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Author Topic: Income Tax Witheld  (Read 678 times)

rubiohiguey

  • Former member
Income Tax Witheld
« on: October 04, 2013, 12:08:04 AM »
Everybody tries to minimize tax liability, in real life and in game worlds.

What are the options/strategies in airwaysim to minimize tax liability?

One more question: Is there a way to see what is the price the competitor has for a particular route? I could not find this information anywhere (maybe I was not looking well), but in real life this is a public information, where airlines can find out who charges what for where.
« Last Edit: October 04, 2013, 12:14:53 AM by rubiohiguey »

Online schro

  • Members
  • Posts: 4116
Re: Income Tax Witheld
« Reply #1 on: October 04, 2013, 01:48:41 AM »
Taxes are withheld on a monthly basis at your monthly profit * tax rate. At the end of the year, your tax "return" is done, and you'll get a refund of your tax overpayments. Therefore, to manage tax liability, try to end each month on a breakeven basis to maximize your operating funds. Keep in mind that the "month end" is always on a sunday, typically the first oen that falls in the new calendar month (or the last day of a calendar month). You can confirm by looking at the monthly income statement, and you might see, for example, that today (10/3/2013) would actually count as September 2013, and September 2013's earnings end on October 6th.

For pricing, no, you can't see. You can adjust pricing to see hwo it impacts the loads that you get and your competition's loads though.

Offline swiftus27

  • Members
  • Posts: 4395
Re: Income Tax Witheld
« Reply #2 on: October 04, 2013, 03:02:35 AM »
Aws is not GAAP   Always remember that

Mr.HP

  • Former member
Re: Income Tax Witheld
« Reply #3 on: October 04, 2013, 03:38:33 AM »
GAAP = Generally accepted accounting principles?

I take that you meant AWS doesn't use GAAP? That is a minus point of AWS, not having a good accountant system

Offline LemonButt

  • Members
  • Posts: 1895
Re: Income Tax Witheld
« Reply #4 on: October 04, 2013, 03:44:06 AM »
What are the options/strategies in airwaysim to minimize tax liability?

Monitor your revenue versus expenses using the annual income statement.  If you paid $20 million in tax on $60 million in profit, it is in your best interest to take a loan or do whatever you've got to do to add $60 million in expenses and break even (preferably through aircraft purchases that you can borrow against later if you need to).  If you do this, you will get a tax return of $20 million a couple weeks into the following year.

 

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