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Showing posts from December, 2014

An accountant goes to the doctor......

An accountant knocks on the door of his doctor's surgery and walks in.
"Hello, doctor. Please help. I just don't know what's wrong with me. Goodbye." With that he turns around and walks out.
30 seconds later he is back. "Hello again, doctor. Please help. I just don't know what's wrong with me."

The Doctor looks up from his desk and says:
"Mmm. I think you have a serious case of double entry."

Tax issues for Santa to ponder

Santa's VAT adviser, who wishes to remain anonymous, says she has been pondering some key issues:

First things first, is Santa a taxable person? He is only active once a year (though it is a busy night and he visits a lot of countries!). Also his activity is carried out very regularly every year (he never misses). But is he carrying out an economic activity? Is he giving the presents away or are the mince pies and brandy left out for him (and the carrots for the reindeer) non monetary consideration (not to mention the requirement that the children have to have been good – which is surely priceless).

Is the letter to Santa a contract and what happens if one party (the child) fails to meet its part of the bargain (the aforementioned ‘being good’ bit). If the gifts left for each child in a household cost less than £50 and there is no consideration provided, can Santa claim the input tax on these without there being an output tax liability?

How should he value the work of the elves …