If you throw a bunch of investments or R&D costs into this year, you can all of a sudden have a huge financial loss while having positive cashflow.
Same is true for buying other companies, depreciation and other fuckery with stuff like "goodwill".. or you just paid off a massive loan to an actual creditor, bought back stocks, or moved cash to your offshore holding to dodge taxes (in the form of renting your own IP from your own company in said tax haven)... The list is nearly endless.
The point is, in most countries a loss can be spread out over multiple years to offset profits. Meaning you don't have to pay taxes on the profits.
Because it's only loss.
If you throw a bunch of investments or R&D costs into this year, you can all of a sudden have a huge financial loss while having positive cashflow.
Same is true for buying other companies, depreciation and other fuckery with stuff like "goodwill".. or you just paid off a massive loan to an actual creditor, bought back stocks, or moved cash to your offshore holding to dodge taxes (in the form of renting your own IP from your own company in said tax haven)... The list is nearly endless.
The point is, in most countries a loss can be spread out over multiple years to offset profits. Meaning you don't have to pay taxes on the profits.