PPRuNe Forums - View Single Post - The Virgin Strike Thread II
View Single Post
Old 6th Jan 2008, 20:09
  #468 (permalink)  
scoobydooo
 
Join Date: Aug 2007
Location: uk
Posts: 208
Likes: 0
Received 0 Likes on 0 Posts
vs_lhr

I think scorpion is just highlighting what is a very common business practise. If I have "UK LTD A" with many employees and "Overseas LTD B". "Overseas Ltd B" charges "Uk Ltd A" for services rendered, however because "Overseas Ltd B" is the best in its field in the whole world its services come at a premium in comparison to any other and as such considerably more expensive than "Different Overseas Ltd" or "Different UK Ltd B".

It is a common practise used and a legal way (just) to reduce the profit made by one company "on paper". There is a difference between tax evasion and tax avoidance, the former being what I think scorpion is alluding too, nothing dodgy, nothing illegal just that one way to reduce costs/tax.

Regards
scoobydooo is offline