Off Topic Our owners, tax and QPR.

I was discussing income tax once with a mate who was an accountant.

He said there was some scheme whereby one could invest in a movie being made and when that movie flopped, the loss from that venture could be offset as a loss / expense resulting in not paying much tax at all.

I am certain it was one of those dodgy schemes that got some of the high profile folk shamed over the last couple of years and I was never interested (neither was he).

I was wondering if there was a similar thing with QPR. Seeing as TF uses Air Asia to promote QPR, the QPR liveried plane etc, is there some way that his losses at QPR are offset in the Air Asia accounts to reduce his tax burden?

Just a random thought. Any accountants out there?

 

I think Diane Abbott is his accountant...

 

Interesting point. But having accountants on here wouldn't help. You'd have to know the exact set up of the company and where losses are transferred to (if at all).

The truth is, I would be shocked and surprised to find out that all the stakeholders at QPR pay full tax wherever they do business. That's the world we live in.

 

That's the plot to The Producers...

 

Does the qpr plane still exist
Or was it repainted after the photo op

 

I’m sure they do write off the losses against tax where they can, presumably in Malaysia. Though there is no doubting his losses are real and huge.

 

Yep.

 

I thought we were run more like the plot of Brewster's millions but without the big cash prize at the end.

 

Enlighten me please. Heard of that but know nothing about it. Is it the plot because it is possible or just fiction?

 

I thought the same thing when I read that!!

Leo Bloom: [reading] ... 'Springtime For Hitler: A Gay Romp With Adolf and Eva at Berchtesgaden.' Wow...!
Max Bialystock: Wow! It's practically a love-letter to Hitler!
Leo Bloom: This won't run a week!
Max Bialystock: A week? Are you kidding? This play has got to close on page four!

 

But in The Producers, they become a success.

 

A very old article but seems was possible at some stage.

https://www.telegraph.co.uk/finance.../Invest-in-a-film-and-reel-in-tax-relief.html

 

OK, quick plot summary:

When turning up to do the books for Max Bialystock, a disreputable broadway producer, accountant Leo Bloom (who himself has dreams of being a producer) makes an off-hand comment about it being feasibly possible to make more money out of a flop than a hit (While studying Max's books, Leo notes that as a flop is expected to lose money, the IRS will not investigate the finances of failed productions. Leo jests that by selling an excess of shares and embezzling the funds, a flop could generate up to $2 million.) Of course, if your 'flop' was a hit, you'd go to jail because you could never pay your investors back.

Max then goes on a fund-raising spree by sleeping with loads of old ladies for cash, whilst he and Leo search for (and find) the worst play ever written....... 'Springtime For Hitler: A Gay Romp With Adolf and Eva at Berchtesgaden.'

And hilarity ensues.

Weirdly, whilst the 1967 original is great, I really like the 2005 remake with Matthew Broderick and Nathan Lane - possibly more than the first version.

 

They made a remake
Was it a tax rightoffable flop

 

Go watch it and see. I thought it was very well made.

 

Thank you.

I will add to my list of possible things to do.

Tx again.

 

If it helps the lovely Uma Thurman was in the remake

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Or you could watch the original with Lee Meredith as Ulla

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As Max would say "Arrrruuuw, arrrruuurrraaaruuuuuwwwww!"

 

Seems like a sensible place to post this. Good news for TF or not?

 

To be able to offset losses against income from elsewhere depends upon a great many factors, particularly (as Stan says) how your business interests are structured, as well as within which tax jurisdictions these are assessed and whether there are tax treaties between these jurisdictions (to avoid income being assessed in more than one).

Other factors to consider include whether ‘same trade’ rules apply when seeking to offset losses against income, what these are limited to and whether income losses can be converted to capital losses etc.

It’s one of those where a good tax accountant charges you £50k to save you £25k.