SPANIARDS BID REJECTED

[loudmouthblue]

I don't disagree that there would be money in them doing it, and supported you in regards to it being something that can be done.

Starbucks have all sorts of "licensing/trademark" deals, purchasing of beans etc. which make sure the money flows out of the UK and to where ever has less tax. A lot of companies are extremely creative with operating on loans, with the interest being paid to parent companies offshore and the interest being untaxable.

Its just I doubt if it'd make sense to do it on such a small scale, based on the time to set it all up correctly/cost of keeping that kinda thing going (and without mistakes) and might not be worth the effort for them right now (hence the lower bid).

I though they had lost the ability to do it because of the changes to free movement of workers due to brexit ?
I have no problem if it was a tax saving/avoidance scheme as long as it was legal and enabled us to survive and thrive in the future, but we won't know now what ever they planned, and I won't loose any sleep over that either.

 

[TRUE BELIEVER]

This is not fully true and would depend on the structure of the companies.

You are right in that you should pay tax based on the profit made within a country that you trade within, however it doesn't always work like that (Google, Starbucks etc.).

"transferring profits" is something that cant happen (its also a very very vague term), but a UK company charging a Spanish company for services rendered and the Spanish company therefore making very little profit, with the UK company making a lot would be very easy to do and is done by many companies.

There would also have been nothing to stop the source of profits (players) from being transferred to Wigan and then sold.

I do, however, doubt that the amount of messing around that would need to be done and the actual profit made from this kind of arrangement would have been worth it for the Spanish bidder.

I think you will find I conceded the point regarding player transfers to both Arthuritis and LMB in a previous post.

However I still disagree with LMB's assumption that by buying WAFC and setting up a Spanish subsidiary would qualify for the reduction in corporation tax. The scheme was set up as an incentive to create jobs in Spain and is not applicable to a non domestic operation.

The transfer of profits from one company to another in any form is illegal and no amount of creative accountancy can get round that fact. I understand your suggestion about rendering services for little profit and in fact suggested so in my reply to the post that LMB used the example of H J Heinz. They moved their head office from the UK to Europe but still maintain a manufacturing plant in the UK. Using the UK manufacturer to produce the goods they are then able to ship them at cost plus a minimal profit into Europe to avoid tariffs and pay lower taxes on profit.

So yes the football club could probably do the same. I said at the time that I would have a root around and see if there were any reasons it would not be practical.

As far as practicality goes the only reason I can see for this not being tried would be that it would be difficult to set up and run and as you say could involve a lot of time and cost. I did have the thought that as the profits would have to be paid as dividends to the shareholders for Moreno to benefit he would either have to be sole shareholder or have as co directors the other members of Leganes board. For instance if Leganes sell us a promising young player to be sold on by WAFC, how would that benefit the other shareholders/directors at Leganes as the profits could not be transferred back to Leganes if they have no interest in WAFC ?

Whilst I see what LMB is alluding to, I still feel that it is not practical to set up in the way he is describing and would be extremely complicated to operate and would possibly breach international trading or FIFA transfer regulations in some way. Although that would be something beyond my knowledge.

 

[springy-park]

Did the Spanish pay towards our bills, while this takeover was going on,
if so, can they claim this money back off us?

 

[moonay]

Did the Spanish pay towards our bills, while this takeover was going on,
if so, can they claim this money back off us?

They paid the deposit Springy ........ and given they've walked away, I presume it won't be refundable.

 

[springy-park]

They paid the deposit Springy ........ and given they've walked away, I presume it won't be refundable.

Cheers moonay, it's a complete nightmare for the fans,
trying to keep up with matters as to what is going on,
it seems we keep going round in circles and ending up back at square one,

 

[GSM]

Cheers moonay, it's a complete nightmare for the fans,
trying to keep up with matters as to what is going on,
it seems we keep going round in circles and ending up back at square one,

TBH I've gone full head in sand stuff. Can't be dealing with the mental gymnastics of reading any ol' shite on twitter/facebook/papers. Here's bad enough for someone who doesn't live remotely near the area anymore. One day BBC will post something and it'll be HOORAY or DOOOM and I'll deal with it then

 

[Zeb2]

That might be the wisest course of action .....just ‘head spinning’ up to now

 

[Yon Mon]

TBH I've gone full head in sand stuff. Can't be dealing with the mental gymnastics of reading any ol' shite on twitter/facebook/papers. Here's bad enough for someone who doesn't live remotely near the area anymore. One day BBC will post something and it'll be HOORAY or DOOOM and I'll deal with it then

That's the best thing to do. Don't believe anything you read or are told.
There's to many people claiming to be in the know.

Wait until a deposit is paid or the buyer is stood on the pitch holding a Latics scarf of shirt.

 

[springy-park]

TBH I've gone full head in sand stuff. Can't be dealing with the mental gymnastics of reading any ol' shite on twitter/facebook/papers. Here's bad enough for someone who doesn't live remotely near the area anymore. One day BBC will post something and it'll be HOORAY or DOOOM and I'll deal with it then

I live very close to the DW Stadium and i have asked Latics fans what's
going on and they are same as us, in the dark.