Wnder how Americans get tax

relief using losses generated by Scottish football clubs? How does the system work. US profits £5m, tax at 20% means tax bill is £1m. Scottish football team loss say £1m. Does that mean the net profits are calculated at £4m and therefore tax bill is 20% of £4m or £800k.
It doesn't seem a great deal of benefit to save £200k.
Surely they can't use a £1m loss in Scotland to wipe out a £1m tax bill in the US? I have expressed everything in £ sterling to keep it simple.

Quote:

---

Originally Posted by BCram

relief using losses generated by Scottish football clubs? How does the system work. US profits £5m, tax at 20% means tax bill is £1m. Scottish football team loss say £1m. Does that mean the net profits are calculated at £4m and therefore tax bill is 20% of £4m or £800k.
It doesn't seem a great deal of benefit to save £200k.
Surely they can't use a £1m loss in Scotland to wipe out a £1m tax bill in the US? I have expressed everything in £ sterling to keep it simple.

---

No idea.

I remember someone stating at a Dee4life AGM that American companies can have a 100% tax write off of profits they make from sports companies then own.
However if this is correct then it no use to Tim Keyes as apart from the year ending 31st May 2021 Dundee Football Club Limited have made a loss every financial year after FPS purchased a majority shareholding in Dundee Football Club Limited.