Chapter 1992 - New Australian Tricks (Continued Again)
"Wonderful, wonderful—of course it makes sense. A veritable God of Wealth! So much better than the Health Committee, which is both stingy and endlessly troublesome."
"And it's not just your Bureau. I've heard Chief Zheng—you know, the one who oversees Physics and Chemistry in Lingao? No, wait, the Industrial and Commercial Federation. Anyway, they're involved, along with the Customs offices at Guangzhou and Xiangshan Ao wharves, even the Health Committee..."
The "Collection by Agent / Entrusted Collection" plan that Zhang Xiaoqi had originally devised successfully extricated the Finance and Tax Bureau from the pitfalls of tax farming. However, implementation stalled until the second quarter, when it finally began rolling out in phases. Part of this delay stemmed from the need to refine the plan itself, but the larger issue was what their investigations uncovered: Guangzhou's actual situation proved even worse than their most pessimistic projections. After assessing both the quantity and quality of their naturalized cadres, the Finance and Tax Bureau's trio of leaders settled on a guiding principle: "Grasp the Big, Grasp the Consolidated, Grasp the Easy."
"Grasping the Big" meant targeting the city's major households as primary collection subjects. "Grasping the Consolidated" involved levying substantial taxes directly on bulk goods through the new wholesale markets that had formed under government organization after eliminating the yahang—the traditional broker and commission agencies. This portion of tax collection was entrusted to Zheng Shangjie's Industrial and Commercial Federation. The Finance and Tax Bureau stationed two rotating officials at each market to handle management, supervision, and receive complaints. Similarly, Customs collected taxes on export goods as an authorized agent. At year's end, the Finance and Tax Bureau would allocate handling fees equal to five percent of total entrusted collections from its own operating funds to each partnering agency.
For taxpayers assessed under the fixed-quota system, the principle of "Grasping the Easy" divided them into two categories. Level Two fixed-quota taxpayers essentially constituted the middle class—neither major households nor small operators. These merchants typically ran single-industry businesses and possessed considerably less overall strength than true commercial magnates. They had either no independent accounting capability or only rudimentary skills, but generally maintained stable operating income and held fixed assets of meaningful value. Given these circumstances, Wang Qiyi recommended they be assessed fixed quotas separately for Business Tax and Property Tax, with mandatory self-declaration and payment at the tax hall. This arrangement would facilitate the Finance and Tax Bureau's daily oversight.
Level One taxpayers represented the commercial world's bottom stratum. Their operating income barely sustained a livelihood, and their fixed assets hardly warranted mention—yet their numbers were vast. Like the "individual households" and "husband-and-wife shops" of later generations, such establishments existed in constant flux, opening and closing with alarming frequency. Tracking their specific business conditions was challenging enough; determining their exact quantity verged on impossible.
In Wang Qiyi's view, these small fry served primarily to address social problems. The cost of collecting taxes from them far exceeded any revenue gained—"scraping meat from fly legs" yielded nothing but losses.
However, most Senators—including Liu Xiang—maintained that taxation was never purely a monetary matter. It represented state sovereignty itself. To whom one paid taxes was a fundamental question touching on popular loyalty and political legitimacy. A compromise emerged: Level One taxpayers would pay only symbolic amounts.
According to the Bureau leadership's deliberations, this tax rate should be set so low as to constitute a negligible burden, encouraging taxpayer households to pay proactively while minimizing inspection and collection costs.
Tax quotas were standardized by industry. Each trade was assigned a total quota encompassing all applicable taxes—in practice, only Business Tax and Property Tax. All Level One merchants in a given industry paid according to this uniform quota. The amount was calculated to fall slightly below the industry's average revenue and total assets. For example, catering establishments like Dong's Shop faced an annual quota of just one yuan—equivalent to a Guangzhou civil servant's monthly base salary. The Industrial and Commercial Federation and Finance and Tax Bureau would then jointly designate one "Agent Collection and Payment Taxpayer" per industry, responsible for collecting taxes from fellow merchants in their trade.
Fixed-quota taxpayers who had already paid taxes at wholesale markets could claim deductions. The basic principle operated as follows: if their wholesale-level turnover did not exceed the upper limit for their current grade, they could apply for tax deduction or refund under a "Levy First, Refund Later" arrangement. After paying the current period's fixed-quota tax, they would present the agent collection certificate issued by the wholesale market management office to the Finance and Tax Bureau. Given the high interbank lending rates in this era, Zhang Xiaoqi stipulated that the Tax Collection Hall must complete audits and issue refunds within three days—not three working days—of receiving applications. Alternatively, with the taxpayer's consent, the amount could be deducted from the following period's tax. For taxpayers whose wholesale turnover exceeded the upper limit for their current grade, the Tax Assessment Division and Market Management Office would conduct joint on-site inspections. Two consecutive periods of excess would trigger an upward grade adjustment or a change in collection method.
Li Ziyu listened to Zeng Juan's ceaseless explanations with a smile fixed on his face, even as a chill crept upward from the soles of his feet. Since joining the police force—from walking beats to solving cases to advanced studies in Lingao—his most profound impression had been the Senate's seeming omnipotence. This power manifested not merely in their "strange techniques and excessive ingenuity"—that was almost trivial. What truly struck him was their insatiable desire to control everything. More importantly, they didn't simply harbor such desires; they possessed endless "strategies" to fulfill them. Before the Senate, no situation seemed beyond their capacity to manage.
