The Former Empress Roughly Hides Her Abilities - Chapter 84

—————
This chapter was translated by Lunox Team. To support us and help keep this series going, visit our website: LunoxScans.com
—————

【Chapter 84】

“So what kind of tax evasion did the Prince commit?”

“There are many types of tax evasion.”

That was true.

The Empire’s tax laws had been revised multiple times, so there were many provisions that people weren’t familiar with. There were also quite a few laws that had lost their effectiveness.

Moreover, people from the Ministry of Foreign Affairs were weak when it came to tax law. It was natural since they didn’t need to learn tax law like the Ministry of Finance did.

The reason there were no tax evaders in the Ministry of Foreign Affairs was also because they didn’t know tax law well.

‘Do I need to bother tapping away at a tax calculator? Just pay according to the tax bill!’

Rianel added some light preliminary knowledge so they could understand.

“Everyone must know that the Empire’s unemployment problem is serious.”

People nodded their heads.

When most Imperial citizens were farmers, no one worried about unemployment.

If parents were nobles, their children were nobles too. If parents were farmers, their children were farmers too.

Generally, they inherited their parents’ occupations as if it were hereditary.

However, with the development of fertilizer, wheat farming became the privilege of independent farmers, and tenant farmers flocked to cities looking for ways to make a living.

As the population concentrated in narrow areas, unemployment rates began to be discussed as a problem.

“The late Former Empress drafted various policies to solve this problem.”

It was amusing to talk about her past life with her own mouth, but Rianel explained calmly to avoid suspicion.

“However, there are limits to creating jobs through state-run projects.”

That’s because maintaining jobs created that way requires investing taxes.

Unfortunately, the Empire’s finances weren’t strong enough to handle that.

“So we created a tax reduction system.”

When the Former Empress died, most systems were nullified, but most tax laws remained as they were.

Laws that encouraged businesses with public value and reduced taxes in return were among them.

Cedric had abused the donation-in-kind law among them.

“The law the Prince used is the Special Tax Restriction Act.”

Special what?

The Ministry of Foreign Affairs people looked around at each other.

It was clearly Imperial language, but it sounded like a foreign language.

“What is that?”

“It’s a collective term for systems that reduce or deduct taxes for specific purposes.”

The Special Tax Act didn’t refer to just one system.

“Among them are reduction systems created to solve unemployment rates.”

If there were newly established companies or foreign companies wanting to relocate to the Empire, they would lower tax rates for several years.

“When new companies are created, that many more jobs are created too, aren’t they?”

Also, when foreign companies enter the Empire, technology comes in as well.

It was a way to cut several years’ worth of taxes and see long-term benefits.

“Prince Zarban said he owned a jewelry company, but essentially it’s a multinational trading company.”

While other princes who owned mines sold jewelry to nobles in their own countries, Zarban used his head to sell jewelry to foreign countries where it sold for higher prices and pocketed the profit margin.

“With the foreign currency obtained that way, he purchases materials lacking in the kingdom and again pockets the profit margin as revenue.”

Coming to trade medicinal herbs was just bait to establish trade relations.

After entering the country that way, his real purpose would have been to establish a subsidiary in the Empire.

‘Since medicinal herbs are monopolized by the Garta royal family, the Prince gains no benefit no matter how much is sold.’

But if it’s a trading company he owns, that’s different.

“The Prince will try to place the headquarters of his multinational corporation in the Empire.”

“Then…”

“The Prince’s company will be able to receive tax exemption benefits according to Imperial law.”

Up to this point, it would be a common corporate relocation, but the Prince went one step further.

“Next, he transfers the profits earned by each branch to headquarters, manipulates the books so the branches show losses, then reports the profits to the Empire with its low tax rates, using this method to save on taxes.”

Since she had already confirmed how the Prince saved on taxes in other countries, she could roughly predict how he would scheme in the Empire too.

Benny, who had been listening quietly, tilted her head.

“Then the countries where those branches were established wouldn’t just stand by, would they?”

“Of course they would protest.”

