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It doesn't factor in the cost to the government of holding those loans over years, and it doesn't factor in the cost of collections".
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Some insurance companies dislike the penalty because they will have to collect it, and they say the cost of collection will often exceed the amount of the penalty.
Taking into account factors such as the cost of collection, the difference between the total amount of licence fee collected and the BBC spend in Scotland is around £100m.
That threshold was reduced from £18 to £15 in November after the UK Exchequer found it had meant £130m of tax had not been collected in 2010, which it estimated was higher than the cost of collection.
The result is a higher average cost of collection per ton".
The cost of collection is the normal part of doing business, but also yields substantial benefits to companies.
The value of recycled waste is generally higher than then cost of collection, according to this data from WRAP, supplied to me by Zero Waste England (ZWE).
A council will never make money from selling recyclables, he emphasises; all it can hope to do is offset the cost of collection - and higher prices are associated with kerbside sorting.
It relies on a quirk in the tax law called Low Value Consignment Relief (LVCR), which exempts goods worth less than £18 imported from outside the EU from VAT because it is assumed the cost of collection would not be worth the revenue raised.
In most programs the cost of collection is the dominant cost.
The proceeds - after deducting the cost of collection - are used to meet expenses of salt-making, labour welfare and research.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com