Wednesday, July 04, 2007

Money for old rope, pt94. Stealing Corporation Tax

This Citizen has a capitalist streak meaning that he quite fancies the idea of making large amounts of money. His chosen method is through the creation of innovative software that enables organisations to conduct their existing business in more efficient manner. He is dissapointed to learn that there is a far easier way to make a big pile of cash.

1. Pick a large, reasonably profitable company
2. Borrow a very large amount of money in order to buy said company.
3. Buy the company, take a little cut for yourself just a few million or so for your "profesional services".
4. Transfer your newly aquired debts to your newly aquired company.
5. Offset the the interest payments against your new company's profits
6. Voila, with interest payments reducing your company's profits, the company pays far less corporation tax. Your creditors get their interest, you keep your fat bonus and the Treasury is left feeling empty and hollow.

Inspired by Pemira

citizenandreas [at] slick47 [dot] co [dot] uk

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