5 ms·
I don't see why not. Business expense?
by cure 6y ago
I don't see why not. Business expense?
- SilasX 6y agoIsn’t stuff stolen in a theft/robbery deductible generally?
- lgregg 6y agoThe ransom payment isn't really a theft or robbery, they didn't have to give it.
- SilasX 6y agoIf you’re mugged, you don’t “have to give” your wallet either, but you were coerced by an external party.
- lgregg 6y agoI would argue those are different things because there was the threat of violence in the case of a mugging.
- deleted 6y ago[deleted]
- pjc50 6y agoAt the bottom of the thread the ransomers gave them security advice. Therefore this is an "unplanned penetration test" and gets filed as "consulting" on the expenses side of the accounts. Almost all money going out of a business can be deducted from money coming for purposes of counting taxable profit. I'm having a hard time thinking of one that isn't.
- rjtavares 6y agoIn Portugal you can actually make a payment as "Confidential or Undocumented Expense" (with no invoice supporting it), making it taxable instead of tax deductible.
- SilasX 6y agoThat's ... not a massive loophole used to hide money from taxation?
- rjtavares 6y agoNo, because they are taxed at basically the maximum marginal rate. There are cheaper ways to avoid taxation. It's seldom used and only when there's no alternative (e.g. a lost invoice that you don't want to charge your employee for).
- SilasX 6y agoAch, sorry, I misread your comment -- so, it doesn't change their tax situation, so there's no reason to falsely use this. Understood. Never mind.
- vkou 6y agoYou don't have to pay Bill $40/hour in wages, you could have probably hired someone who could do the job for $30/hour. Yet, regardless of how much you pay Bill, his wages are tax-deductible.