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No... say Mozilla Corp. owes 5m in taxes. They could pay the tax directly to IRS. Or they can donate/invest in a registered non-profit company. A percentage of
by deafpolygon 3y ago
No... say Mozilla Corp. owes 5m in taxes. They could pay the tax directly to IRS. Or they can donate/invest in a registered non-profit company. A percentage of that can be written off as a tax deduction. Since donating money also reduces the available amount that can be taxed... and they can be seen as charitable. It's a win-win depending on how you do it.
It looks like Mozilla Foundation also invested ~8m back to Mozilla Corp. for something but it's not clear what. I may have misunderstood it. I'm not a tax expert nor a lawyer, but it's a common tax strategy.
- mcv 3y agoYeah but if that tax write-off ends up all in the pocket of the CEO, it starts to look more like a tax dodge scheme for the CEO.
- deafpolygon 3y agowhy? this is how the system works and corps are incentivized to do so.