Andrew Flint takes a sideways look at the tax world
I have often heard it said that companies don't pay tax.
Of course this is not true. A company is a legal entity and as such can be taxed in the same way that other legal entities — like trusts for example — can be taxed. What the speaker is doing in a rather arch way is challenging you to show some disbelief so that the statement may be finessed into an explanation that companies being inanimate cannot suffer the pain of taxation. It is only people who do that.
So companies pay tax but they don't really pay tax. Not only that some economists are puzzled1 as to why companies...
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Andrew Flint takes a sideways look at the tax world
I have often heard it said that companies don't pay tax.
Of course this is not true. A company is a legal entity and as such can be taxed in the same way that other legal entities — like trusts for example — can be taxed. What the speaker is doing in a rather arch way is challenging you to show some disbelief so that the statement may be finessed into an explanation that companies being inanimate cannot suffer the pain of taxation. It is only people who do that.
So companies pay tax but they don't really pay tax. Not only that some economists are puzzled1 as to why companies...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
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