8 replies to this topic

[FlyerGGG]

When are taxes on profits paid? Is there a way to evade tax by buying aircraft and building terminals before the tax is due?

[Keelung]

Monthly and no. 

[the DOC]

TAX EVASION

[Mobeer]

Leasing aircraft will be counted as a cost and hence reduce profit and tax.

[FlyerGGG]

Thanks Mobeer. So in essence there is no incentive to capitalise and buy things? How unrealistic lol

[Moldova96]

Well anything that you buy and any money that you make is taxed in real life, there is no way of avoiding tax.

[Northern]

Thanks Mobeer. So in essence there is no incentive to capitalise and buy things? How unrealistic lol

 

 

The key advantages of buying are;

• cheaper to run (most cases) as the deprivation is lower than the lease
• Financial difficulties - if you run into some trouble they won't be took off you 
• Adds to company value

[mxax-ai]

Is there a variation in taxes between countries? For example very low taxes in Dubai and high taxes in the UK?

[FlyerGGG]

Well anything that you buy and any money that you make is taxed in real life, there is no way of avoiding tax.

 Actually companies try to run on low profits to avoid tax. If you spend money on acquisitions you lower your income and therefore less tax. Tax in the real world is also paid yearly, not monthly so there is lots of room to "cook the books".