Comment by madaxe_again

When BMW sell you a car, and you buy it on finance (hire-purchase etc.) where they are lending you the money to buy it, they recognise the entire sale value of the car there and then. They even pay tax on the cash they don’t yet have in their pocket.

Meanwhile, you amortise it over years.

For some reason, nobody argues that this isn’t a real sale of a real car.

If it’s all just circular financing, then tax day will be the reveal, as there will simply be no money to pay the corporation tax on the profits.