pmg

The money men on the board may be able to answer this.
Is it possible for a company that is owed money from a creditor, ie PMG are owed an alledged sum of 7.5 million, to include the 7.5 mill on their balance sheet, then if the creditor goes bust then PMG could then offset it against any tax to be paid.
If they made a profit of 20mill tax would be 40% ??? = 8 mill, the 7.5 mill (in effect a loss) would be absorbed into the 8 mill tax bill, so in effect PMG lose nothing or not so much depending on what tax they pay.
I hope its sort of clear what I am trying to say, its a little creative accounting

The money men on the board may be able to answer this.
Is it possible for a company that is owed money from a creditor, ie PMG are owed an alledged sum of 7.5 million, to include the 7.5 mill on their balance sheet, then if the creditor goes bust then PMG could then offset it against any tax to be paid.
If they made a profit of 20mill tax would be 40% ??? = 8 mill, the 7.5 mill (in effect a loss) would be absorbed into the 8 mill tax bill, so in effect PMG lose nothing or not so much depending on what tax they pay.
I hope its sort of clear what I am trying to say, its a little creative accounting

I think I see what you are proposing. Basically if PMG wrote off £7.5m (presumably owed to CCFC) as a bad debt would they save money on their corporation tax?

I'm no expert but I would think if their profits where £20m then writing off £7.5m would reduce them to £12.5m. Corporation Tax is 28% so the saving at a guess would be 28% of £7.5m i.e. £2.1m leaving PMG £5.4m (net) out of pocket. As I say just a guess but it sought of adds up.

it was just a thought around why pmg took their share of the land deal and not used the cash for the taxman.
This way they may not lose so much...........

it was just a thought around why pmg took their share of the land deal and not used the cash for the taxman.
This way they may not lose so much...........

Yea I can see that and it is a bit creative, that's why its not allowed