NON-PROFIT ORGANISATIONS AS A TOOL FOR NOT PAYING TAXES

NON-PROFIT ORGANIZATIONS AS A TOOL FOR TAX NEGLIGENCE Some time ago, Denník N published an article dealing with the tax status of the British International School, a non-profit organization (“British School”) in Bratislava. According to the article, the British School was to generate profits which it did not tax, and the profits were to be paid out by its founder through the continuous receipt of loans from the British School. It is alleged that up to €30 million was not taxed by the British School. At least this figure is evidenced by the 31 August 2023 accounts of both the British School and British International School Bratislava s.r.o., its founder (“the Founder”). Although this practice of the British School was intended to work over the long term, the passivity of the Revenue can also be interpreted as a signal and a guide to other market participants on how not to pay income tax, dividend tax and, in some cases, VAT. Therefore, for example, the following tax-optimisation needs of entrepreneurs could be addressed by the following solutions and at the same time might not even be perceived as controversial. Read more in my next newsletter.