If money is earned in their countries but taxes are paid to another country, no country would be happy about it.

From the Empire’s perspective, it wasn’t a good thing either.

If other countries restrict trade, various problems arise, from price increases to reduction of related jobs.

“The losses the Empire would have to bear are too great to handle in exchange for receiving the Prince’s corporate taxes.”

The taxes the Prince would pay were a very small amount in the Empire’s overall finances.

Above all, the policy wasn’t drafted to provide a tax haven for the Prince.

“Still, couldn’t it solve the unemployment problem? Anyway, if the Prince comes, jobs will be created…”

“There won’t be much effect.”

Rianel calmly refuted.

The Prince was only selling jewelry already processed in the kingdom through branches in each country. While there weren’t absolutely no jobs derived from that, it was at a minimal level.

Those jobs were also filled with people from the kingdom, not the Empire, so there was no benefit to the Empire’s domestic demand.

“Above all, the company itself was created for the purpose of tax evasion.”

Rianel had thoroughly investigated the company and immediately noticed something suspicious.

“Compared to the dramatic increase in jewelry distribution in countries where the Prince’s company operates, the amount that passed through customs was less than half the distribution volume.”

Jewelry is classified as luxury goods in most countries and would be subject to tariffs.

The tariffs the Prince paid were ridiculously low.

The reason for the difference between customs records and market distribution volume was obvious.

“The Prince probably smuggled jewelry using diplomatic pouches.”

As Zarban traveled to various countries as a diplomat, he would have used the characteristic of diplomatic pouches not being searched to transport jewelry.

Of course, if he moved all jewelry through pouches, it would naturally arouse suspicion, so he would have transported some by ship.

Even so, the taxes evaded through smuggling were expected to be a considerable amount.

Above all.

‘Villains don’t commit devious acts just once.’

Since he wasn’t caught once, he couldn’t resist the temptation of ‘Hey, should I try it here too?’ and would get involved in crime.

Therefore, the Prince was highly likely to commit tax evasion in the Empire as well.

There was no reason to be played by this scheme.

“This negotiation is over.”

* * *

“Could you come this way?”

Zarban moved his steps without much suspicion at the knights’ words, but when he arrived at an interrogation room instead of a conference room, he looked around.

However, he soon wore a relaxed smile and crossed his arms.

“Suddenly the guest treatment has become harsh. Are the Empire’s circumstances not good?”

Zarban, who had been maintaining his composure, flinched when Pael, the Vice Minister of Foreign Affairs, brought up the two words ‘tax evasion.’

Soon the expression disappeared from his face.

As Zarban was a sociable person, he knew how to wear a diplomatic smile.

Just looking at his smile, he appeared more convincing than even Asil.

But as a corner of that smile crumbled, his real face was revealed.

Zarban, with the face of a prince that was cool, dry, and arrogant, lifted his chin.

“Oh my, how did you find out?”

He wasn’t wronged. There were things he had done.

He was just curious.

He had passed through various countries so far, but no one had caught his tax evasion charges this quickly.

“Tell me. Just how did you find out?”

“That’s…”

Pael hesitated for a moment, unable to answer.

Although he had heard the method from Rianel, the terminology was too difficult for him to remember.

‘Hey, what was that called?’

That thing with the special something or other.

Pael looked at the Ministry of Foreign Affairs people standing behind him and asked with lip movements, but.

‘We don’t know either?’

He only learned the fact that under a clueless vice minister were clueless subordinates.

These incompetent fools!

In the end, he deployed his ultimate technique, ‘Intimidation Tactic.’

“Are you doubting our advisor right now?”

“No, I wasn’t doubting, I was asking about the method—”

“Our advisor is someone who can see through the ways of heaven and the principles of earth from where she sits! She can easily see through petty tricks like that!”

Zarban opened his eyes wide and asked.

“Is that really true?”

Rianel, who had been standing at attention, felt ridiculous and shifted her weight to one leg.

‘Would that be the case?’

—————
This chapter was translated by Lunox Team. To support us and help keep this series going, visit our website: LunoxScans.com
—————