Re:Obama presses to end corporate trick for evading taxes
by to3m on Saturday July 26, 2014 @08:07AM
(#8089530)
There are also business rates. (For non-UK readers: property tax on commercial property.)
I'm surprised at the implication that because of all this shit they're spending money on - shops, employees, expansion, etc. - they must be profitable. (Maybe they are, I don't know. Maybe they are stashing it away elsewhere. It would certainly make sense for them to do that.) But it doesn't automatically follow, because profit is what you have left after you've paid for all this stuff. All this expenditure is in fact bad for the bottom line.
You can't even argue that the money has to come from income, and that therefore the very fact of their profitless expansion is evidence of sharp practice. People have been known to lend out money! Sometimes they'll do it merely in exchange for a share in your business. If they like the cut of your jib, you don't even have to be making money yourself in the first place.
...which is why I'm sort of surprised to see this line of thought implied on HN ;)
I'm surprised at the implication that because of all this shit they're spending money on - shops, employees, expansion, etc. - they must be profitable. (Maybe they are, I don't know. Maybe they are stashing it away elsewhere. It would certainly make sense for them to do that.) But it doesn't automatically follow, because profit is what you have left after you've paid for all this stuff. All this expenditure is in fact bad for the bottom line.
You can't even argue that the money has to come from income, and that therefore the very fact of their profitless expansion is evidence of sharp practice. People have been known to lend out money! Sometimes they'll do it merely in exchange for a share in your business. If they like the cut of your jib, you don't even have to be making money yourself in the first place.
...which is why I'm sort of surprised to see this line of thought implied on HN ;)