American Tax Officer

Chapter 807: Chapter 404: Foundation (2)_2
 

Of course, the Internal Revenue Service had considered this before.

But because of the charitable foundation’s financial data, which legally doesn’t need to be disclosed to anyone or any authority, they had no way to begin an investigation and were forced to give up.

However, Inspector David is different now, as he possesses the ability to scrutinize, and there’s no need to conduct any investigation into the foundation at all.

All he needs to do is use the system to scrutinize some key individuals to obtain detailed information and evidence!

Mo Ang’s expression changed slightly, but he immediately continued to argue, “Inspector David, according to tax law, the flow of funds within a foundation is something the Internal Revenue Service cannot interfere with…”

“Right, you are correct, we indeed cannot interfere with the funds injected into the foundation, but we do have the right to interfere with the income generated from investing those funds!”

No sooner had David finished speaking than Mo Ang immediately retorted, “Inspector David, that’s not correct. According to section 3627 of the tax law, the entirety of the funds inside the foundation…”

“Smack!”

Before Mo Ang could finish, David pulled out a book of tax laws from the desk and slammed it onto the table, startling him.

“Mr. Mo Ang, do you really think you know the tax law better than I do?”

“This…”

Mo Ang was left speechless by the rebuff.

Following that, David flipped the book of regulations open to page 78 and turned it over to push it in front of Mo Ang, saying, “Look carefully, the tax law here specifies ‘the amount of money injected by the foundation,’ so it does not include the benefits generated by the foundation, understand?”

Mo Ang looked closely and his expression darkened somewhat.

Because the foundation had never been audited, he had always believed that no one had the right to investigate where the foundation’s money went.

But now, if one were to nitpick, David did indeed have a point.

But what of it!

Even if the Internal Revenue Service has the right to investigate the benefits generated, he also had the right not to cooperate with the investigation.

As long as he refused to cooperate and kept the data confidential, he didn’t believe that David could do anything to his foundation!

Thinking this, Mo Ang felt much more at ease and arrogantly crossed his legs, saying, “Hmm, Inspector David, what you said makes sense, but so what? What can it prove?”

“As far as I know, your foundation is firstly a ‘charitable trust institution,’ and within this charitable organization, your clients have deposited a total of over fifty billion US dollars, which, by investing in America and industries around the world, generate a net profit of over one billion US dollars each month!”

“But this money you cannot touch, so you have also established a family foundation for your clients where the income generated is cashed out through the charitable fund into the family funds, perfectly becoming personal assets. Am I right?”

The complacent Mo Ang, who had been lounging back with his legs crossed, changed his expression drastically at these words.

Because the data on the funds and profits within his foundation had never been disclosed, how could this David in front of him know about it?

To figure this out, Mo Ang asked urgently, “Where did you get these data from?”

“You don’t need to worry about that; you just need to answer yes or no!”

“No, these are not the real data!”

Although the data David mentioned was indeed real, it was not enough to shake his bosses’ foundation. At the moment, all Mo Ang needed to do was deny it.

“Alright.”

David didn’t seem surprised and continued, “Red, Wordsworth, Meg… all former government officials who, after stepping down, have all joined your foundation as consultants.”

“The foundation set their annual salaries at $6.3 million for Red, $4.6 million for Wordsworth, and Melo…”

“And of course, having received this money, they had to act. Every midterm election, they would take out $12 billion from the foundation, using it to finance the campaigns of congressmen and to support their political careers, isn’t that right, Mr. Mo Ang!”

If Mo Ang had appeared only slightly flustered by the previous remarks, the words that followed from David sent him into an abyss of despair.

He couldn’t understand how David had come to know about the foundation’s confidential funding and revenue. How had he also obtained information about the foundation’s consultants and the funds directed towards supporting the congressmen?

If this data were leaked to the media, it wouldn’t just cause the bosses behind him to be disgraced, but being caught in a media whirlwind would be inevitable.

And as the head of the foundation, could he possibly have a good ending?

“Of course, your clients have vast funds, and merely hedging with public charitable trust funds and family trust funds isn’t enough. So, you’ve devised a scheme. For instance, you establish a company, A. After some time in operation, its valuation is claimed to be $2 billion, although that’s just on paper—no one would actually buy it.”

“Then a multinational corporation B, located abroad, buys all the business of company A for $2 billion. After some time in operation, company B sells it to company C for $2.3 billion, and company C takes A public.”

“In the end, your foundation steps in to buy up all the shares of A. After a few years of operation, company A faces bankruptcy and closure, and then you profit billions through a shell company.”

“Relying on this model, not only can you inject billions more into your funds every month, you can also evade all taxes, right?”

“So now, do you think we have the right to intervene?”

David didn’t care what Mo Ang was thinking, as he disclosed all the top-secret information he had reviewed.

“You… you… I don’t acknowledge any of these allegations!”

By now, what else could Mo Ang say? He could only deny the accusations, sweating profusely.

But David didn’t indulge him anymore and looked at him with a sharp gaze. “Do you need me to bring in each of those hedging managers responsible and question each one? Do you think they can keep their composure like you?”

Mo Ang gritted his teeth and said, “What exactly do you want to do? You know who my clients are!”

“So what? You think I would still be afraid of that now?”

“You…”

By now, even if Mo Ang was foolish, he understood that David wasn’t just targeting the foundation. It was clear that he wanted to leverage the momentum of pushing through the offshore tax evasion bill to further strike at The Big Three Groups.

“Mr. Mo Ang, cooperate with me honestly, and I assure you, you’ll be out of trouble. Otherwise, you will surely end up as the scapegoat they put forth!”

If this matter were to break out, it’s uncertain whether the owners behind the foundation would be in trouble, but as the head of the foundation, Mo Ang’s wrongful diversion of these ‘charitable funds’ into private pockets and into midterm campaigns would definitely earn him the public’s scorn.

And he couldn’t escape legal punishment!

“What do you want?”

Mo Ang wasn’t an idiot; he understood that while everyone knew the foundation was a tool for the rich to evade taxes, that was knowing it in private. If it were blown open publicly, that would be a different matter altogether.

“It’s simple. I need details of your foundation’s contacts with your clients and every transaction’s financial flow, as well as some evidence that ensures this matter cannot be dissociated from your clients.”

“No way, they’ll kill me!”

“I told you, you’ll be safe, but if you insist on being stubborn for them, you will be the first one to suffer. Think about your son. He’s only two years old. Do you want him to have to visit you in prison for the rest of his life?”

Hearing David’s words, Mo Ang’s face filled with resentment as he angrily said, “Inspector David, I admit that you now hold unmatched influence in America, but our clients are not to be trifought with. What makes you think you can keep me safe?”