It's not clear to me which side of EBITDA we're arguing on, but as a generalized statement capital expenses for which you cannot claim a full immediate deductio

It's not clear to me which side of EBITDA we're arguing on, but as a generalized statement capital expenses for which you cannot claim a full immediate deduction could put you in debt -- the full tax claim is deferred over the life of the asset. You could earn $10,000 of revenue -- spend $10,000 on a server and then still owe some 20-30% income tax because you cannot claim the full $10,000 deduction in that first year. For my server example that may be 3-4 years, some plant and equipment can be much longer. This is also based on Australian tax, I assume it's similar elsewhere but don't know the intricacies.