Business seeks donations to help pay taxes??
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Anonymous
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http://www.javagreen.net/
"For the past few years, Java Green and Cafe Green have struggled to keep our doors open through the recession. Though we have made some headway, as far as the DC Tax Office is concerned, we have not been able to provide them with the amounts they have expected of us." How about "we didn't pay our taxes" instead of blaming the government? |
Anonymous
| I guess they put the weekly/monthly employee payroll ahead of saving end of they year tax money, OP. It's hard to fault them for that. It's how a lot of businesses go bust. |
Anonymous
| NP here. I agree that it's hard to fault them for that, but their wording makes it sound like the DC government is money grubbing, when in reality, the businesses just haven't been able to afford the taxes they owe. |
Anonymous
| I like Java Green, but I don't have too much sympathy for businesses that don't pay their taxes. The tax would be on the profit *after* paying employee payroll, so it really shouldn't impact their weekly payroll if they were planning ahead. |
Anonymous
Their taxes should be on all sales rung up. |
Anonymous
But would expenses (payroll, overhead, etc.) be deducted from the sales tax at the end of the year? |
Anonymous
meant to say wouldn't |
Anonymous
No. |
Anonymous
| How is this any different from me, an employee at the company, saying "I just didn't set aside enough money this year to pay taxes. Please give me money so I can pay the government." |
Anonymous
It's not. It's no different from a "Rent Party" which used to be common back in the 1920s and 1930s or a Mortgage Party, or any other request for assistance. It's a small business. It's not a corporation. Look, I'd rather lend a hand to a small business. Small businesses are dying in this country. You can look at this and smirk and say who cares and shame on them, but when this business is gone, it's gone. |
Anonymous
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I'm not really understanding where this thread is going.
There is nothing underhanded or mysterious and there is no "hidden agenda" to what this business is doing. Yes, they are asking for a handout. They need money to pay their taxes -- because they cannot pay their taxes. What is the big deal? People are acting as if there is something creepy or shameful going on here. Yes, they do not have enough money to pay their taxes, and yes, they are asking for help. Yes, and Yes. End of story. |
Anonymous
| I wonder if Java Green will have to pay taxes on any donations they receive, or if they will be considered tax deductible... |
Anonymous
Presumably, they have to pay 2 sets of taxes: 1) Sales tax that is added to every purchase. This was never theirs to begin with, they're just the ones tasked to collect it for the government. 2) Business income tax on their profits (from which they would deduct expenses, payroll, etc). I have no problem with asking for donations, but I have no intention of giving them any money either. And I do think their wording is very much implying that the government is being unreasonable for doing it's job. |
Anonymous
| As a vegetarian Korean who LOVED eating there (it was extremely pricey though!), I have to say that something about this just doesn't sit right with me. I don't know if it was intentional, but at the very least, seems like gross negligence. |
Freeman
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No, these are two entirely different sets of taxes. A sales tax is imposed on just that, sales. That amount is charged on top of the cost of the products sold and goes straight to the entity imposing the tax.(This may be monthly, quarterly, whatever, but the business should never touch this money for their own purposes) Deductions, expenses, etc., are applied against income taxes to determine if you actually owe taxes, and if so, how much, just like with your personal income taxes. That being said, I don't think Java Green has good management, which would make me hesitant to support them. From the various articles I've read, they owe taxes dating back to 2010. They've nearly been evicted for non-payment of rent(No idea if they are current on rent now or not, but I don't consider it likely) and had issues with other bills. The businesses were for sale at one point, but I don't think there were any takers, which is another bad sign. It looks like taxes are only one part of their problem, and I would be very leery of where any money given to them will actually end up. |