Goodbye “Made in Shanghai”?


The is only little news in the Western worlds’ media about a plan of the China government to stop production processes in the greater Shanghai region in the short- and/or middle-term views already.

And, guess what, You can easily imagine some of the basic thoughts, why such a scenario may become a real one in the coming years 2018 – 2025. Yes, it is the obvious tribute to the influence of pollution in mega million cities in the greater Shanghai area.

Exactly, some of your ideas have already come true: rapid changes can be seen in selected cities of the Jiangsu province. These are located close to the metropolis of Shanghai city, beside the Zhejiang province.


Taxi to a dark side?


Receiving a newsletter from a tax auditor, I was wondering how, and thus respectively why VIP might be under pressure to avoid paying income taxes in countries with high income tax ratios (here: countries in Central EU).

Starting from the provided sum of in total 6 million € – owed corportate taxes plus on top interest – I created an Excel scenario: let us start in year 2006 and end in 2013 (Q1). We push the stock market with risky investments and see us as a winner until year end 2011. Investments indirectly from Switzerland in Central Europe seemed to be more serious than puts and calls from Greece or Russia. In year 2006 we can create profits similar to 562 K€ corporate taxes to pay to … nobody. Correct? Not at all!

We calculate consequently that these data are hidden until year end 2012.

This was a professional error from the very beginning made by a VIP.

With the threat of a punishment in 2013 the results decreases the profitability: on top of all the taxes plus 6 per cent interest for each year undeclared revenues, these amounts add up to 334 K€ already for year 1.

In the following years the simulation estimates continuously higher corporate taxes – each result grows by +100 K€ – based on original investments, received by loans from private banking sectors: 15 million €.

In year 7 the income situation changes due to losses on the stock market.

This might have been a reason to re-think investments: why not withdraw it?

Thus the total income taxes – including personal income taxes – end up at round about 900 K€ EUR. Comparing to the initial income to declare this would be then a loss of round about 240 K€ in year 1.

Finally, at the end of the following decade all the losses together could be exceed more than 50 mio. €.


The speculation with private banks’ loans seldom works out for an investor.

Do not forget: a dramatic loss of your public image could lead you directly into prison for 10 years, too. The private banking sector risks as well its good reputation on former well developed consumer markets. Think, re-think!

As a result, such unsafe trips – here illegal speculation and hidden revenues, represent then a most likely free-of-charge Taxi to a dark side?!

But how can the investment rise from €15 mio. up to 50 mio. Euros?

How about the logistics? Do you need to use a truck for such special goods?