Anti-tax evasion, anti-money laundering, anti-corruption digital yuan sweeps up the drastic changes are brewing

What happens when all your money becomes a string of codes?

This bridge that sounds like scam news is actually what is happening in the real world – digital renminbi.

Recently, news about the launch of the digital renminbi app and WeChat’s support for the digital renminbi has quietly swept through.

And when the digital renminbi really enters people’s daily life, everything that happens around “money” is undergoing unprecedented drastic changes. In particular, money laundering, corruption, and tax evasion by entertainment stars and live broadcasters have since been ripped off. The flow of all funds and money in society will become unreservedly transparent.

money into code

An APP called “Digital RMB (Pilot Version)” occupies almost all application markets, which will be the application carrier of China’s digital currency.

The full English name of China’s digital currency is: DC/EP (Digital Currency Electronic Payment), that is, digital currency and electronic payment tools. The People’s Bank of China combines digital currency and electronic payment tools with the goal of replacing a portion of cash.

This is not a new thing. In 2014, China set up a special digital currency research project group. Today, China may now be the only country in the world that can directly shop with the central bank’s digital currency.

At present, the digital renminbi can be sold in Beijing, Shanghai, Shenzhen, Chengdu, Xiongan, Suzhou, Changsha, Dalian, Qingdao, Xiongan New Area, Zhangjiakou, Hainan Province (Haikou, Sanya, Sansha, Danzhou, Wuzhishan, Wenchang, Qiong Hai, Wanning, Dongfang) and other pilot areas. In these areas, as long as you download the app and register, you can use digital RMB to order takeaways on the Meituan App and Meituan Takeaway App, or shop on and Taobao, or even buy breakfast at street stalls through WeChat Pay.

Simply put, the People’s Bank of China digital currency can be regarded as digital RMB cash.

There is no need for a bank account or a payment account to use digital renminbi, just like using paper money, as long as the user has a digital currency wallet. Moreover, different from the use of electronic payment forms such as WeChat and Alipay, the use of digital currency does not require a network or even a mobile phone signal. As long as the mobile phone has electricity, the two mobile phones can “touch” to complete the payment.

Money has truly become a number in the wallet. But the digital renminbi does more than that.

The digital renminbi wallet adopts the design of classification and classification, and realizes “anonymity of small amount, traceability of large amount according to law”. An anonymous wallet can be opened with only a mobile phone number, which is suitable for small transactions. If you want to make large payments, you can do a wallet upgrade.

But for supervision, the significance is more than that. The most important thing is that the money in your wallet has become completely transparent.

Manage all the money?

In November 2021, the case of Zhu Moumou, the former director of a highway management office in Heilongjiang Province, was accused of embezzling 20 million yuan and taking 6 million yuan in bribes, which caused a lot of discussion.

At that time, Zhu’s defense lawyer said that Zhu voluntarily pleaded guilty and accepted punishment, with a sincere attitude of repentance, and the return of stolen goods amounted to more than 80 million yuan, far exceeding the amount charged, and he should be given a lighter punishment.

In the end, Zhu’s “actively returning stolen goods” really became one of the reasons for his lighter punishment.

Since then, the discussion about this matter has been very hot. According to the judgment documents, Zhu used his corruption proceeds for investment, wealth management, real estate purchase and personal consumption.

In other words, the money was invested by him with the stolen money. However, legally speaking, the income derived from using the illegal income for investment and property purchase is still illegal income. For example, investing in the stock market has increased many times, or using it to buy a house has increased many times. This kind of income is a typical illegal income. Once the crime is established, these value-added parts will also be recovered.

No one can profit from illegal acts, this is the basic legal principle. It is of course a good thing for a corrupt person to take the initiative to explain the stolen money, but if he refuses to admit it, wouldn’t the 60 million stolen money become his possessions?

The anonymity of cash also provides a hotbed for many gray transactions and even illegal crimes. In reality, it is also difficult to strictly distinguish which money is criminal income and which is legal income, and can often only be determined in terms of the total amount.

For example, a thief stole 10,000 yuan, and he also had 10,000 yuan in his own bank account. After committing the theft, he invested 10,000 yuan in the stock market, and made another 10,000 yuan before he was caught. At this time, it is difficult to determine that the 10,000 yuan earned from the stock market is illegal income. The extra 10,000 yuan will be recovered.

