Tax deductible example sentences

The issue of debentures is suitable in the situation when the sales and earnings are relatively stable; As debentures do not carry voting rights, financing through debentures does not dilute control of equity shareholders on management; Financing through debentures is less costly as compared to cost of preference or equity capital as the interest payment on debentures is tax deductible.For example, while the dividend on preference shares is not tax deductible, interest paid on debentures and loan is tax deductible and may, therefore, be preferred by organisations seeking tax advantage.