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by v8engine 1984 days ago
>"Won't this change mean we operate at a loss to subsidize your other company, which will affect staff bonuses".

I don't get it. Can you explain?

1 comments

Boss owns two companies.

Staff at company A have negotiated a profit share / performance bonus.

Boss directs company A to provide services “below cost” to company B. Company A now has no profit to share; it has been funnelled elsewhere to avoid paying the staff their bonus.

This is a dirty tactic, but I've seen it used... a lot.

It has slimy tax advantages too, for the company.

If you're getting profit sharing, you should be able to see the books, and have controlling shares, too... IMO.