THE REAL TRUTH PLEASE READ: FFC Khan's Tax Inversion Beneficiary

[The Rock]

This is the Rock. I am a trader on Wall Street and many of you know me from the Lion, or Rockwell's , Bricklayers (great ale) when I am in town and so on... something needs to be known. I know how international taxation works and loops in tax codes etc...

In the US there is a lot of chatter going around about tax inversion. Investors are dealing with US gov't ruling on future tax inversion. What does that have to do with Fulham? Inversion is were you can be from the US and base a company "offshore" (in the UK) and have it's primary operations/owner in the US. The "offshore entity" enables you to take profits or accrue losses and the taxation on these events are far more beneficial to a US owner than having an "onshore" entity (in the US)...

Don't be fooled. Khan is using FFC as a greater tax write off than a like entity based in the US. The business model dovetails perfectly with the Jacksonville Jags and essentially divert Fulham losses to sustain his other sporting or general investment interests. Essentially, we are a taxation pawn and his investing history points to maximizing profits.  

Felix Magath is the perfect manager. He helps Khan realise those losses and from a financial fair play standpoint he's spent zero (notice the transfers out have or will match McCormack's and a few other's fees?). It is in Khan's best financial interests to spend nothing and run us into the ground and use the taxation loss/benefit against gains elsewhere.

Thankfully tax inversion rules may be changing in the states at some point, but not soon enough. This is the real truth. Please try and prove me wrong, I'm afraid you can't. Bitter bitter pill to swallow and I am sad.

[BedsFFC]

Take me home al fayed...

[Lighthouse]

Oh well I will return to my original thoughts on our new owner then.  090.gif

[Fulham Paul]

There are less public ways of saving tax. I am yet to meet any successful business owner who would entertain the possibility of being regarded as a failure just to save tax. He didn't look too happy with Felix at the cottage this evening!

[mangoputney]

This is the Rock. I am a trader on Wall Street and many of you know me from the Lion, or Rockwell's , Bricklayers (great ale) when I am in town and so on... something needs to be known. I know how international taxation works and loops in tax codes etc...

In the US there is a lot of chatter going around about tax inversion. Investors are dealing with US gov't ruling on future tax inversion. What does that have to do with Fulham? Inversion is were you can be from the US and base a company "offshore" (in the UK) and have it's primary operations/owner in the US. The "offshore entity" enables you to take profits or accrue losses and the taxation on these events are far more beneficial to a US owner than having an "onshore" entity (in the US)...

Don't be fooled. Khan is using FFC as a greater tax write off than a like entity based in the US. The business model dovetails perfectly with the Jacksonville Jags and essentially divert Fulham losses to sustain his other sporting or general investment interests. Essentially, we are a taxation pawn and his investing history points to maximizing profits. 

Felix Magath is the perfect manager. He helps Khan realise those losses and from a financial fair play standpoint he's spent zero (notice the transfers out have or will match McCormack's and a few other's fees?). It is in Khan's best financial interests to spend nothing and run us into the ground and use the taxation loss/benefit against gains elsewhere.

Thankfully tax inversion rules may be changing in the states at some point, but not soon enough. This is the real truth. Please try and prove me wrong, I'm afraid you can't. Bitter bitter pill to swallow and I am sad.

+1

Bet your not far off Rock

[nixie-ffc]

didnt maf say he would buy us back 3 months ago?

[AnotherVicHalomLoveChild]

A sort of Mel Brookes Producers but in reverse?

[God The Mechanic]

Why did he spend (up to) £11million on Mitroglou in January then?

[MrProphet]

Why did he spend (up to) £11million on Mitroglou in January then?

I feel that answering the meaning of life mite be easier then that. Regardless of his motives I wreckon he's spent the 7 months after headbutting a wall while asking himself the same question

[The Rock]

Just maybe he spent money on Mitro because he knew he was getting a faulty product to take the tax loss?

I'd like to think that Khan wants to be successful with us. West Ham, Villa, and Utd owners I think are all Americans, and now Khan is a second class citizen to them and ego shattered with a team floundering in the Championship as the others are able to establish a favorable tax event while remaining in the top flight.

Khan should hire me to maximize profits (though he's doing a pretty good job of doing that already at the cost of FFC).

[Greek]

Why did he spend (up to) £11million on Mitroglou in January then?

All counts towards the loss. This is the first honest post I have seen on this forum. The whole think stunk from day 1.

[BarryP]

Hi my name is BarryP and most of you on this forum don't know me from Adam outside of this forum but I am a CPA and corporate tax accountant. I can tell you in general that US initited corporate tax inversions are largely about shuffling paperwork and addresses to reduce the amount of income you are required to report on a company's US tax return. What happens in a corporate inversion is an existing corporation targets and buys a foreign corporation in a low tax country. The purchasing company then must declare a tax home upon merger which will of course be the low rate country. It is not uncommon for an inversion to have no to little impact on the day to day operations of either the target or acquiring corporation. There can of course be other tax motives and concepts involved in any merger.

