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Capita unfurls new consulting arm. Hmm, what shall we call it?

jigr1969

Isn't is wonderful that a company with a revenue of £1,850,000,000 makes only £31,200,000 profit - a mere 1.6% of the revenue stream. They took over a company I use to work for that had £12,000,000 revenue and £2,500,000 profits, which had over 20% of revenue being turned into profits.

This surely has to be a tax avoidance scheme since tax is only payable on the profits that a company makes. If they buy a new company using profits, that amount is treated as "investment" and therefore not taxable. (I seem to remember being told by someone from Capita management when I asked them.)

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