Re:Biggest companies pay the least tax, shows new research
by CydeWeys on Sunday April 05, 2020 @04:07PM
(#22788228)
No, I wasn't thinking of "Hollywood accounting". I was thinking of the kinds of ways of "not making money" that truly do result in corporation-wide losses on paper, reliably, year after year, despite the fact that such claims are clearly false on their face because if a company was actually incurring those losses it would go bankrupt instead of expanding (which it is). One good example of such a way to manufacture a paper loss so as to avoid paying taxes, while in actuality the business's value continues to grow, is depreciation.
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Re:Biggest companies pay the least tax, shows new research
by WalterBright on Sunday April 05, 2020 @04:16PM
(#22788320)
Ok, name one such company, read its Annual Report, and present your evidence.
> depreciation
Depreciation allowances are based on what was paid for the item, not its value. If it is sold for more than was paid for it, the difference is taxable income.
Value not realized is also not taxable income.
I took a class in basic business accounting one summer. It was time well invested. I recommend it. (Though that doesn't make me a qualified accountant, I still use a CPA for the company books and rely on his advice. I pay no attention to what journalists say about accounting, they know as much about it as about Quantum Mechanics.)