| ▲ | scarby2 3 hours ago | |||||||||||||||||||||||||
This isn't a good take. > If you do the work but undervalue it, it's likely tax fraud. A company can value it's services as it chooses. If the work is performed for $1 or $5000 the government doesn't get a say in that. > you do the work but overvalue it, it's likely investor fraud. Quite possibly. Assuming this was done with the intention of misrepresenting your revenue and gaining investment. >The vendor may have been chosen not by merit, but by its willingness to accept an exchange of services. Saying you have $X in revenue implies you won that revenue by merit. Vendors are chosen all the time because of their willingness to accept specific payment terms and a whole bunch of non-merit pipelines via family, via golf course deals etc. | ||||||||||||||||||||||||||
| ▲ | elil17 2 hours ago | parent | next [-] | |||||||||||||||||||||||||
> A company can value it's services as it chooses. If the work is performed for $1 or $5000 the government doesn't get a say in that. That's simply not true. You may get a certain amount of leeway, but it has to be reasonable. | ||||||||||||||||||||||||||
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| ▲ | stymaar an hour ago | parent | prev | next [-] | |||||||||||||||||||||||||
> A company can value it's services as it chooses. If the work is performed for $1 or $5000 the government doesn't get a say in that. Whether it you think it should or not depends on your personal preferences, but in practice the government does get a say in anything that it deems to be an undue way to reduce your taxes. Barter would be much more common if it was a legal way of avoiding taxes. | ||||||||||||||||||||||||||
| ▲ | cortesoft 2 hours ago | parent | prev | next [-] | |||||||||||||||||||||||||
> A company can value it's services as it chooses. If the work is performed for $1 or $5000 the government doesn't get a say in that. It isn’t that black and white. If you are being paid in cash, you can charge whatever you want, that is true. But if you are exchanging goods or services for other goods or services, the government is going to care how you value that transaction. | ||||||||||||||||||||||||||
| ▲ | cjbgkagh 2 hours ago | parent | prev | next [-] | |||||||||||||||||||||||||
Tax law is guilty until proven innocent. Investor fraud is usually brought as a civil case and takes a balance of evidence approach. Since enforcement is stochastic and rare these practices are pretty common. The freedom to do ‘whatever’ is really dependent on the discretion of the government and investors. Most companies can and do fly under the radar but have to be careful not to piss off the wrong people. | ||||||||||||||||||||||||||
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| ▲ | bloppe 3 hours ago | parent | prev | next [-] | |||||||||||||||||||||||||
> If the work is performed for $1 or $5000 the government doesn't get a say in that What if you're getting paid in landscaping? | ||||||||||||||||||||||||||
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| ▲ | nitwit005 42 minutes ago | parent | prev | next [-] | |||||||||||||||||||||||||
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| ▲ | nine_k an hour ago | parent | prev [-] | |||||||||||||||||||||||||
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