Earlier quoted context omitted.
I’m fairly certain that’s incorrect . Businesses are only taxed on actual revenue earned. What you decide to charge—whether $100, $50, or even giving it away for free—is purely a business decision, not a tax one. — This is different from a nonprofit donation scenario though. For example, if your service normally costs $X but you choose to provide it for free (or at a discount) as a donation to a non-profit, you can t…
> Businesses are only taxed on actual revenue earned. I don't want to go too far down the rabbit hole of hn speculation, but if another entity owes you 100k, and they go bankrupt, there absolutely are tax implications.
That is a lack of payment situation.
Revenue was still earned (and charged) … and since you never collected revenue then you don’t pay taxes.