Is it possible -with a clever accountant?
for a company to buy a product in bulk and sell it -then claim tax back off it- thereby actually buying the product for a profit? I ask because I work for WHSmiths and they have sold off games consoles for 10 pence(my b*stard manager got a nintendo Wii)
Other - Business & Finance - 5 Answers
People Answers, Critics, Comments, Opinions :
Answer 1 :
If you are 100% sure of the facts then report them but be prepared to lose your job
Answer 2 :
Happens all the time....if you feel that way about your manager, get a new job.
Answer 3 :
More likely this is what is called a 'loss leader' Many big companies virtually give away some stock for many reasons, to grab the attention of thousands of customers so there is lots of media coverage, massive word of mouth and it all starts this mad rush to the store. This also creates an image that it's possible to get absolute bargains in this store that stays with people for years. So the company loses a few thousand on the consoles, but it sells the games and accessories which they might buy while in the store, and then they wander around and pick other goods too. As an ex retail manager i've done this lots of times in the past and things similar like competitions where you post your entry in the store box (right at the back of the store), freebies for kids, just anything to get people into the store and build up a huge level of interest. It's nothing for WHSmiths to give away a few hundred of these, the profits come in the games anyway.
Answer 4 :
I keep reading ur question and wondering what ur on about??? Companies DO buy products in bulk They then sell it The purchase is shown in their outgoings (to claim the tax) And the sale will show in their eerrmmm sales (tax due) And all their products are brought for profit Maybe iv read ur question wrong?
Answer 5 :
Surely, this is how marketting in business works where the people at the top of the tree can change the rules but ensure that the people at the bottom of the tree don't.
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