But in the era of digital renminbi, the flow of money has nowhere to hide.

All big data and payments go directly through the central bank, and each transaction naturally has its own lifetime ID (time stamp).

You must know that for a long time, even the stolen money can be laundered in many ways, and this not only makes a lot of black money appear in the sun, but also raises many so-called “big men”. Specializing in money laundering crimes.

Make money difficult to launder

On the afternoon of November 28 last year, the Judicial Police Bureau of the Macao SAR Government released information that 11 persons involved in the case, including Zhou Zhuohua, were transferred to the procuratorate for investigation on charges of criminal group, illegal gambling operation and money laundering. Among them, Zhou Zhuohua was taken into custody for compulsory measures.

Zhou Zhuohua has many labels, such as “Asia’s new gambling king”, “film and television boss”, “real estate company owner”, etc., each of which is a well-known title.

And “Ximihua” is one of his most famous nicknames. It is said that it is because he looks similar to the male protagonist “Ximihua” in the Hong Kong drama “City Story” filmed in 1986, but later, Xi Mihua really started to wash “rice”.

In 1998, Zhou Zhuohua obtained an online gaming license from the Philippines and began to operate the Sun City gaming website, providing all kinds of gambling.

“Economic Information Daily” once reported that Suncity Group’s online gambling platform business in the Philippines and Cambodia has not only penetrated deeply into the mainland, but the annual bet amount in the mainland is more than one trillion yuan.

What is the concept of 1000 billion?

This is equal to 10,000 Wang Jianlin’s small goals, one-tenth of China’s GDP in 2014, nearly twice the total lottery revenue in China in 2018, and more than 99.87% of the country’s listed companies’ market value…

Ximihua makes tens of billions of dollars every year from this, which is an astronomical figure. We can make a comparison. Golden Horn Finance has checked the current financial reports of 4,714 listed companies across the country. As of the third quarterly report of 2021, only 63 companies have a profit of more than 10 billion. In other words, Xi Mihua’s one-year profit exceeds 98.6% of A shares. Listed company.

And these funds flow overseas through underground banks.

The term money laundering comes from the United States and is literally translated from the English “money laundering”. It originally referred to a restaurant owner washing frequently used dirty coins with bleach.

At that time, there was a criminal group called Carpenter in Chicago, with a lot of cash, but they were afraid to deposit it in the bank. The Group CFO purchased a coin-operated washing machine and started the laundry business. Add the stolen money to the tax office every night when calculating your income for the day. This deducts the tax due and the remaining illegal money becomes legal income.

Today, the amount of “money laundering” in the world is about 3 trillion US dollars every year, which is the third largest “commercial activity” after foreign exchange and oil.

These money flowing abroad not only caused personal losses to ordinary people, but also caused harm to the entire country.

We generally refer to the outflow of funds, which specifically refers to the transfer of illegal income abroad in violation of laws and regulations. The outflow of funds is usually accompanied by the transformation of state-owned property into public-private, resulting in a serious loss of state-owned assets, as well as various criminal activities such as smuggling, tax evasion, and defrauding national foreign exchange.

Funds going from domestic to overseas must be accompanied by foreign exchange, that is to say, the export of domestic renminbi must be exchanged for foreign currency.

my country is a country that implements foreign exchange control. Generally speaking, foreign capital needs to convert foreign currency into RMB when entering the country, which is equivalent to the state using RMB to exchange foreign currencies such as US dollars in the hands of foreign investors.

The more foreign capital that comes in, the more foreign exchange reserves will rise. On the contrary, when the RMB flows out, the state will use the foreign exchange reserves to exchange the RMB back from the holders of the currency, so that the foreign exchange reserves will be reduced accordingly.

Under normal circumstances, the state can manage foreign exchange reserves by controlling the inflow and outflow of RMB. However, if Ximihua’s tens of billions or even trillions of funds flow overseas through underground banks, it is conceivable that the country’s foreign exchange reserves will be greatly lost.

This is equivalent to plucking domestic wool, or even uprooting it. In severe cases, it will endanger national economic security.

For example, the outflow of tens of billions or even trillions of funds in Xiimihua’s gambling system will reduce the total amount of funds in the domestic financial system, and the central bank must refer to the bank’s deposit reserve ratio and total deposit funds when issuing currency. .

