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Understood that Ted was hiding revenue or misrepresenting how much the company earned annually, but I couldn't figure out why he was doing this. To what end would hiding annual income be?

Also as a side question, what was he doing with that money?

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He was hiding the income to avoid paying the taxes as the company was having some financial difficulties.

I remember him telling Skylar how he felt everyone working there was like a family and he couldn't let the business go under so that was his motivation.

I don't think he was doing anything in particular with the money but his ain reason was avoiding taxes.

Edit The business was making a profit on certain accounts. This income is taxable. By hiding the income Beneke didn't need to pay the taxes. I believe Skylar said he was recording the income as expenditure. Expenditure isn't taxable on Benekes side of the transaction. More information on these types of taxes can be found here : http://en.wikipedia.org/wiki/Corporate_tax_in_the_United_States

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Hi, I'm not an American nor know how their tax law works, but how does hiding revenue mean paying less taxes, does that mean that the amount of taxable income outweighs how much net profit he has to pay his employees? Could you elaborate a bit more in layman terms please? :o) –  Jared Oct 20 '13 at 20:26
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Added in very layman terms because I'm also not from the US and know very little about it :) –  Travis Oct 20 '13 at 20:50

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