retired_jmv91

How are the taxes calculated in this game? Im my current season my total income has gone down about 10%, but I'm paying almost double taxes compared to previous season?

retired_w0lfpack1

Uh.. I don't think we can answer that for you. SI have said that they have different tax calculations for different nations, depending on their understanding of business tax law for that nation.

In some nationalities, taxes would be proportional to your profit, not your total income.

. . .

Incidentally, I was paying close attention to the financial side during FM'05. I noted that in some years, end-of-season activities such as television revenue (which, at the time, came in as a lump sum) would get scheduled to the year concluding, and sometimes they would get scheduled to the year beginning.

So, if the annual TV income were £10M, I might see that applied as follows:

2010/11: £10M
2011/12: £20M
2012/13: £ 0M
2013/14: £10M

Taxes, however, were calculated on the per-season basis, so this played havoc with my ability to predict what tax payments were going to be. Obviously, for taxes based on the 2011/12 season, taxes would be very high .. but taxes based on the 2012/13 season would be much lower.

I also think that the game's got some real confusion between "Cash Flow" and what a business would call "Profit and Loss". For example, investing £10M in a player does not mean that the club "lost £10M" .. it means that the club converted £10M into an asset - the player. If the club then proceeded to sell the same player on for £5M, yes, you would say that they lost £5M on him. However, the game looks at that as "lost £10M", "made £5M" .. which is subtly wrong.

retired_hennapayne

finances are just a snapshot of what the finances are currently its the same as any business, its not an accountants job to evaulate whether the decision to buy was good or not, its just to show a snapshot of finances in time. Taxes in a football club are very wierd as you dont pay tax on buying players, and most of the taxes you have to pay in real life can be claimed back in certain ways. But remember if you have 500m in the bank, and your gaining intrest off that, then you have to pay tax on the intrests, thus if you got more money in the bank it would seem your taxes are increasing. Hope this helps.

retired_helkoussi

coorporation tax is 40%

retired_helkoussi

sorry its 30% my mistake

retired_e.redwan

Smaller clubs would pay less than 30% (of profits) if their turnover was relatively small.

But in the game I get 39% as Leeds.. not sure if I'm being over taxed and I get a rebate later or what.

Would be useful for someone to answer this as it comes up every week and nobody has a clue.