Madeleine Fund end of year accounts 2016-2017 delayed.

[slartibartfast]

Set up many charities, have you Slarti ?

Been involved in a few yes, why?

[Robittybob1]

no company pays income tax.......the company could claw back the income tax paid by the contributers which is around 20 % if it was a charity

That sounds different to what happens here.  In NZ it is the persons making the donations that get the tax refund.

[slartibartfast]

again...how do you know what consultation took palce...more assumption....the fund is solely for Maddie and therefore could not have charitable status...that doesnt take long to discuss.

See Alice’s post.

[Mr Gray]

And decide it was the right choice to make it a charity then.  I don't see a reason why surplus funds couldn't be placed in a charity in the future.  There might come a time when the fund is turned into a charity.

It was not the right choice to make it a charity given the aims of the fund but the mccanns said if the aims of the fund were met..ie ..maddie recovered ...any funds would then be used for seraching for missing children in general

so to all the doubters...why when people raise money for medical treatment for a particilar child do they not seek charitable status ...after a lengthy discussion with the CC and reclaim any tax paid...teh answer should by now be obvious

[Mr Gray]

See Alice’s post.

  ive seen it but understood the implications long before


Specialist charity lawyers Bates, Wells & Braithwaite spoke to the Charity Commission about the issue. "The fund was set up partly to keep the parents in Portugal," a commission spokeswoman said. "We said that if that was the purpose, it would not be charitable because it is not for the public benefit."

[G-Unit]

  ive seen it but understood the implications long before


Specialist charity lawyers Bates, Wells & Braithwaite spoke to the Charity Commission about the issue. "The fund was set up partly to keep the parents in Portugal," a commission spokeswoman said. "We said that if that was the purpose, it would not be charitable because it is not for the public benefit."

How interesting! It wasn't just because it was for one child then? That's the first time I've seen anyone admit that it was for parental expenses.

[Mr Gray]

How interesting! It wasn't just because it was for one child then? That's the first time I've seen anyone admit that it was for parental expenses.

The fund was quite clear in its aims....one of which was to support Maddies family...Im surprised you were not aware of this

[Robittybob1]

How interesting! It wasn't just because it was for one child then? That's the first time I've seen anyone admit that it was for parental expenses.

That seems reasonable - running shoes wear out, tennis rackets get broken.

[G-Unit]

The fund was quite clear in its aims....one of which was to support Maddies family...Im surprised you were not aware of this

I knew that. It's never been given as one of the reasons for setting up the Fund as a limited company though. I wonder which of the rather vague headings include this 'family support'?

[Robittybob1]

no company pays income tax.......the company could claw back the income tax paid by the contributers which is around 20 % if it was a charity

Income tax might not have been the right word, but does "tax on the profits" make sense.  Wouldn't a company have to pay tax on it's profits.
Google result "Net Profit. The net profit for your business equals the gross profit minus expenses for items such as rent, depreciation of assets, wages, taxes, utilities, supplies, insurance and licenses. The IRS also calls net profit “ordinary business income.” This is the amount you'll pay tax on."  Whereas a charity would be exempt from that "Do charities have to pay tax on donations?
As a charity you can get certain tax reliefs. ... Charities don't pay tax on most types of income as long as they use the money for charitable purposes. You can claim back tax that's been deducted, eg on bank interest and donations (this is known as Gift Aid)."

[Robittybob1]

I knew that. It's never been given as one of the reasons for setting up the Fund as a limited company though. I wonder which of the rather vague headings include this 'family support'?

One of the headings has the word "subsistence" in it.
No mention of tax there.  Maybe donations aren't considered income but I'm sure they are here. 

[Mr Gray]

Income tax might not have been the right word, but does "tax on the profits" make sense.  Wouldn't a company have to pay tax on it's profits.
Google result "Net Profit. The net profit for your business equals the gross profit minus expenses for items such as rent, depreciation of assets, wages, taxes, utilities, supplies, insurance and licenses. The IRS also calls net profit “ordinary business income.” This is the amount you'll pay tax on."  Whereas a charity would be exempt from that "Do charities have to pay tax on donations?
As a charity you can get certain tax reliefs. ... Charities don't pay tax on most types of income as long as they use the money for charitable purposes. You can claim back tax that's been deducted, eg on bank interest and donations (this is known as Gift Aid)."

if there were profits...any money spent as per the aims of the fund count as expenses

[Robittybob1]

if there were profits...any money spent as per the aims of the fund count as expenses

So are they paying tax?  There seemed to be a big surplus the first year.

"Are grants and donations taxable income for corporation tax?"   The answer here seem to suggest they should.
https://www.accountingweb.co.uk/any-answers/are-grants-and-donations-taxable-income-for-corporation-tax

[Mr Gray]

So are they paying tax?  There seemed to be a big surplus the first year.

"Are grants and donations taxable income for corporation tax?"   The answer here seem to suggest they should.
https://www.accountingweb.co.uk/any-answers/are-grants-and-donations-taxable-income-for-corporation-tax

perhaps one of our resident accountnts could tell us

[Robittybob1]

It might be the "not for profit" status that means they don't need to pay tax on their surpluses.
http://www.findmadeleine.com/about_us/madeleines-fund.html
"About the Fund

Madeleine's Fund - 'Leaving No Stone Unturned' is a not-for-profit company which has been established to find Madeleine McCann, support her family and bring her abductors to justice. The Fund is following best practice governance procedures as set out in the Good Governance Code for the Voluntary and Community Sector. The directors of the company are Brian Kennedy, Michael Linnett, Edward Smethurst, Jon Corner, Kate McCann & Gerry McCann. They have appropriate legal, business and charitable experience. An experienced Fund Administrator has been appointed to ensure the highest standards of transparency and accountability. This should enable the Directors to maintain an appropriate governance distance in the day-to-day operations of the Fund."

So we need to see what the rules are in the "Good Governance Code for the Voluntary and Community Sector".