Interview Report Summary (Jun 24-Jun 30, 2006)
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Officers in HK: Mr. Jean Chouinard, Mr. Kim Le Van
Ms. Leslie Stoianov
Assets
Mortgage of property repaid. PA has an invoice but title deed not yet issued. The officer will check with higher authority first, but might still need the original title deed (will give a longer delay 90 days for the PA to get the title deed).
The bank deposit certificate (RMB 3M) expired.
The bank deposit was not updated. The PA declared during the interview he/she withdrew RMB 300,000 from bank account.
The officer only considered 90% of owner’s equity of the business. The spouse’s 10% was invested by the PA cannot be counted.
Documentation
The PA said earlier the employment contract was lost. The officer asked how the notary did the notarization and stated “is copy of the original”.
The file with additional documents was ready and covered all important aspects: finance, HR, etc.
Financial Report
The audit report (2005) showed that receivables were RMB 61M. The PA’s answers were not clear for the officer on this issue. The officer may ask for more documents.
The PA was not able to explain the figures in the audit reports, e.g. other investment (RMB 20M).
Management Experience
The officer questioned a very long time on the company operation and organization structure. The officer was suspicious that the PA’s brother (a shareholder) was in-charge of the finance not the PA him/herself.
The officer asked how the PA developed business relationship with an international customer. The PA declared during the interview the operations revenues was ore than RMB 40M per month but no notarized business contracts or proof of transfers of money by the international customer to the company (e.g. company account bank statement) was filed to BIQ.
The management experience was subject to high scrutiny. The officer questioned how come the PA is not the legal rep. (major shareholder). The PA could not show to the officer that he signed the bank authorizations (e.g. bank cheques) on behalf of the company.
Management Experience (cont’d)
The PA has been running the company since 2003. However, it was confirmed in writing in early 2005 because the GM did not want to make it official too soon. The PA was prepared and was able to talk as much as possible and give details on every aspect about his/her managerial duties and the company. The officer accepted the application in about 45 minutes.
The officer asked to see documentation, e.g. business contracts, accounting receipts approved showing the PA is managing the company. The PA is legal rep and shareholder (34% shares).
Proof of Income
The officer asked if PA have financial statements given that the PA’s commission based on 30% of gross profit of the company.
The officer was concerned that the cash in bank account declared in the update PNW was higher than the revenues received (notably dividends of RMB 1.8M from the current business). The officer wanted to see personal bank history records (last 3 years) to reflect roughly the deposits of salaries and dividends. Proof of payments of bonuses, roughly RMB 798,000 according to the officer’s calculation (2000-2004) was asked by the officer.
The proof (bonuses received) of source of investment RMB 1M in the current business was all in CHINESE!
The PA claimed that he/she received RMB 8.1M during the chengbao period. The officer said “…… there is no document supporting your file. Your whole file is missing.” No evidence of proof of income, no business license to prove the company had ever existed, not sure if the PA really received the money. The officer had serious doubt about the accumulation of funds.
When the PA worked for a state-owned and earned RMB 4.7M (1997-2000), he/she provided proof of revenue, e.g. audit reports, some bonus receipts, copy of business license.
The officer did not spend a lot of time on period when the PA earned less money (1983-1994 RMB39,600, 1994-1995 RMB 2000 per month). However, the focus was when PA earned RMB 4.1M during the chengbao and the officer asked to see evidence to show the PA received the money (only audit report shown). The officer judged that since the chengbao period is recent, the PA should be able to get bank history record. The officer needs essential evidence.
Financial statement showed a non-business income owing to sale of a piece of land owned by the business. The officer might ask for old title deed.
Tax (main focus on Enterprise Income Tax – EIT)
The tax receipts/certificate and financial statements were convincing and well prepared by the CPA according to the officer.
The PA said the EIT is 33% and provided 1-2 tax receipts of very small amount (the audit report showed million RMB). This officer did not insist.
Misc.
The general attitude of the PA, his/her academic background in the field helped to reassure the officer.
The officer said he/she will, without seeing the marks sheet, recognize only 1 year of study (the PA studied a part-time diploma 2000-2002). The lawyer recommended to stop arguing and to avoid upsetting the officer more.
The translator said she/he had trouble understanding the PA’s accent.
VERY IMPORTANT: The officer said he/she didn’t receive the additional documents before the interview. The officer said the interview will be postponed if it happens again. The immigration consultant must make sure to send all the additional documents before the interview at least 10 days.
The officer said it will be a difficult interview (as a joke) since all of us have a law background. It’s quite nice seeing the experimented officer having a good time. It helped the PA a lot.
The BIQ officer has information that the PA is still he president and GM of the company that he/she previously worked (1994-1995). The PA denied. The officer will ask the BI to carry out more investigation. It might constitute a false declaration if BIQ can prove the PA is active in another company.
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