Corporate taxes allow companies to allocate portions of the capital investment as an expense, thereby reducing the amount of taxes owed.

Question

Quizplus · Accepted Answer

Yes, this statement is true. Corporate taxes allow companies to deduct certain expenses, including capital investments, reducing the amount of taxable income and ultimately lowering the amount of taxes owed. This is one of the ways in which companies can effectively manage their tax liability.

Corporate Taxes Allow Companies to Allocate Portions of the Capital