As one of the Senate's claws and teeth, he felt perpetual pride in serving this system—even as he often found himself trembling with involuntary fear.
The matter at Zhang Yu's company proved to be "routine business." Zhang Yu therefore maintained perfect composure throughout the visit from his two "old friends." From start to finish, not a single "brother" or "old friend" passed his lips—only the polite forms of address customarily used when greeting public servants. Nor did he engage in any private conversation; whatever needed saying had been said days ago. With matters now clear in his mind, Zhang Yu felt no fear. Following Zeng Juan's prior instructions, he answered each question directly and honestly. The procedures concluded quickly.
At the end, he nearly asked the question burning in his chest: "What about the land contract?" This remained his deepest worry. If the transaction were voided entirely, he would need to find new land—hardly something accomplishable in two or three days. Meanwhile, the machines he'd ordered from Lingao waited for no one. Equipment required installation and debugging; workers required training. Though the delivery dates on his Joint Logistics orders were generous, delays meant compensation payments.
Any breakdown in any link could spell bankruptcy. Yet after much hesitation, he held his tongue. Zeng Juan hadn't explained this matter—probably because arrangements were already in place. Asking too many questions might only invite trouble. With Ah Juan looking after things, he trusted everything would work out.
Bright lights filled the Deputy Director's Office at the Guangzhou Finance and Tax Bureau. Wang Qiyi was reviewing a newly delivered investigation report on the "custom industry," preparing for the upcoming "Flower Donation" collection.
"Report!"
"Enter! ...Ah, Team Leader Zeng."
"Report, Director Wang. The matter you assigned has been handled. Zhang Company agreed to void the contract and pay supplemental tax upon re-signing. The supplemental contracts that Old Shop Zhang signed with other merchants have also been voided as notified."
"I see. Did they express any... discontent?"
Though Zhang Yu's family weren't naturalized citizens within the system, they had been heavily promoted by Senator Hong and established as model "Collaborators" by the Guangzhou Industrial and Commercial Federation. Director Wang still needed to handle execution with appropriate care.
"None at all. Zhang Yu and his father were completely cooperative, fully supporting our Bureau's work. They only wanted to know when they could re-sign the contract. Zhang Company has ordered a large shipment of equipment and machinery from Lingao; without land, they cannot begin factory construction. They've also accepted substantial orders from Joint Logistics..."
"A reasonable concern. He must have considerable capital tied up in this—the loan interest alone must be painful. But there's no need to worry. We won't touch Noble Gathering for now. After Team Leader Yao delivers the Punishment Decision Notification today, we'll give him a few more days of peace. We're fishing for bigger prey. Notify Zhang Company to use these days to re-sign the contract and complete tax payment. The land transaction remains valid."
"Understood!"
"Very well. Dismissed. Remember to write up today's activities in your log."
"Report!"
"Enter."
"Report, Chief. Today's Punishment Notification for Noble Gathering was delivered successfully. No obstruction encountered. The involved party was fully cooperative. Report concluded!"
"Ahem... Team Leader Yao, you don't need to be quite so formal. Relax a little."
"Yes, sir!"
"..."
"Chief Wang, there's one additional matter I believe warrants reporting."
"Go ahead."
"On the way back today, Team Leader Tian from the Police Bureau—who accompanied me—mentioned that his family has distant connections to Shopkeeper Luo of Noble Gathering. He says Noble Gathering can't really be considered Luo family property at all. Old Master Luo had subordinated himself to the Liang family while alive. The current heir, Luo Zhixiang, is nothing but a wastrel. Noble Gathering's survival to this day depends entirely on Advisor Liao's management."
"So this Advisor Liao must be quite the honest and capable fellow."
"That's what's strange. Advisor Liao isn't an old hand at Noble Gathering. He appeared at the Luo household suddenly, years ago, shortly after Old Master Luo passed away. Yet from the moment he arrived, his word became law. To call him the true shopkeeper would be no exaggeration."
"Interesting. Most interesting." Wang Qiyi rose from behind his desk and strolled casually toward Yao Yulan's side.
"I sense this Advisor Liao may have... quite a story behind him." Wang Qiyi had drawn uncomfortably close. Yao Yulan could almost hear his heartbeat. She dared not look up, keeping her gaze fixed straight ahead. Her eyes fell upon Wang Qiyi's collar. For reasons she couldn't explain, her face began to burn, and her words came out halting.
"Mm. For a Political Security cadre, your judgment shows considerable professional instinct. We shall see how this develops." Wang Qiyi's tone was perfectly neutral as he stepped away from Yao Yulan. Just as she was about to exhale in relief, she felt three measured pats on her shoulder—neither light nor heavy.
"Regarding my eldest daughter's matter—thank you for your assistance." Wang Qiyi had leaned down unexpectedly from behind, his whisper brushing against her ear. "But in future, focus on doing your own job well first."
"Yes! For the Senate—I mean, yes, Chief Wang!"
"Very well. Dismissed. Remember to write your work log."
After seeing Yao Yulan out, Wang Qiyi slowly paced back behind his desk and dropped heavily into his chair. He raised his left hand toward the sunlight, clenched his fist, released it, clenched again, released. Then, suddenly, he slammed his palm against the desk three times, hard.
"Pat, pat, pat—you patted her. What the hell were you thinking?"