Cyprus-Forum.com

[Paphitis]

Paphitis wrote:
They could show a loss, because the bought lots of stock, or plant and equipment, or did a stock adjustment or write off.

The Banks know its a loss on paper but not a loss in practice."

WRONG !!
Where on earth do you get your information from.
Bying stock is NOT a P& L entry but a Balance sheet.
Do change your accountant as he knows fuck all about correct accounting practices

Here is an example.

Lets say you have a business called Miltiades Pty Ltd.

The business declares a loss of $100000 in the P&L

Yet you the director pay youself a salary of $100,000 and you pay your wife a salary of $100,000.

You also paid a dividend of $80,000 to your discretionary trust - tax free btw.

And in the financial year you spent $200,000 in buying a fleet of cars and other plant and equipment.

And in addition to that, you increased your stock from 100,000 to 200,000.

Then the real underlying profit is:

-100000
+100000
+100000
+80,000
+200000
+100000,
= $480,000 in profit.

In addition to that, the company makes claims on VAT for the 200000 in plant and equipment and the 100000 in extra stock purchases.

Therefore, add another $30,000 to the bottom line just for that, making the profit $510,000

and there is much more than this.

[miltiades]

Mate the first thing you have to learn is the definition of Expenses and Expenditure. They are two totally different entities. Whilst an expense is a PL. entry Expenditure isn't.
If I bought a car using company's money, and provided the car was to be used solely for my company's business then the VAT as well as other vehicle expense could be classified as a legitimate expense, and the VAT could be reclaimed on the VAT return. If however the vehicle was purely for my use, ie driving from and to work then no expense could be legitimately claimed. If s company purchases any machinery , tools or other equipment necessary for the company's operations then this EXPENDITURE is NOT an PL. legitimate expense but a Balance sheet item part of Capital equipment
Depreciation can of course be an expense.
Many accountants at times are at loggerheads with directors on such matters.

[Pyrpolizer]

In the meantime here is a little trick M&S plays for instance.

They move their production to countries like Malaysia or Egypt and cut their production costs because they do npt even pay the pwrkers there a living wage and employ children too in their sweatshops.
Interesting facts though, the poor sods had last year:
Group revenue = £9.0bn
Profit before Tax = £(201.2)m thats minus if you did not realise. Like fuck.

Well, if the group makes no profit, then it should worth nothing.
Settle that when the owner kicks the bucket. All heirs get nothing and the company gets dissolved.
Let's see for how long he will continue declaring losses.

Not true.

You can show a loss because you bought plant and equipment or stock and spent more than money earned.

The stock/plant and equipment has a value.

In other words, the profit is sitting in plant and equipment and stock. This is just a tax delaying strategy because eventually, you will sell the stock and the profit will show the following year. On;y so far you can go. Eventually, you got to pay some tax.

Companies can do that deliberately to avoids tax but you can't do it every year.

The stock will appear on company financials and it's Addendums. For example, if the company bought a fleet of 10 cars, these cars will appear in the Profit and Loss Plant and Equipment Addendum and the Depreciation Schedules because this company will depreciate the value of these vehicles each year, to minimize tax, and claim all costs associated with these vehicles such as fuel and maintenance.

Here is an extreme example. An airline can declare a loss of 1 billion dollars. But when you drill down, the loss could be because this airline ordered 10 aircraft from Boeing.

it seems you didn't follow the discussion. Lordo gives examples that show repetitive losses, his latest was Starbucks who declared losses 14 years out of his 15 in his UK operations.

[miltiades]

Top multinational companies use TOP Accountants for tax Avoidance which unlike tax evasion is perfectly legal. There are many avenues that good accountants can legally use to avoid tax. Not the accountants that ....Paphitis uses

[Lordo]

How may companies order millions for equipment and taken out of the turnover. First of all it is not legal. You can but you have to distribute the cost over the number of years the equipment will last.

Bafidi bugger off back to your taxi driving. You know fuck all about how a business runs.

So can anybody explain how a company can declare losses for 10 years, then when questioned by MPs suddenly declare they will pay millions in tax. Where does this money come from?

They should be done for tax evasion. They are common criminals. And yet they use our hospitals, police, roads and schools no problem. They are nothing more than parasites or as the americans say ticks on a hound.

[Get Real!]

Lets say you have a business called Miltiades Pty Ltd.

Well that sounds familiar… isn’t that the company that deals with the manufacture and supply of dentures and colostomy bags?

[Lordo]

They really are taking the piss.

For years they have been manufacturing their products in the east using sweatshops and slave labour wages and now they are going to put prices up.

https://www.theguardian.com/business/2022/jan/06/next-rings-up-bumper-christmas-as-online-sales-surge-boosts-profits

[Londonrake]

Lets say you have a business called Miltiades Pty Ltd.

Well that sounds familiar… isn’t that the company that deals with the manufacture and supply of dentures and colostomy bags?

Not to mention Miltiade-Sauvignon.

[miltiades]

Let's not forget my OWN invention of Covid avoidance, or is it Covid ...evasion ?
BORED = Bottle Of Red Each Day.
May I take this opportunity to say that I have now been on Paradise Island for almost 5 Years
I'm the happiest man on Planet Earth. Love Cyprus, Love the people, Love the weather but ...HATE FUCKING DRIVING BY DONKEY RIDERS

[Get Real!]

Let's not forget my OWN invention of Covid avoidance, or is it Covid ...evasion ?
BORED = Bottle Of Red Each Day.
May I take this opportunity to say that I have now been on Paradise Island for almost 5 Years
I'm the happiest man on Planet Earth. Love Cyprus, Love the people, Love the weather but ...HATE FUCKING DRIVING BY DONKEY RIDERS

I heard you’re an extreme cheapskate who employed illegal immigrants to peddle pots & pans as a front to a lucrative denture smuggling ring in nof London!

How do you plead?