John Smiles wrote:
Ok is burning a million taxable? I take it they would have had a limited uk company that was vat resisted, would have to be by law. Therefore they would have to be audited at the end of the tax year, where the million pounds companies house would ask when the audit shows up 1 million missing no invoice no wages, they then would have been liable for taxation on this as corporation tax or payee tax taking it out in salaries or unearnt income from dividends. At which point they would have been arrested for burning a million quid i am sure its illegal gal isnt it?
No it's not illegal. They were actually fined for damaging the money used for 'nailed to the wall', but only when they returned it with holes in. Since they haven't returned the burnt money to the bank as legal tender, the bank just assumes it's in circulation. Of course they would have to pay corporation tax on making the million, but that would be true whatever they did with it. It's probably listed entirely legitimately in their accounts as a cash asset. - Andy_R