AMD Ryzen 5 5600 review
PowerColor RX 6650 XT Hellhound White review
FSP Hydro PTM Pro (1200W PSU) review
ASUS ROG Radeon RX 6750 XT STRIX review
AMD FidelityFX Super Resolution 2.0 - preview
Sapphire Radeon RX 6650 XT Nitro+ review
Sapphire Radeon RX 6950 XT Sapphire Nitro+ Pure review
Sapphire Radeon RX 6750 XT Nitro+ review
MSI Radeon RX 6950 XT Gaming X TRIO review
MSI Radeon RX 6750 XT Gaming X TRIO review
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
#5696579 Posted on: 08/02/2019 09:36 AM
...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, from a pov of a company you are right. But behind that company are individual people who own those shares and will simply sell them and go away once it doesn't make them enough profit, none of them needs to even consider the long term.
...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, from a pov of a company you are right. But behind that company are individual people who own those shares and will simply sell them and go away once it doesn't make them enough profit, none of them needs to even consider the long term.
Loobyluggs
Senior Member
Posts: 4699
Joined: 2008-09-07
Senior Member
Posts: 4699
Joined: 2008-09-07
#5696615 Posted on: 08/02/2019 11:57 AM
The majority of shares are owned by banks and investment funds, not individuals - and, I think you might be forgetting (appologies if not) that the market capitalisation of a firm is based on revenue, and the profits are just ancilliary to the value of the share, not the profits of the share.
Sure, from a pov of a company you are right. But behind that company are individual people who own those shares and will simply sell them and go away once it doesn't make them enough profit, none of them needs to even consider the long term.
The majority of shares are owned by banks and investment funds, not individuals - and, I think you might be forgetting (appologies if not) that the market capitalisation of a firm is based on revenue, and the profits are just ancilliary to the value of the share, not the profits of the share.
Backstabak
Senior Member
Posts: 825
Joined: 2015-11-13
Senior Member
Posts: 825
Joined: 2015-11-13
#5696660 Posted on: 08/02/2019 02:15 PM
Maybe I'm the stupid here, but I do think that a lot of investors, regardless of who they are, just invest money into business and expect a certain return. When the company dips below that return, they sell and invest elsewhere. That's why I all of these companies don't really care about long term profits and just maximize the sort term return.
The majority of shares are owned by banks and investment funds, not individuals - and, I think you might be forgetting (appologies if not) that the market capitalisation of a firm is based on revenue, and the profits are just ancilliary to the value of the share, not the profits of the share.
Maybe I'm the stupid here, but I do think that a lot of investors, regardless of who they are, just invest money into business and expect a certain return. When the company dips below that return, they sell and invest elsewhere. That's why I all of these companies don't really care about long term profits and just maximize the sort term return.
Loobyluggs
Senior Member
Posts: 4699
Joined: 2008-09-07
Senior Member
Posts: 4699
Joined: 2008-09-07
#5696745 Posted on: 08/02/2019 06:15 PM
If you did that, you would be liable to pay probably the highest amount of capital gains tax, depending on which country you did that in. AFAIK, all countries have some form of CGT for selling stocks and shares.
Maybe I'm the stupid here, but I do think that a lot of investors, regardless of who they are, just invest money into business and expect a certain return. When the company dips below that return, they sell and invest elsewhere. That's why I all of these companies don't really care about long term profits and just maximize the sort term return.
If you did that, you would be liable to pay probably the highest amount of capital gains tax, depending on which country you did that in. AFAIK, all countries have some form of CGT for selling stocks and shares.
Click here to post a comment for this news story on the message forum.
Senior Member
Posts: 12778
Joined: 2003-05-24
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:
corruption at is best