2007-12-21 09:08:33 · 3 answers · asked by Laura 6 in Business & Finance ➔ Other - Business & Finance
Actually that would reduce profits and any tax obligations assessed on inventory and those profits.
It could be considered tax evasion if you were to be audited, but I've never heard of a case.
However, inventory can be marked down legitimately and no one may be the wiser. Shortages and damaged goods are always marked down.
I've known manufacturers in California to load inventory on trailers on December 31 and drive over the state line, park over night, and return January 1, to avoid EOY state inventory tax.
2007-12-21 09:20:54 · answer #1 · answered by ed 7 · 0⤊ 0⤋
No, it isn't. This may be taking place because the company wants to undervalue the inventory to reduce personal property tax. That is illegal!
2007-12-21 09:11:54 · answer #2 · answered by jwishz 7 · 0⤊ 0⤋
If some one gains some sort of financial benefit from this, it could be considered "theft by deception".
2007-12-21 09:17:10 · answer #3 · answered by Albert 6 · 0⤊ 0⤋