While I can't speak with certinty about Mr. Kahn's tax structures I have heard rumors FFC ownership was originally established in a tax safe haven outside the US so I can't fathom what an inversion conversation would have to do with anything other than pot stirring. However, I can with certainty tell you that unless you are more than casually familiar with the tax concepts and specific entities involved in any given transaction you are more  than likely spouting nonsense when you comment on said transaction.

[love4ffc]

Hi my name is BarryP and most of you on this forum don't know me from Adam outside of this forum but I am a CPA and corporate tax accountant. I can tell you in general that US initited corporate tax inversions are largely about shuffling paperwork and addresses to reduce the amount of income you are required to report on a company's US tax return. What happens in a corporate inversion is an existing corporation targets and buys a foreign corporation in a low tax country. The purchasing company then must declare a tax home upon merger which will of course be the low rate country. It is not uncommon for an inversion to have no to little impact on the day to day operations of either the target or acquiring corporation. There can of course be other tax motives and concepts involved in any merger.

While I can't speak with certinty about Mr. Kahn's tax structures I have heard rumors FFC ownership was originally established in a tax safe haven outside the US so I can't fathom what an inversion conversation would have to do with anything other than pot stirring. However, I can with certainty tell you that unless you are more than casually familiar with the tax concepts and specific entities involved in any given transaction you are more  than likely spouting nonsense when you comment on said transaction.

Ya, what he said...

I think the conspiracy blokes are at work here....

yes...

maybe...

[Forever Fulham]

I practiced a smattering of tax law in a past life, and I try to keep up with what's current.  I've been following the 'inversion' phenomenon, because a drugstore chain stock I owned (until a few weeks ago) -- Walgreens's (which I think is still in the process of buying Boots) -- was trying to buy a drug retail company in Britain whereby it could avail itself of preferential tax treatment.  But, Rock, I think you are completely wrong about Khan re: your suggestion that he's trying to use FFC as a front of some kind to create an offshore tax haven.  The facts don't work.  The Jaguars and his auto parts business have their own wholly distinct corporate structures.  And those businesses have nothing to do with English football.  I'll do a little research on this, but I'm positive you can't create an inversion scenario out of such disparate businesses.  I've never heard of a single sports franchisee which was able to shoehorn its business into an offshore tax haven by buying a wholly unrelated sports club in another country.  Further, it is probably illegal to attempt to offshore the HQ of a U.S. sports team.  It's probably a breach of the franchise agreement for one thing.  Plus, English corporate tax rates are much higher than U.S. corp tax rates, making that theory silly in its impracticality.  Ireland maybe.  England, no.  This is all so much conspiracy talk. 

[bmasar]

This is the Rock. I am a trader on Wall Street and many of you know me from the Lion, or Rockwell's , Bricklayers (great ale) when I am in town and so on... something needs to be known. I know how international taxation works and loops in tax codes etc...

In the US there is a lot of chatter going around about tax inversion. Investors are dealing with US gov't ruling on future tax inversion. What does that have to do with Fulham? Inversion is were you can be from the US and base a company "offshore" (in the UK) and have it's primary operations/owner in the US. The "offshore entity" enables you to take profits or accrue losses and the taxation on these events are far more beneficial to a US owner than having an "onshore" entity (in the US)...

Don't be fooled. Khan is using FFC as a greater tax write off than a like entity based in the US. The business model dovetails perfectly with the Jacksonville Jags and essentially divert Fulham losses to sustain his other sporting or general investment interests. Essentially, we are a taxation pawn and his investing history points to maximizing profits.  

Felix Magath is the perfect manager. He helps Khan realise those losses and from a financial fair play standpoint he's spent zero (notice the transfers out have or will match McCormack's and a few other's fees?). It is in Khan's best financial interests to spend nothing and run us into the ground and use the taxation loss/benefit against gains elsewhere.

Thankfully tax inversion rules may be changing in the states at some point, but not soon enough. This is the real truth. Please try and prove me wrong, I'm afraid you can't. Bitter bitter pill to swallow and I am sad.

How can we prove you wrong when you provide no facts to disprove? All you have done is say you work on Wall Street and that tax inversions are a thing.

[BarryP]

US corporate rates are currently higher than any developed country in the world including Britian Forever. Most other countries have had some kind of reduction.

[Deanothefulhamfan]

Interesting thread, with some pretty detailed response's.....

I have been a believer in Khan since he took over, and I will continue to support him until proved wrong ( he needs to invest before the window closes, as I may change judgement somewhat )

I hope the Rock's theory is purely an educated theory but an incorrect one at that, and that Khan does have Fulham's best interests at heart.

Time will tell

[Forever Fulham]

High taxes on paper only are not high taxes.  The U.S. tax code is littered with loopholes which make the effective tax rate far less than the stated rate.  expert-debunks-claim-us-corporate-taxes-are-high

[Forever Fulham]

Link failed to copy in last post.  Here: http://www.cbsnews.com/news/expert-debunks-claim-us-corporate-taxes-are-high/

[Jimpav]

I suggest you change your subject title - quite a strong allegation to be branding as truth however accurate it may or not be.