Comment on Bootstrapping vs Funding - a tax arbitrage

Ayur Rastogi commented on 30 May 2021, 11:40 PM

Because of the human tendency of saving, everyone will just save the money and spend a little part of that money because of high taxation rates, resulting in a stagnant economy. And it’s not easy for the government to track all the real expenditures.
PS: Then you will just create a subsidiary and transfer funds as salaries (employees will not be taxed) and then you will make the subsidiary NPA and then BOOM you saved tax.

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