Quote:
Originally Posted by chemgear
In its report, the CCPA noted that 3G Capital has a track record of stripping assets from the companies it runs in order to fatten profit margins.
The report suggested the newly formed company could also shuffle numbers around to reduce its tax burden in Canada, a move that could cost governments $355 to $667 million in lost tax revenue.
|
I don't know how much stock I'd want to put in that article, considering these quotes:
1) No one strips out assets to fatten profit margins. You use assets to create a return, so stripping assets would simply reduce total profit in the long run
2) "Shuffle numbers around" has to be the most vague phrase of all time when considering international tax issues. How exactly would "shuffling the numbers" cost over half a billion in tax revenue? I doubt there is a concrete answer for that
The article takes the expected (layoffs after the merger of two large companies) and sensationalizes some finance points that the writer likely knows little about.