In the world of finance, there is such a thing as a profitable loss. Put another way, a loss can become valuable if it generates a tax benefit by being offset against profits. There are several legitimate ways to turn a setback into an advantage. Historic losses can be set against current-year profits, carried back to reduce tax on profits from earlier years, or carried forward to offset future taxable income. In some cases, losses can also be transferred within a corporate group and used by a profitable subsidiary, reducing the overall tax burden of the group. All of this…

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