For many production companies, setting up their own sales companies can avoid excessive consumption tax burden. The company's products are sold to the sales company, sales company and then sell to distributors or customers. As the consumption tax in the production process of tax, sales tax, therefore, the sales company is not satisfied with the consumption tax, as long as the reasonable price, you can pay less part of the consumption tax.
A company to invest in a company, occupies 60% of its equity, the company's market operation is good, the company year after year earnings, the value of the equity of 60% has gone up a lot. Now the company boss wants to transfer the equity, the financial manager of the proposal should be the first profit share transfer, so you can pay less tax. Because the first distribution without tax, not to tax allocation