Not an accountant
But I think,
they are thinking that software devs should be consultants
( unless they are researches doing something very risky, something that may not work (from technical not business sense))
This way, they are an expense to the corporation, and each one of the consultants pay their own income tax.
In that way the corporation building software for sale/SaaS is treated the same way that a corporation that's buying and then renting out real-estate, for example.
Not an accountant But I think, they are thinking that software devs should be consultants ( unless they are researches doing something very risky, something that may not work (from technical not business sense))
This way, they are an expense to the corporation, and each one of the consultants pay their own income tax.
In that way the corporation building software for sale/SaaS is treated the same way that a corporation that's buying and then renting out real-estate, for example.