When the bank’s total deposit funds decline, the currency that the central bank can issue may be reduced, and the state’s adjustment to the monetary system and the financial system is in danger of failure.

If all physical currencies can be converted into digital renminbi, the central bank will be able to control the flow and direction of currency more precisely. How much RMB is flowing in and out, and where are they going, these information that required energy to be counted in the past financial supervision may be intuitively presented in front of the regulatory authorities.

Money laundering will become more difficult.

Xi Mihua may no longer have to worry about this problem, but domestic stars may have to worry about it.

Tax evasion? almost no chance

In 2018, Fan Bingbing’s “Yin-Yang Contract” incident led to a tax evasion scandal, which led to a major reshuffle in the entertainment industry. In the end, Fan Bingbing paid 880 million in taxes and fines, and even ruined his stardom.

In the next two years, the whole country began to strictly investigate the “tax evasion and tax evasion” in the film and television industry, requiring that from October 10, 2018, local tax authorities should notify local film and television production companies, brokerage companies, performing arts companies, star studios and other film and television industry companies. and high-income film and television practitioners, in accordance with the relevant provisions of the Tax Collection and Administration Law and its implementation rules, self-inspection and self-correction of tax declarations since 2016.

By the end of 2018, the film and television industry had self-examined and declared tax rebates as high as 11.747 billion yuan.

But it is unimaginable that the “tax evasion and tax evasion” drama in the film and television industry will reach a climax in 2021, and it will also set fire to the live broadcast and goods circle.

In October 2021, the Shanghai Municipal Taxation Bureau chased Zheng Shuang for taxes, levied overdue fines and imposed fines totaling 299 million yuan.

The reason is that during the filming of “A Chinese Ghost Story”, Zheng Shuang agreed with the producer of 160 million yuan in remuneration, and actually received 156 million yuan. He did not file tax returns according to the law. The tax evasion amounted to 43.027 million yuan, and the other underpaid taxes were 1617.78 yuan. million.

The specific method is to split the 160 million yuan into two parts, 48 ​​million yuan and 112 million yuan, and for the 112 million yuan (actually obtained 108 million yuan) part, the two parties agreed that the producer would control Zheng Shuang’s actual control company for the Payment in the form of “capital increase”.

At the same time, it was found that Zheng Shuang had another income of 35.07 million yuan from other performing arts, 2.2426 million yuan of tax evasion, and 10.3429 million yuan of other underpaid taxes. In total, from 2019 to 2020, Zheng Shuang failed to declare personal income of 191 million yuan according to law, evaded taxes of 45.2696 million yuan, and underpaid other taxes of 26.5207 million yuan.

But Zheng Shuang’s tax payment is not the end of the story, but it has pushed the tide of tax repayment to a climax.

A month later, Wang Sicong’s ex-girlfriend Zhu Chenhui (Sydney) and another anchor, Lin Shanshan, were also charged with tax, imposed a late fee and fined 65.5531 million yuan and 27.6725 million yuan respectively for suspected tax evasion. .

Another month, at 4 pm on December 20, 2021, the anchor Wei Ya, who is on an equal footing with Li Jiaqi, was found to be punished for tax evasion and tax evasion.

The Hangzhou Municipal Taxation Bureau Inspection Bureau said that from 2019 to 2020, Wei Ya evaded 643 million yuan in taxes and underpaid 60 million yuan in taxes by concealing personal income and making false declarations of the nature of business conversion income. Therefore, a tax administrative penalty decision was made on Huang Wei (Weiya’s real name) in accordance with the law.

In fact, as the regulatory authorities pay more attention to the tax issues of celebrities and internet celebrities, the countermeasures of celebrities and internet celebrities have become more subtle. Yin-yang contracts, concealment or transfer of income, and splitting of remuneration into multiple incomes are various, and Fan Bingbing has to say something clever when he sees it.

At the beginning of the design of the digital renminbi, it was aimed at plugging the gaps in the current currency system.

At the 2021 China Development High-level Forum, Mu Changchun, director of the Digital Currency Research Institute of the People’s Bank of China, said that the digital renminbi is a legal currency in digital form, and “designs that cannot meet anti-money laundering, anti-terrorist financing, anti-tax evasion, etc. will be rejected by one vote. .”

The accelerated landing of the digital renminbi seems to just turn the banknotes in people’s hands into codes, but the hidden meaning behind the codes will be gradually revealed in a longer period of time.

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