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EA looking to get billion dollar tax break
Game publisher EA expects a tax benefit accumulating upwards to 1.7 billion dollars as a result of changing taxes in Switzerland where their HQ is stationed. As a result of the tax benefit, EA's earnings in the second quarter of 2019 amount to more than $ 1.4 billion.
That is 385 percent more than in the same period last year, when EA was left with $293 million. The increase in the figures is due to a tax benefit of 1.08 billion dollars. EA expects to be able to process the remaining $ 620 million in benefit in its records in the third quarter of 2019.
The quarterly figures also show that EA's revenue has risen to 1.2 billion dollars. That is 6.3 percent more than the same period last year, when the company converted $ 1.1 billion. EA's international headquarters is located in Switzerland. In May, residents of that country approved a change in corporate taxes through a referendum.
The tax reform should end special status for multinationals, who benefited from having to pay less tax than Swiss companies.
Check the earnings PDF here.
Backstabak
Senior Member
Posts: 825
Joined: 2015-11-13
Senior Member
Posts: 825
Joined: 2015-11-13
#5696232 Posted on: 08/01/2019 02:24 PM
Let's talk about Amazon for a sec, just to illustrate my point with a fine-feathered seasoning of duck...
May 15, 1997 is when the IPO went up - and at that point, Amazon was a very profitable and revenue rich company...so again, why float if the point was to get investment...investment that any bank would have given them; and, investors in general would have been happy to do?
The answer is very simple: greed.
If you have a profitable and revenue-rich company, you do NOT need to float. Ever.
If someone were to float for genuine reasons (cash injection to expand) the MO of that company should be to delist as soon as possible. Just as, if you have a mortgage, you goal should be to pay off the mortgage in the shortest period of time as possible.
Sure, but this way you get someone else's money that you can use, which is always great.
Let's talk about Amazon for a sec, just to illustrate my point with a fine-feathered seasoning of duck...
May 15, 1997 is when the IPO went up - and at that point, Amazon was a very profitable and revenue rich company...so again, why float if the point was to get investment...investment that any bank would have given them; and, investors in general would have been happy to do?
The answer is very simple: greed.
If you have a profitable and revenue-rich company, you do NOT need to float. Ever.
If someone were to float for genuine reasons (cash injection to expand) the MO of that company should be to delist as soon as possible. Just as, if you have a mortgage, you goal should be to pay off the mortgage in the shortest period of time as possible.
Sure, but this way you get someone else's money that you can use, which is always great.
Loobyluggs
Senior Member
Posts: 4700
Joined: 2008-09-07
Senior Member
Posts: 4700
Joined: 2008-09-07
#5696235 Posted on: 08/01/2019 02:37 PM
...but the long term cost to undoing the stiching is greater than the intrinsic cost.
Pay a mortgage off in 12 months, and you save many % points over 25 years, versus taking a mortgage for 25 years and the bank owning it (and some might say 'you') for that duration.
The cost of floating from a market valuation (again amazon is a very good example) is deep into the billions, and may even pop over 1Trn in cost(s) to undo, because you gotta pay off the shareholders in full - hence my comment to delist as soon as humanly possible if a company does float.
It's not someone else's money to pi55 up the wall, it's money you owe, and with every % point increase; you owe even more.
Sure, but this way you get someone else's money that you can use, which is always great.
...but the long term cost to undoing the stiching is greater than the intrinsic cost.
Pay a mortgage off in 12 months, and you save many % points over 25 years, versus taking a mortgage for 25 years and the bank owning it (and some might say 'you') for that duration.
The cost of floating from a market valuation (again amazon is a very good example) is deep into the billions, and may even pop over 1Trn in cost(s) to undo, because you gotta pay off the shareholders in full - hence my comment to delist as soon as humanly possible if a company does float.
It's not someone else's money to pi55 up the wall, it's money you owe, and with every % point increase; you owe even more.
XP-200
Senior Member
Posts: 5821
Joined: 2003-04-05
Senior Member
Posts: 5821
Joined: 2003-04-05
#5696390 Posted on: 08/01/2019 08:34 PM
Who knew that tax evasion is lucrative. Whatasurprise.
Here's a very enlightening video about tax evasion by AAA publishers from someone who knows what he's talking about:
Yeap, the Uk is also rife with it from billion bounds companies to MPs to celebs, they are all at it, and thankfully for them those sitting in Westminter had years ago placed these loopholes into place to make their tax evasion legal, the last major one was put through in 2013 to allow multinationals to shift tax offshore, which means once we are out of the EU there will be no one investagting this in the UK anymore.......strange timing right. lol
Who knew that tax evasion is lucrative. Whatasurprise.
Here's a very enlightening video about tax evasion by AAA publishers from someone who knows what he's talking about:
Yeap, the Uk is also rife with it from billion bounds companies to MPs to celebs, they are all at it, and thankfully for them those sitting in Westminter had years ago placed these loopholes into place to make their tax evasion legal, the last major one was put through in 2013 to allow multinationals to shift tax offshore, which means once we are out of the EU there will be no one investagting this in the UK anymore.......strange timing right. lol
deefop
Senior Member
Posts: 111
Joined: 2009-12-07
Senior Member
Posts: 111
Joined: 2009-12-07
#5696483 Posted on: 08/02/2019 03:34 AM
Good for them.
Taxation is theft.
Good for them.
Taxation is theft.
Click here to post a comment for this news story on the message forum.
Senior Member
Posts: 4700
Joined: 2008-09-07
Let's talk about Amazon for a sec, just to illustrate my point with a fine-feathered seasoning of duck...
May 15, 1997 is when the IPO went up - and at that point, Amazon was a very profitable and revenue rich company...so again, why float if the point was to get investment...investment that any bank would have given them; and, investors in general would have been happy to do?
The answer is very simple: greed.
If you have a profitable and revenue-rich company, you do NOT need to float. Ever.
If someone were to float for genuine reasons (cash injection to expand) the MO of that company should be to delist as soon as possible. Just as, if you have a mortgage, you goal should be to pay off the mortgage in the shortest period of time as possible.