1.   Companies pay corporation tax calculated on their taxable profits after allowance for interest payments and depreciation.

2.   For both partnerships and companies all properly incurred expenses of the trade can be offset against revenue when computing taxable profit.

3.   Hence in the early years of the life of a fixed asset the taxable profit may be less than the reported profit before tax.

4.   The interest paid to debenture holders is deductible when calculating taxable profits, unlike dividend payments.

5.   A mutual fund manager buys and sells stocks all the time, and each of those decisions can create taxable profits.

6.   Alas, tax law requires that a business report a taxable profit at least two of every five years, or those deductions will be disallowed.

7.   He also suggested NTT is banking heavily on the ability to reduce taxable profits in one unit with losses from another.

8.   Holding companies also offer tax advantages, allowing companies to reduce taxable profits in one unit with losses from another.

9.   In short, what once were taxable profits have been turned into virtually untaxed dollars for use anywhere in the world.