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1redflag posted:Even worse, the interest they pay on the new debt counts against their (or at least partially reduces reduces) their tax liabilities. Even worse, they probably technically own the company that funded the loan through a complicated accounting shell-game (a la the panama papers) such that they are really just paying themselves to avoid tax liability. The free hand at work! I was under the impression that this is leaseback and is both legal and beneficial to a company. My understanding of the process is: Company A owns all the building they operate out of. Company A creates shell company B and sells the building to B for $1. Every month, A pays rent to B As long as the rent is a fair market rate for the area it's... immune to taxes or something so it's beneficial for company A to do this. I'm sure there are gaps in my understanding of this, so if anyone can fill them in, I'd appreciate it.
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Oct 26, 2020 18:32
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| # ¿ May 16, 2024 18:54 |
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