• elxeno@lemm.ee
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    6 months ago

    Can’t they just buy in the name of a company, which would be a ‘business expense’, which is kind of a write off?

    • HydraulicMonkey@lemmy.world
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      6 months ago

      They would have to justify how it is a part of the companies operations. In theory at least.

      So a private jet to fly your execs to business meets? Ok.

      A yacht? Maybe for entertaining customers? I don’t know about the US, but here in Australia entertainment expenses are written off at a lower rate than other business expenses.

      • TheEighthDoctor@lemmy.world
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        6 months ago

        A yacht can have meeting rooms, you can receive clients in these meeting rooms for business purposes, making it therefore a business expense.

      • fine_sandy_bottom@discuss.tchncs.de
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        6 months ago

        here in Australia entertainment expenses are written off at a lower rate than other business expenses.

        Sorry mate. Not really correct.

        If an Australian company pays for entertainment expenses for staff, it’s considered a fringe benefit and fringe benefits tax is payable. It equates to almost the cost of the actual expense. So if a company pays $10k for an employee to take a holiday, they’ll have to pay almost $10k in fringe benefits tax, but they do get a deduction for the whole $20k, which will save them $5k in income tax.

    • fine_sandy_bottom@discuss.tchncs.de
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      6 months ago

      It doesn’t work like that. Expenses need to be “necessarily incurred in the course of producing income”. Just be cause a company pays for something doesn’t make it tax deductible.