That doesn't make sense to a layman Johnny. Why would it come through as a "profit" over and above? If it is just a paper transaction, then the "profit" of the company should have remained at £0.9m, not increased to £3.5m, because the £0.9m already includes the draw down of taxable income. Or is it that the taxation element of the accounts is in the wrong place in circumstances such as ours, so the "profit before taxation" is actually "profit after taxation" because we have already paid it, and then the final profit becomes "profit before taxation"? However I read this, the profit should remain at £0.9m because that is profit before taxation and we did not pay any tax so profit after taxation should also read the same £0.9m. Of course I am coming from a common sense layman's view of interpreting the figures and the words used. I just can't understand the logic behind the explanation you gave, I am not in any way disputing that it is in all likelihood correct But it makes no sense to have £2.6m added to make our profit £3.5m. And whya would you pay £2.6m tax on £0.9m (300%)? Or put it another way, why would you pay £2.6m tax on £3.5m (75%)?
http://www.dailyrecord.co.uk/news/scottish-news/2012/05/18/shamed-rangers-owner-craig-whyte-s-firm-linked-to-crook-jailed-over-36m-fraud-86908-23864062/ You have wonder what sort of shady investors use companies based in the Virgin Islands
Evening Jonny, this was the source http://www.throughitalltogether.com...ses-leeds-uniteds-finances-leeds-united-news? Unfortunately, these look really manipulated to my human eye
No, it means we have very low debt or very low interest rates or both. Accounts are prepared on the accrual basis meaning you record the interest that has accumulated each year, not the interest actually paid.
This is why professionals are paid the "big bucks!" At some point in the company's history (pre-admin, maybe) the company incurred large tax losses (accounts and tax losses are usually very different). In those years, the benefit of those losses, i.e., future reduced taxes could not be recorded as there would have been doubt they would ever be realized. Now that profits are being made, the benefit of the tax loss can be recognized. As noted above, tax and accounting losses/profits are not the same. I don't know what corporate tax rates are in the UK but I am guessing the £2.6m relates to a number of years' of pre-tax profits.
