Tax laws are usually made to make it easy to collect, hard to dodge taxes.
If companies pay all the tax I could create a company, invoice my current employer, pay myself a salary that is equal to the entire profit margin. There is nothing left to tax.
You could try to patch the loophole but then you’ll break down something else.
That sounds backwards to me. If companies are paying all the taxes, why would you insert a second company into the chain? Then both companies would be paying a tax portion, and your salary would be that much less than if you just had a job.
Or were you thinking that you could bamboozle the government out of the tax revenue by saying “Oops, no profit! Salaries cost too much!”? I don’t think that would work unless the entire structure was built with one directive in mind: “Reward Hollywood accounting”
Tax laws are usually made to make it easy to collect, hard to dodge taxes.
If companies pay all the tax I could create a company, invoice my current employer, pay myself a salary that is equal to the entire profit margin. There is nothing left to tax.
You could try to patch the loophole but then you’ll break down something else.
That sounds backwards to me. If companies are paying all the taxes, why would you insert a second company into the chain? Then both companies would be paying a tax portion, and your salary would be that much less than if you just had a job.
Or were you thinking that you could bamboozle the government out of the tax revenue by saying “Oops, no profit! Salaries cost too much!”? I don’t think that would work unless the entire structure was built with one directive in mind: “Reward Hollywood accounting”