Why do we minus the tax by 1 before multiplying it by EBT? Like if...
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Finance
Why do we minus the tax by 1 before multiplying it by EBT? Like if we multiplied EBT by TAX percentage and then got our tax amount and then minus it from EBT wouldnt that give us NI ?
Necessary explaining please
Net income = (1 TC)EBT
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