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Except accounting-wise, and tax-wise, that is what profit means. Retaining a surplus into future periods is generally going to be a taxable event.

I suppose you could create a reserve against projected liabilities such as warranty returns (which is commonly done in for-profit companies). But that is pretty well explicitly not for a rainy day or the unexpected; it’s for the rather firmly expected.




Retained earnings are non-taxable as long as they relate to a legitimate business need.


Not if you’re Apple and you hide it overseas. Seems a lot like this situation




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