diverting profits

USAGE SUMMARY

The phrase "diverting profits" is correct and usable in written English.
It can be used in contexts discussing the allocation or redirection of financial gains from one area to another. Example: "The company is diverting profits from its successful product line to fund research and development for new innovations."

✓ Grammatically correct

News & Media

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

19 human-written examples

Who could be in favour of diverting profits?

Independent

Authorities have already identified 30 firms (unnamed as yet) suspected of diverting profits from Australia.

The Economist

Chancellor George Osborne has pledged to reveal new measures next month to stop global corporations diverting profits offshore.

The Guardian - Business

Mr Osborne also unveiled what was dubbed the "Google tax" as he promised to stop multinationals diverting profits offshore to avoid corporation tax.

Independent

She's also diverting profits from the book that she self-published, "Moving Forward on Your Own: A Financial Guidebook for Widows," to support others like her.

The New York Times

Proposals on how to tax multinationals diverting profits overseas, to what tax experts call "controlled foreign companies" (CFC), will also be optional.

The Guardian - Business

Human-verified similar examples from authoritative sources

Similar Expressions

41 human-written examples

The reaction among large technology companies to Osborne's diverted profits tax (pdf) has been mixed.

The Guardian - Business

Heferen also provided general commentary about the UK's diverted profits tax.

The Guardian

What impact has the chancellor's diverted profits tax (DPT) had on Google's arrangements?

The Guardian - Tech

A number of other countries are considering copying Osborne's diverted profits tax.

The Guardian - Tech

For example, in 2015, the United Kingdom enacted the diverted profits tax … which could increase our tax obligations," it said.

The Guardian - Business

Expert writing Tips

Best practice

When discussing corporate finance or tax strategies, use "diverting profits" to clearly indicate the act of moving profits, often to reduce tax liabilities or for investment purposes.

Common error

Be careful not to use "diverting profits" when simply describing legitimate investment or reinvestment strategies within a company. Ensure the context implies a shift that might raise ethical or legal questions.

Linguistic Context

The phrase "diverting profits" functions primarily as a gerund phrase, acting as a noun. It describes the action of redirecting profits, often in a business or financial context. Ludwig AI shows that this often relates to corporations moving profits offshore.

Expression frequency: Common

Frequent in

News & Media

70%

Formal & Business

20%

Science

5%

Less common in

Encyclopedias

0%

Wiki

0%

Reference

0%

Ludwig's WRAP-UP

The phrase "diverting profits" is commonly used to describe the act of redirecting financial gains, often in the context of corporate tax strategies. Ludwig AI analysis confirms its grammatical correctness and prevalence in news and business media. While the phrase itself is neutral, it often carries connotations of tax avoidance or questionable financial practices. Related terms include "reallocating earnings" and "shifting revenues", which offer alternative ways to express similar concepts with slightly different nuances. When using "diverting profits", it's important to consider the ethical and legal implications of such actions, ensuring clear and accurate communication.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

reallocating earnings

Focuses on the act of redistributing earnings to different areas or purposes.

redistributing income

Highlights the action of sharing income among different recipients or areas.

shifting revenues

Emphasizes the movement of revenue streams, often for strategic purposes.

transferring funds

Indicates a movement of money from one account or entity to another.

channeling proceeds

Suggests a deliberate direction of profits towards a specific goal or destination.

funneling income

Implies a narrower or more controlled direction of income, often into a particular channel.

re-routing funds

Emphasizes changing the original path or destination of funds.

redirecting capital

Focuses on the movement of capital investments from one area to another.

repurposing revenue

Highlights changing the purpose or application of revenue.

relocating assets

Indicates moving assets, which can include profits, to a different location.

FAQs

What does "diverting profits" mean in business?

In business, "diverting profits" typically refers to the practice of redirecting profits from one entity or jurisdiction to another, often with the intention of minimizing tax liabilities or achieving other financial objectives.

What are some ethical considerations when "diverting profits"?

Ethical considerations arise when "diverting profits" involves strategies that exploit legal loopholes to avoid paying a fair share of taxes, potentially harming public services and creating unfair competition. Consider if the "transfer pricing" is abusive.

How can I use "diverting profits" in a sentence?

You might say, "The company was accused of "diverting profits" to offshore accounts to evade taxes" or "The charity is "diverting profits" from its retail operations to support its community programs."

What's the difference between "diverting profits" and "tax avoidance"?

"Diverting profits" is a specific action, while "tax avoidance" is a broader term encompassing various legal strategies to minimize taxes. "Diverting profits" can be a method used within a tax avoidance scheme. However, "diverting profits" is usually regarded as a more illicit action than tax avoidance.