in terms of tax revenue, a COUNTRY is made up of its registered
COMPANYs and its registered PERSONs. registered entity that
earns revenue for their COUNTRY of registration registered
entity that earns revenue for their COUNTRY of registration. As
you can see, both these registered entities earn revenue for
their COUNTRY of registration. But there's a BIG DIFFERENCE in
the tax burden of these two entities called RUNNING COSTS. We
all know what the running costs of a COMPANY are: assets
(property and equipment) & liabilities (wages, amenities, loans
etc...) A COMPANY can deduct these values from their gross
earnings before being taxed: this is known as pre-tax profit.
Well, if the legal definition of COMPANY and PERSON are so
alike, why are PERSONs not allowed to deduct their 'running
costs' before they are taxed on their earnings? Yes, there's a
P.A.Y.E. pre-tax 'allowance' for a registered PERSON so let's do
the accounting with some generous figures to see the unfairness.
PERSON (with pre-tax allowance) earns