Donation whether tax deductible for company/trust if there's tax losses (not for

yw0830

We all know donation cannot make tax losses for individuals.

How about company or trust? Can their donation make a tax losses? Or we have to add back donation expenses if the company or trust are making losses?

Any tax ruling or legislation support?

yw0830

lee2267

Can their donation make a tax losses? --No ..Add back ...it looks like this Q is uni assignment ..

see here: http://www.ato.gov.au/corporate/ ... ontent/00262223.htm

yw0830

lee2267 发表于 2013-3-13 19:36
Can their donation make a tax losses? --No ..Add back ...it looks like this Q is uni assignment ..

...

Initially, I added back, but boss said it's only for individual.

I found the same link and showed to the boss, he still said it's for individual. It didn't clearly said in the sentence that corporate can't have tax deduction for donation if there's tax losses.

lee2267

company是一定要add back。。trust 你可以直接放到个人头上做deduction。。donation的钱如果直接从trust 账户走的话 。这笔钱算 beneficairy drawing。这样总好过add back。

yw0830

lee2267 发表于 2013-3-13 19:50
company是一定要add back。。trust 你可以直接放到个人头上做deduction。。donation的钱如果直接从trust 账 ...

The problem was that the trust was making losses, no distribution. The donation receipts most probably were made in the name of the trustee company.

lee2267

金额多大？10w？

yw0830

lee2267 发表于 2013-3-13 19:55
金额多大？10w？

$5,000

lee2267

恩。。你老板怎么说。你怎么做。。。。要记得 加注 notes 和时间。。我以前的firm的时候经常这么做的。
我印象最深刻的是 老板要我amotise goodwill ， 还坚持要5年。。。我超级昏倒。。
现在的firm比较正规。。按照ruling来。。

yw0830

lee2267 发表于 2013-3-13 20:00
恩。。你老板怎么说。你怎么做。。。。要记得 加注 notes 和时间。。我以前的firm的时候经常这么做的。
现 ...

No choice, follow boss' decision. I have amended the tax return already before I went home.

lee2267

yw0830 发表于 2013-3-13 20:03
No choice, follow boss' decision. I have amended the tax return already before I went home.

可怜的娃。。习惯就好。。

cycwong21

lee2267 发表于 2013-3-13 19:00
恩。。你老板怎么说。你怎么做。。。。要记得 加注 notes 和时间。。我以前的firm的时候经常这么做的。
我 ...

Goodwill (the cost of setting up business or company, such as legal fees & Initial ASIC fees) is belonged to blackhole expenses, we used to amortise it by 5yrs straightline. Don't really understand what's wrong of it? Perhaps under new rule?

cycwong21

lee2267 发表于 2013-3-13 18:36
Can their donation make a tax losses? --No ..Add back ...it looks like this Q is uni assignment ..

...

Based on the link you provided, ATO even disallowed personal superannuation contribution (non-super gurantee portion)  if the entity was making losses.

lee2267

cycwong21 发表于 2013-3-13 23:30
Goodwill (the cost of setting up business or company, such as legal fees & Initial ASIC fees) is b ...

you need to update. Formation cost =the cost of setting up business or company, such as legal fees & Initial ASIC fees
can be amotised in 5 Years in tax system ..

GOODWILL  can be amotised in commercial accounting system.( IAS & AASB standard,normally in 20 years)..
you can not amotise in tax system (ATO ruling)

yes,... if in loss, no super deduction