In the context of competition, tax exemptions are de facto subsidies. If my company has an ETR of 10% and yours would be the same if it weren't for the 50% redu

In the context of competition, tax exemptions are de facto subsidies. If my company has an ETR of 10% and yours would be the same if it weren't for the 50% reduction you got, you can underprice me by a few points and still have a higher profit all other things being equal.