Originally Posted By lowebird
Originally Posted By Stuart Green
A firm like Morgan would be very canny in tucking away gross profits into r&d, property purchases, investments, machinery purchases, stock holding, tax losses and so on . Net profit tells no story at all, its just what they pay tax on.


I didn't realise that point, i.e. that they only pay tax on the declared profit, in which case if all the other facts are germane, they are quite clever.


Standard accounting practice in any well run business


Martin (Deano)