Business/economic illiteracy
May. 16th, 2011 07:30 pm![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
twovectorsChannel 4 news just really annoyed me with a piece on Boots - paying little tax on a large operating profit.
But they paid lots of interest, and deducted this for tax. Now in this case the interest is a cost of the acquisition, which I am less sympathetic with. But most interest is a legitimate business expense - you needed money to make something, you borrowed it, the cost reduces your profits (but notably increases someone else's - the lenders). This it seems to me is a legitimate tax deductible expense, in the same way that rent is a deductible expense.
The whole article seemed to me to show a lamentable lack of business knowledge. It makes me ashamed to call myself left wing to see such ignorant comment calling itself reporting.
I find such obvious bias undermines everything it has to say.
And then they followed it up with a bit on Puma, who, very commendably, started to publish an environmental impact assessment of the whole supply chain. C4's response - isn't your whole business damaging the environment by encouraging consumerism?
I find it hard to counter the right's argument of bias in the broadcast media with this to defend. Leave such blatant bias for Fox news - C4 news should be above this!
But they paid lots of interest, and deducted this for tax. Now in this case the interest is a cost of the acquisition, which I am less sympathetic with. But most interest is a legitimate business expense - you needed money to make something, you borrowed it, the cost reduces your profits (but notably increases someone else's - the lenders). This it seems to me is a legitimate tax deductible expense, in the same way that rent is a deductible expense.
The whole article seemed to me to show a lamentable lack of business knowledge. It makes me ashamed to call myself left wing to see such ignorant comment calling itself reporting.
I find such obvious bias undermines everything it has to say.
And then they followed it up with a bit on Puma, who, very commendably, started to publish an environmental impact assessment of the whole supply chain. C4's response - isn't your whole business damaging the environment by encouraging consumerism?
I find it hard to counter the right's argument of bias in the broadcast media with this to defend. Leave such blatant bias for Fox news - C4 news should be above this!
