4 ms·
I believe there’s some tax advantage for them. Possibly they can claim a tax deduction of some kind on the debt interest. And of course this way not only do the
by erentz 9y ago
I believe there’s some tax advantage for them. Possibly they can claim a tax deduction of some kind on the debt interest. And of course this way not only do they get that but they avoid paying any taxes on the profits they’ve funneled overseas.
(I am not an accountant so fully prepared to be told I am well wrong.)
- ash_gti 9y agoI also think most companies usually invest their additional cash into things that they think will grow faster than their debt interest. Long term it makes more sense to grow a part of their company that will have a larger return investment than being debt free.