Comment by madaxe_again
6 hours ago
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.
> Seven huge corporations recently announced that in 2024 they were allowed to collectively keep $1.4 billion in tax breaks from previous years that they had publicly admitted would likely be found illegal if investigated – all because the tax authorities were unable to identify and disallow them before the statute of limitations ran out.
https://itep.org/what-corporations-have-to-gain-from-the-gut...