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If they don't use profits as part of their expansion plans, then how do they expand year-over-year without spending more money than the year before? If they spe
by talmand 13y ago
If they don't use profits as part of their expansion plans, then how do they expand year-over-year without spending more money than the year before? If they spend more money than the year before then where did the extra money come from if not from the previous year's profits?
- Nursie 13y agoMake money, spend on expansion, staff, research etc. before end of tax year, it's not taxable profit, unless I've seriously missed something. --edit-- this is exactly how amazon operated for a long time. They paid next to no tax because they reinvested everything. Tax on profit does not tax business expansion, it taxes retained profit at the end of the tax period.