million, and then the supply and demand parties completed the transaction under the witness of the West Mining Association.

When they start filing taxes at the end of the year, they will file separate tax returns for the 2.2 million. The empire has a certain degree of tax reduction and exemption dividend policy for resources that are in great demand for development and construction. This needs to be explained separately. Each of the empires Each state has its own laws. As long as it can ensure that the Constitution and Basic Law are also included in the content of state laws, the empire will recognize the legitimacy of state laws. The specific data on tax issues does not exceed the upper and lower limits set by the Imperial Taxation Administration. Generally speaking, the Imperial Taxation Administration will give an approval.

Through the operation of the West Mining Association, companies in need of ore purchased the full amount of copper ore they needed at normal market prices, saving a lot of time and transportation costs for imported freighters, and also had sufficient cooperation with Memnon Friendship, they have not lost any real benefits, and in addition, they will have another additional income.

In turn, for the mine owners, they might have had to pay the tax at a tax rate of 35% on the non-ferrous metal copper ore with a transaction volume of 2.2 million, but in fact, in all the documents, this name The mine owner only sold copper ore worth 600,000 yuan, and now only needs to pay 210,000 yuan tax out of the 770,000 yuan tax that was originally required. On the other hand, Memnon stipulated that bauxite is conducive to the development and progress of social construction or for some other reason, bauxite is listed as a special resource that has a positive role in promoting social development, and the tax is reduced by 20%. The tax rate of 5 is only 10%.

Mine owners need to pay a low-price tax of 160,000 yuan for the sale of bauxite. Adding the previous 210,000 yuan, the total tax paid is 370,000 yuan, which is 400,000 yuan less than the normal tax.

Of course, the extra bauxite on the other side also needs to be costed. For this transaction, they have to pay at least about 25,000 tons of bauxite. The calculated cost is 250,000. In fact, the mine owner saved 150,000 tons. Thousands of taxes.

But can this alone make the mine owners wholeheartedly follow the West Mining Association

No, no, it's not over yet.

Follow-up gameplay will occur here. For example, if the mine owner responsible for providing bauxite cannot fulfill its commitment in the contract to pay enough bauxite, the mine owner is willing to pay liquidated damages and "refund" the money for the bauxite. Businesses purchased. They will strictly follow the procedures in the contract and close the transaction in compliance with legal requirements. But the money will not really return to the hands of the demander. The money will go back to the mine owner's pocket after being circulated in the West Mining Association. Of course, liquidated damages have to be paid. After all, people are playing with them. In such a game, there must be some expression, right

So the tax of 160,000 yuan generated by the sale of bauxite can be refunded, and 160,000 yuan will be refunded. Assuming that 50,000 yuan is liquidated damages, the mine owner will eventually get back 110,000 yuan. Fifty thousand plus the previous tax of 210,000, they saved 510,000 in this transaction!

The actual tax paid is only one-tenth of sales. Saving such a large sum of money is very attractive to all mine owners.

As for why things have become so complicated, that is because the tax bureau itself is managed vertically and does not accept the management of the city hall and state government. They are only responsible to the Imperial Taxation Administration. These people would be on the scene for any big deal, and in order to fool them, 6,000 tons of copper ore was mixed with the first batch of 25,000 tons of bauxite. The purpose of this was In order to minimize the risk of tax evasion, we can also transport things out.

Through this method, all parties can obtain huge benefits. The mine owners saved 510,000 yuan in taxes. The Western Mining Association once again consolidated its dominance in the west. At the same time, it also collected tens of thousands of yuan in handling fees. The companies that purchased the ore After purchasing qualified and sufficient items at market prices, they can still earn an additional tens of thousands of yuan. Each of these three parties has gained more profits than normal trade.

So what did Memnon gain

He won the friendship and favor of the capitalists. This is why he was able to get the vast majority of capitalists in the West and capitalists outside the West to support him. If there is no agricultural gate, outside capitalists want to buy ore at market prices? It is better to spend more money to import from abroad and save time. Maybe the price of the ore will be much cheaper than buying it from the west. This is when the indicator can be used.

The indicator is to tell those merchants who do not intend to play the game according to this game system that you can buy at the guide price, but each person can only buy three to five tons or thirty to fifty tons. If you want more, just wait until next year!

With the cooperation and restraint of multiple parties, these seemingly enemies successfully put the tax money back into their own pockets from the tax bureau's treasury, and everyone benefited from it.

If anyone loses money, it’s probably the imperial tax system. The tax amount of 770,000 yuan turned into 210,000 yuan, which is quite a loss!

It is precisely because Memnon was also involved in this game and played a very special role that he was even more afraid that these executive members of the Western Mining Association would be arrested. Once they face torture, they may say what they should and shouldn't say at any time. This is a huge scandal, a huge scandal that can affect Memnon's governance, so he must think of all ways , to resolve this crisis.

The above is purely fictitious and any similarity is definitely a coincidence. I am wronged! In addition, the examples are simply examples so that everyone can have a simpler and easier understanding. They do not represent any practical significance and are only examples.

(End of chapter)