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Joined 3 months ago
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Cake day: June 14th, 2024

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  • Because doing crap like this is how the rich avoid paying their fair share of taxes.

    And yes running it a loss is a legitimate thing:

    1. Open up subsidiary company that you know/think will operate at a loss or near loss
    2. Use the negative profit to offset positive profit from another subsidiary (main operations for example)
    3. Parent company now has lower NET Profit!! Thus paying less in taxes since your “income” is now much lower than it was before.
    4. Laugh at the taxman because you just got away with stealing from your countrymen

    That’s just an off the cuff example, obviously it can be a little more complicated depending on the jurisdiction