Question

If a company has a higher than usual cost of goods sold in a year, what potential effect does that have on its taxes?

Answer 1

The business tax will increase

Explanation:

Businesses (that do their business over the table & legally) will have to pay business tax. This is calculated by the amount of tax paid by taxable income. So, if you are selling more products in a year than the previous year, this years taxes will increase.