If you have a company and that company pays all your bills, utilities, mortgage, weddings etc. How in particular would that go into the accounts. And more imporantly how would it be treated for tax. Let's take a wedding of say 1 million. What would be the company tax benefit of paying for a wedding ? Can you claim VAT back etc.
That's a really weird question Bronte!
I presume you're talking about a company whose business is nothing to do with weddings, paying for the wedding of its proprietary director?
Please explain?Ah sure didn't he employ loads of people and the GAA are supporting him now so he can't be all bad
IMHO, the Quinns didn't take a wage in the usual sense - all expenses were routed through the company and at the year-end, when the P35 returns etc are done up, these expenses are taken into account.
There is absolutely nothing unusual in this at all. It happens in tens-of-thousands of companies across Ireland.
Not at all a weird question as Hans has pointed out. You never know what those clever boys in Deloitte/E&Y/KPMG dream up.
You mentioned there about a business being in the business of weddings, like a hotel business, then let's just take a wedding, would that be allowed somehow for tax purposes. Is there any way it can have a tax benefit?
How is it normal for a company to pay personal bills? In what way are the expenses taken into account. You mean they are repaid to the company?
There's no direct or legitimately obtainable tax benefit, but there would certainly be scope for absorbing some of the costs of one particular wedding into the overall overheads of running the business.
I hadn't realised it was normal for companies to pay the personal bills and then recoup/deduct etc.
Its not at all normal for a company to routinely pay personal bills, especially when the cumulative amounts involved are substantial. Most companies steer well clear of such messing, although many will have occasional, minor 'personal nature' items that can be accounted for through Directors Current ac or in lieu of net salary payments.
Generally, the ODCE take a dim view of the use of company funds to finance personal lifestyles. If a client company is doing so, their accountant would normally be tempted to put them into the 'nightmare client' or 'ex-client' folders.
You mention dim view, but it's not illegal to operate this way.
Its a bit like driving along the roads on a semi-permanent basis with a glass or two of wine on you. You may be legal (ie under the limit) some of the time but you will invariably drift into illegality (ie over the limit) at least occasionally. And when the law is broken, albeit perhaps unwittlingly, the trouble starts...
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?