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Sri Lanka camps a `national disgrace`
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AnuD
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 13 Jun 2009 18:50:15 GMT Report for Abuse
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This is normal procedure that goes on from mid sized companies to big corporates.. IT is a pity that our Acconuts theoretician does not know this !
You can not fool with Taxes only if you are poor and dependent on employment income.
IT is not the same for businesses.
Here, I have talking business people to news papers saying they can avoid paying taxes even though their income is in millions. |
chennaiguuy
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 13 Jun 2009 18:55:32 GMT Report for Abuse
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wish the tax assesors of Sri Lanka are as stupid as their Indian counterparts..
Trust me, ther was no bribing done to the auditor. Just his regular fee of charges for every Annual IT return .
The Financial year of India ends every year on March 31st. So Bulk of the corporates purchases in the Financial quarter Jan-Mar only to show reduction in their profits & also to take advantage of Depreciation.
Computers have 40% Depreciation while Vehicles have abt 30%.
So they are purchased mostly in the Last Fin quater to manipulate the Accounts & also to take advantage of Depreciation ! |
chennaiguuy
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13 Jun 2009 18:58:13 GMT Report for Abuse
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You can not fool with Taxes only if you are poor and dependent on employment income.
IT is not the same for businesses.
100% !
Business man can think of 1000 ways of showing loss in his business & not pay taxes whereas Employed person cant do the same.
Employed persons end up losing abt 30-35% of their annual income as taxes to any govt which is not the case with business man.
Edited By - chennaiguuy - 13 Jun 2009 18:59:22 GMT |
slmate
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 13 Jun 2009 19:02:12 GMT Report for Abuse
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Trust me, ther was no bribing done to the auditor. Just his regular fee of charges for every Annual IT return .
The Financial year of India ends every year on March 31st. So Bulk of the corporates purchases in the Financial quarter Jan-Mar only to show reduction in their profits & also to take advantage of Depreciation.
Computers have 40% Depreciation while Vehicles have abt 30%.
So they are purchased mostly in the Last Fin quater to manipulate the Accounts & also to take advantage of Depreciation !
You dont have a clue about what you are talking..
If you have baught computers which you need to run your business and have charged depreciation on those assets, then there is no manipulation of accounts. The profit is the real profit you have earned.
What we are talking about here is on techniques to manipulate financil statements and show less profits when your actual profits are higher than that..
Google on window dressing financial accounts.. you can learn few tricks.. |
slmate
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13 Jun 2009 19:06:19 GMT Report for Abuse
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To give you an example, MY relation had a Profit of abt 5 Lakhs & if he had declared this entire amount as Profit, then he may had to pay abt 1.25 Lakhs as Tax to GOI.
To avoid that Computers were shown to be purchased for abt 3 Lakhs & finally he end up paying only 25,000 INR as tax to GOI.
If your intelligent relation bought the computers for 3 lackhs and charged 40 % depreciation, then his actual profits will reduce by 120,000..
You are only intelligent if your actual profit remained at 5 lacks and paid taxes for a profit of less than that..
Looks like all relations of Chennai are as stupid as him.. |
chennaiguuy
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13 Jun 2009 19:14:00 GMT Report for Abuse
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we are talking about here is on techniques to manipulate financil statements and show less profits when your actual profits are higher than that..
I told in the example that Computers were SHOWN to be purchased & not ACTUALLY purchased !
why Do Srilankans always Jump the gun ?
Looks like SL mate needs ENGLISH lesson as well as accounting lesson too...
This is just a case. When Enron & Satyam who are at heavy loss can show in their Balance sheet High profits, you think the reverse cant be true ?
Even Satyam had PWC as their auditors !
:-))
Edited By - chennaiguuy - 13 Jun 2009 19:18:30 GMT |
newwest
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 13 Jun 2009 19:23:00 GMT Report for Abuse
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I told in the example that Computers were SHOWN to be purchased & not ACTUALLY purchased !
shown to be purchased. lol. you cant record anything in your books till you have physical evidence that own the assets.
so what happened next year.
you should give up on accounting theory.
person who cooks is a cooker |
chennaiguuy
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13 Jun 2009 19:27:26 GMT Report for Abuse
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you cant record anything in your books till you have physical evidence that own the assets
u are too naive !
Lot of Corporates have inter-related companies thru which they manipulate all the purchases & sales...
Even Reliance Empire in India when it was divided between Ambani Brothers was Found to be having abt 100 Bogus companies. these Companies do transaction with Main Reliance company swindling its resources only to show less profit & to give less dividend to the share holders !
:-))
Edited By - chennaiguuy - 13 Jun 2009 19:28:48 GMT |
newwest
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13 Jun 2009 19:35:42 GMT Report for Abuse
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Chenni, do you have any accounting friend?
if so please tell them about your buying asset to reduce profit theory. Ask them if your comment is correct.
may be India it's possible but not anywhere else. only way we know is depreciation will reduce the profit. |
PrinceXX
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13 Jun 2009 19:39:31 GMT Report for Abuse
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Newwest,
You are from Srilanka. You know nothing about corporate culture. :) |
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