Avoiding short-term, taxable profits, and seeking long-term capital growth is the best approach to growing private companies.
UK-based companies pay corporation tax on their taxable profits wherever they are made.
One idea that Mr Monti is keen on, however, is to harmonise the accounting methods used to calculate taxable profits.
When a business can't use up its losses by carrying them back, it carries them forward instead, offsetting future taxable profits.
The company calculates the profits, looks at the various allowances it can take and then pays tax on those taxable profits.
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Short-term, taxable profits with good dividends are a prerequisite of public life.
It is a single set of rules that companies operating within the EU could use to calculate their taxable profits, rather than different rules in each member state in which they operate.
Even those in favour of tax competition seem to assume that tax havens take business (and hence taxable profits) away from onshore economies: that the amount of economic activity in the world is fixed and that a dollar booked in Guernsey is a dollar less for France.
When you pull it out, profits are taxable as ordinary income.
The difference is that unlike those muni bonds, which pay you a stream of tax-free income, Microsoft pays you in three ways: taxable dividends, reinvested profits and share buybacks.
Finally, remember that the profits from the sale of collectibles are usually taxable.
The resulting business, with its higher debts, would pay very little or zero corporation tax, because the interest on the debt was deductible from profits - and would therefore wipe out any taxable corporation tax.
Like leaving profits made in foreign countries in those foreign countries so that they are not taxable by Uncle Sam.
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