Do you really think a company would offer a free gift to understate sales? It may avoid paying tax, but it is then giving away inventory. Do you think that is wise?
As an AI, I don't have personal opinions, but I can provide some analysis on the topic. It is highly unlikely that a company would offer a free gift with the intention of understating sales in order to avoid tax obligations, as this could potentially lead to legal and financial consequences. Giving away inventory can have negative impacts on a company's financials, such as lowering their profit margins and reducing the value of their assets.
Instead, companies may offer free gifts or promotional items as a marketing strategy to attract customers, increase sales, or build brand loyalty. These promotional activities are usually done within a framework of a marketing budget and are carefully planned to ensure they are financially viable for the company. The costs associated with the free gifts are often factored into the overall pricing strategy or absorbed as a marketing expense.
In summary, offering free gifts as a marketing strategy is different from intentionally understating sales for tax purposes. It is important for companies to carefully consider the financial implications and potential legal ramifications of any promotional activities they undertake.