That's an incorrect understanding of the accounting. First of all it's not a tax deduction, it's a business expense which reduces profit. Second when you have

That's an incorrect understanding of the accounting. First of all it's not a tax deduction, it's a business expense which reduces profit. Second when you have a tax deduction only a portion (around 20%) of the amount actually reduces taxes, the rest is simply a loss for the business. > As a result the Australian tax payer effectively is paying Newscorp to continue existing By that logic the tax payer is paying the electric bill and janitorial services. That's really not how accounting works.