Originally Posted by
BleedingOn
WHBM the £350-400 million that X-ray one refers to is not corporation tax but PAYE and NIC from the employees
The problem with "creative accounting" such as "expense to Virgin Islands", to dilute company profits and pay less Company tax, creates a problem when you ask for a loan.
Someone lending them money would want to do due diligence, and see if they will be viable to pay "our" money back again.
I am guessing who ever checked the company and asked them to make a new application for government funds, can't have been happy with what they saw.
I can set up a company, and turn around large amounts of money, and I can also spend on all kind of relevant business expenses, which benefits me so I pay less tax. However if I go to the bank, and show no profits, they will not give me a loan, just because I tell them I can pay all my staff, but over a decade I have made negative profit, they not going to be very convinced that I will be able to pay them back the loan I am applying for.