Certain expenses such as interest repayments can be offset against profits.

"There is nothing in socialism against profits," he said.

They are usually created when a company makes a loss and can be held for several years to offset against future profits.

The banks are looking hard at enormous charges against profits that some companies will soon report under a new accounting rule.

This allows businesses to offset the costs against taxable profits.

Another loss that the bank will be able to offset against future profits and so pay less corporation tax.

Texas Instruments will take a special charge of $55 million against fourth-quarter profits and eliminate 1,500 jobs.

The company said yesterday that it would reduce its work force by 6 percent and take a $600 million charge against profits.

Its high tax losses can then be set off against profits from leasing the aircraft to a local carrier.

I simply drew living expenses against profits earned by my shares.