1. The higher the cost, the less your taxable profit on the sale. 2. The entity can understate its taxable profits or even report a loss. 3. The commission goes through the income statement and will reduce our 1997 taxable profit. 4. One reason for lowering cap-gains taxes is to encourage investors to take taxable profits. 5. The business expense gives the American subsidiary a deduction that wipes out taxable profits. 6. For the first five years, it has no taxable profit and pays no gains tax. 7. To cheat, an investor simply overstates the amount he paid for the security, thus reducing the taxable profit. 8. Qualifying companies would be allowed to deduct from their taxable profits 25 percent of dividends paid to stockholders. 9. These treaties allow companies to transform taxable profits into expenses that they can deduct on their American tax return. 10. The advantage is that, on disposal, the whole of the written down value may be offset against taxable profits.