Читать книгу Pricing Strategies for Small Business - Andrew Gregson - Страница 11

Why is this important apart from not having CRA or the IRS chasing you? Recently I spoke with a business owner who wished to buy a house. His credit score was excellent and he had cash in the bank to manage the down payment. But because he had deliberately understated his personal and business income to reduce his taxes, his provable income was too low for the bank to consider loaning him the mortgage money.

In another instance, the owner of a company was trying to convince a potential buyer that the company was worth a great deal more than was shown on the books because the owner pocketed so much cash. But because the owner could not prove the cash flow either in his books or in his personal tax returns, the valuation of the company remained very low and no deal could be struck.

It is standard practice when preparing a company for sale to declare all revenues and take the tax hit during the last couple of years before the anticipated sale date. This bumps the revenue and the sale price. The new owner can employ whatever tax scheme he or she wishes after the cash has changed hands.