Folau turns back on Eels to play rugby union

[Raider_69]

you're probably right, but it is not necessarily the case that the donation is tax deductible. Also the value of tax deductions depends on your effective marginal tax rate, and the last time I had my head in the books of clubs, their effective tax rate was bugger all.

From a salary cap perspective, though, it might work.

Also depends on whether the 'donation' approach is recognised as equivalent to the 'tithe' approach by his religion. I'm sure it's been tried before.

its more about cap space i guess
what ever you get back from the donation is what it is, be it a dollar or $150 000
its more than you'll get back if its put in Izzy's hands

but a donation, as long as its not contractually obligated, means the SC auditors cant touch you and it saves a clear $150k on the cap. They will investigate but as long as the donation is made on the promise of anonymity. Your sweet

 

[Someone]

Parramatta Eels : Praying their way to a premiership.

 

[Barry O'Speedwagon]

its more about cap space i guess
what ever you get back from the donation is what it is, be it a dollar or $150 000
its more than you'll get back if its put in Izzy's hands

Sure, my point re the tax deduction is that one would normally shift the net taxable income to the party who pays the lowest marginal tax rate (in this case the club).This way one can usually negotiate a better deal for both parties. e.g.. from a tax point of view Izzy would benefit from the donation by 150k x his (his company's) tax rate. A club making a donation benefits by $150,000 x their effective tax rate (which certainly used to be pretty low after various allowances are considered). However, the salary cap is the major concern here (as we've agreed).

 

[oldmancraigy]

Pretty sure churches don't qualify as tax deductible organisations. So let's leave that train of thought behind and move on to another one?

 

[The Elephant In The room]

Bring on 11am!

 

[strider]

oh yeah - wednesday!!!

 

[Gronk]

Are we there yet ?

 

[mickdo]

Pretty sure churches don't qualify as tax deductible organisations.

The charitable 'funds' they run certainly do

 

[Maroubra Eel]

Poupou should be able to clear it all up for us.

 

[Poupou Escobar]

Yes, they are.

 

[Barry O'Speedwagon]

The charitable 'funds' they run certainly do

That's right. The donation needs to go to an entity on the Deductible Gifts Register.

 

[Haynzy]

Like The Red Cross, Animal Welfare League, Mission Australia, World Vision etc

 

[Poupou Escobar]

That's right. These charities are given taxation advantages because they provide social services that governments can't afford to.

As we have less children and live longer, Western society will rely more and more on charities to fill the gap as governments buckle under the welfare burden imposed by the ageing population.

This is also why we need immigration.

 

[TheRam]

But only the right type of immigration Pou.

 

[Poupou Escobar]

You mean skilled migrants or people without external loyalties?

 

[Ratchy]

it would absolute lunacy to pay Izzy money that he intends to donate

as stated above, give him the $450k, donate the $150k, its tax deductable and it saves you $150k on the salary cap. The church wont care who's names on the cheque and no one will be under the illusion it's a result of anyone other than Izzy. Except you can recoup some of it and it saves you 150k in cap space

Without being an expert on the cap It still would be counted towards the cap as the payment would be used to attract Folau to the club....i'm sure if clubs were allowed to do it they would've long ago.

 

[emjaycee]

You would have to think that the longer this drags out the less chance we have of securing Izzy for 2013.
Hopefully the delay is only caused by needing to get NRLC sign-off on some conditions of the contract and not on the actual offer we have made.

 

[Kornstar]

You would have to think that the longer this drags out the less chance we have of securing Izzy for 2013.
Hopefully the delay is only caused by needing to get NRLC sign-off on some conditions of the contract and not on the actual offer we have made.

That is my way of thinking too

If he really wanted to be an Eel, he would already be and no one would have to be working madly through the night to make it happen!

 

[Gronk]

Prolly more to do with Ian Schubert & Co. IIRC the (initial) Inglis bunnies contract dragged on for weeks/months.

 

[The Colonel]

The fact his manager has been suspended for six months for his involvement in the Melbourne
Scandal cools have something to do with it as well.