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Boss owns two companies. Staff at company A have negotiated a profit share / performance bonus. Boss directs company A to provide services “below cost” to com
by danielheath 6y ago
Boss owns two companies.
Staff at company A have negotiated a profit share / performance bonus.
Boss directs company A to provide services “below cost” to company B. Company A now has no profit to share; it has been funnelled elsewhere to avoid paying the staff their bonus.
- tinix 6y agoThis is a dirty tactic, but I've seen it used... a lot. It has slimy tax advantages too, for the company. If you're getting profit sharing, you should be able to see the books, and have controlling shares, too... IMO.