Qld Cup - Prize Fund
- Thread starter Jez
- Start date
Brenton_Davy
900Global bowler
I would figure that, given AMF took a BIG loss at Cannington having only about 59 entries, that would be the reason. Their national tournament budget only spreads so far and the prizefund in Perth wasnt slashed too much at all compared to what it COULD have been. They made up a bit at the AO but nowhere near enough to make up the shortfall.
Being over budget for entries at the AO was nowhere near enough to make up the shortfall. Might be wrong, but I reckon that might be why.
Being over budget for entries at the AO was nowhere near enough to make up the shortfall. Might be wrong, but I reckon that might be why.
wchester
Bowling Tragic
graham said:
GST on the prize fund?????
You've got to be kidding me mate...That's the most absurd example of creative accounting that I have ever seen. You mean the government charges us GST simply because AMF holds our money for a few hours before disbursing it all back to the bowlers?
Oh yeah..and $5,940 in bowling revenue for a day and a half ain't too bad either. I wonder if the bowls have done that well during any other weekend this year.
GST is 10%. 2520, is believe it or not, 10% of 25200. We pay tax ON EVERYTHING! Everything you pay for at the supermarket is taxed, every time a mechanic fixes your car your taxed. Any Good or Service (hence the Goods and Services Tax) is taxed. I would list allowing people to use your bowling alley is a Service, hence the reason why we paid 10% tax only on the entries.
So Wayne, your statement of
is wrong. The government doesn't tax us for that. They tax us for the Service we are using. The Bowling Alley.
Thats my understanding of it all.
Later Da Cowman!
Dj bruv on da mix
Member
Just thinking out loud!, But would there be some way that Amf Could set up some kind of Tournament commitee (separate entity), So that GST would not have to be payed...hopefully you guys knows what i mean here 
as this would put an extra 15k into the Super 6 series, maybe a lower entry fee or increased prize pay out, which would benefit all bowlers and would make these events even more attractive than they already are.
Just a thought
Bruv
as this would put an extra 15k into the Super 6 series, maybe a lower entry fee or increased prize pay out, which would benefit all bowlers and would make these events even more attractive than they already are.Just a thought
Bruv
wchester
Bowling Tragic
graham said:
Two points about this taxation:
1) AMF need only to publish in their entry forms that the lineage cost to the bowlers is nil. (covered by the "added sponsorship" money)..thereby avoiding the need to pay GST on the cost of the games.
2) In the event that AMF won't take the above stand. GST only needs to be paid on the lineage income of $5,940 NOT on the prize fund portion of the entry fees. Therefore the GST will amount to $540..which is considerably less than Graham's figure of $2,520.
I'm pretty sure any tax lawyer will agree with my interpretation of the GST laws.
Also..just to make a correction on the GST amount provided by AMF..$2,520 is NOT a correct amount. The correct amount is actually $2,291
That's your free math lesson for the day..
Andrew S.
Gold Coast
I think the only way GST can be avoided is if your turnover is under $50,000 and you have not registered with the Feds to pay GST.
A tournament committee which is a separate entity from AMF might be an answer if it doesn't handle amounts of over 50k in a year, but the tax man could argue that it was under the AMF Umbrella and therefore the turnover would exceed the ceiling.
TBAL has a tournament Committee to handle the Nationals and TBAL tells us that that Committee is a separate entity. I don't know if that is for GST purposes or not.
A tournament committee which is a separate entity from AMF might be an answer if it doesn't handle amounts of over 50k in a year, but the tax man could argue that it was under the AMF Umbrella and therefore the turnover would exceed the ceiling.
TBAL has a tournament Committee to handle the Nationals and TBAL tells us that that Committee is a separate entity. I don't know if that is for GST purposes or not.
Shayne Melton
Member
All the bullshit about GST still does not solve the problem with the prize pool. Yhe other super 6's had to pay GST. Maybe TBA expect less Victorian donations.( I mean entry's ).
Tiger Bottomley
"Lord of the jungle"
GST
Graham's figures are pretty close in respect to GST. GST is 1/11 of the total entry fee. Total Entry around $30k total GST to the Gov a tad under $3k. There are a couple of ways it can be altered but they are very combersome. Involved is setting up a committee quite seperate from AMF to handle only prize money and with the $50K ruling you would need seperate committees in each state for each tournament.
You could take responsibility away from AMF and basically just rent their centres but then you risk losing all their sponsorship altogether.
I know AMF have looked into this quite deeply and there really isn't a way to stay within the law and reduce the GST component.
Sorry dont make the rules only enforce them.
Graham's figures are pretty close in respect to GST. GST is 1/11 of the total entry fee. Total Entry around $30k total GST to the Gov a tad under $3k. There are a couple of ways it can be altered but they are very combersome. Involved is setting up a committee quite seperate from AMF to handle only prize money and with the $50K ruling you would need seperate committees in each state for each tournament.
You could take responsibility away from AMF and basically just rent their centres but then you risk losing all their sponsorship altogether.
I know AMF have looked into this quite deeply and there really isn't a way to stay within the law and reduce the GST component.
Sorry dont make the rules only enforce them.
Tiger Bottomley
"Lord of the jungle"
Organisations
IT is possible but even if the $50K level doesn't get you Non Profit entities still register at $100K. The time involved in setting up an approriate organisation and the $s involved would outway any benefits.
IT is possible but even if the $50K level doesn't get you Non Profit entities still register at $100K. The time involved in setting up an approriate organisation and the $s involved would outway any benefits.
Just a question for anyone knowledgable on the subject.
Seeing that GST is payable on the prizefund part of the entry fee and this is then paid back to the bowlers, does AMF then write this off as a loss on their tax, as a deduction from the gst payable???
If this is the case, is the sponorship from AMF really just us getting back the gst part of the prizefund they have claimed as a deduction??
AMF's sponsorship is valued in these events, I'd loke to ask the question of all events that have to pay gst and can claim the loss of prizefund (seems a strange way to refer to it), is this money put back into the prizefund or taken as extra profit for the centre??
Hoping not to open too bigger can of worms here
Chris Thomas
Seeing that GST is payable on the prizefund part of the entry fee and this is then paid back to the bowlers, does AMF then write this off as a loss on their tax, as a deduction from the gst payable???
If this is the case, is the sponorship from AMF really just us getting back the gst part of the prizefund they have claimed as a deduction??
AMF's sponsorship is valued in these events, I'd loke to ask the question of all events that have to pay gst and can claim the loss of prizefund (seems a strange way to refer to it), is this money put back into the prizefund or taken as extra profit for the centre??
Hoping not to open too bigger can of worms here
Chris Thomas
stormy
Quo Vadis
There are a couple of point that really need to be clarified.
1. the money collected is divided into two parts
a) linage - tax I belive is incorporated within that
b) prize fund - no tax (no gst)
2. sponsorship - money is given by AMF no gst on that
so does that mean any association that runs a tounament could get hit with a bill from the TAX office?
[/quote]
1. the money collected is divided into two parts
a) linage - tax I belive is incorporated within that
b) prize fund - no tax (no gst)
2. sponsorship - money is given by AMF no gst on that
so does that mean any association that runs a tounament could get hit with a bill from the TAX office?
[/quote]
