Chapter 751 - 472: Persuasion

Chapter 751: Chapter 472: Persuasion

When it came to the second method,

Jeff immediately grew cautious.

He warily glanced around, carefully observing his surroundings.

After confirming that no one nearby could overhear their conversation,

he leaned forward slightly, closing in on Feng Shan and deliberately lowering his voice. "The second method is a bit more complicated to set up."

He paused for a moment before continuing.

"The model is similar to the first one. You establish an independent Indigenous ANST trust, and then you fund this Indigenous ANST trust through an Indigenous Company."

"The Indigenous Company can decide for itself to contribute a certain amount of its annual net profit to this ANST trust. The key point is that distributions from this kind of Indigenous trust are non-taxable for the shareholders."

"Moreover, the designation of Indigenous shareholders can be manipulated completely as you see fit. This gives you much more flexibility in adjusting your tax situation."

"Isn’t that tax evasion? You think the Internal Revenue Service is blind?"

Feng Shan couldn’t help but suck in a breath of the chilly sea breeze, his eyes narrowing instantly, his face a mask of shock.

He quickly sorted through the plan Jeff had described in his mind.

’The more I think about it, the more I realize how much room there is to maneuver,’ he thought.

Following this line of thought, he could totally establish an ANST trust in the name of the Bear Tribe.

Then, he could take the fishing company and all the other companies under his name,

and have them all join this ANST trust in some form or another.

By then making the members of the Bear Tribe shareholders, it seemed he could legitimately obtain tax-exempt status.

At this thought, Feng Shan’s brows furrowed deeply.

Just two days ago, Tessa had given him a lecture over the matter of registering his employees under another entity.

Compared to the audacious idea Jeff was proposing now, that whole affair was child’s play.

This was practically a blatant challenge to the Internal Revenue Service.

If any problems were discovered, a fine would be the least of his worries. It could lead to legal sanctions, and he’d end up back in the slammer.

The more Feng Shan thought about it, the more he felt the risk was too great.

However, in the face of Feng Shan’s concern, Jeff simply gave a meaningful smile.

He unhurriedly picked up a piece of fried fish and chewed it slowly.

Then, he leisurely swallowed it, as if everything was under his control, before finally speaking in a relaxed tone.

"How could it be tax evasion? I’m one of the Indigenous People of the Wild Bull Tribe," Jeff said, wiping his hands with a napkin, his eyes filled with confidence as he continued.

"As a tribally-owned enterprise, an Alaska Native Corporation inherently possesses a certain degree of sovereignty."

"According to relevant regulations, tribal governments and their subsidiary enterprises are generally exempt from federal income tax, and the government has no authority to levy federal income tax on their income derived from reservation resources."

Warming to his subject, Jeff took a sip of beer to wet his throat and went on to explain, "This is a right granted to us by law. It’s a form of protection for the rights of Indigenous People."

"So, when an Indigenous Company transfers assets to an ANST, if the income related to those assets meets the criteria, it enjoys tax exemption on its own merits. It’s not the ANST itself that directly provides the tax relief."

Jeff then leaned back in his chair.

He crossed his arms over his chest, a look of complete confidence on his face.

"We are simply making rational use of these policies for legal tax planning. There is no tax evasion involved whatsoever."

"Besides, all the Alaska Indigenous Tribes operate this way. The Internal Revenue Service knows about it, of course, but there’s nothing they can do to interfere, because this is a right granted to Indigenous People by federal law."

He wasn’t interested in the specifics of these rights.

But Feng Shan latched onto one particular phrase from Jeff’s explanation.

Income derived from reservation resources is exempt from federal income tax.

He understood immediately.

’There’s a huge catch here,’ he thought.

The Crown Colony Fishing Company’s main fishing area is the Bering Sea, and the Bering Sea is definitely not within the scope of a reservation.

Even if he did as Jeff suggested and managed to avoid federal income tax,

what about the fishing tax and the specific seafood tax? How would those be resolved?

Filled with doubt, Feng Shan laid out all his questions at once.

After listening, an expression that was both amused and exasperated appeared on Jeff’s face. He chided him half-jokingly,

"Buddy, are you trying to become a Gorantai, pinching every last penny? Avoiding some federal tax is already a pretty good outcome. Are you trying to make federal employees go without a salary and beg on the streets?"

Being called out by Jeff like that,

Feng Shan felt a little awkward.

He sheepishly picked up his beer and started drinking to ease the embarrassment.

Seeing Feng Shan just drink his beer without saying a word, Jeff started to get a little anxious.

’I’ve laid everything out on the table, the good and the bad,’ he thought.

’How can he not have any reaction at all?’

Growing impatient,

Jeff decided to stop beating around the bush.

He went straight for the kill and laid out his proposal.

"Feng, the Wild Bull Tribe is preparing to establish an ANST. Several Athabasca Indigenous Companies are already planning to transfer their assets... ahem, planning to invest in it. Are you interested in joining? As for the Indigenous shareholders, you don’t have to worry at all. The Wild Bull Tribe can handle everything."

After he finished speaking,

Jeff silently observed Feng Shan’s expression, trying to catch any sign that he was tempted.

Feng Shan instantly became alert, raising his head to stare intently at Jeff.

’Heh!’ he thought.

’So after all that beating around the bush...’

’I finally see what he’s really after.’

So he wanted to pull the Crown Territory into the Wild Bull Tribe’s ANST.

Once he joined, although he might get some tax benefits, it would also mean being deeply tied to the Wild Bull Tribe, and his future development could be restricted.