Donated to charities to evade tax

elmo · Apprentice Joined: 23 Apr 2008 Posts: 8

I’d like you to tell me whether this is possible. I’m running a small firm but my wife runs a charity. I don’t have large income but still it is not small too. Still, I’d like to keep but not to hide part of the profit from the tax authorities. I think that if I give as a present that part to the charity, I won’t have to pay tax on that and than my wife will give it back to me.

lonni · Apprentice Joined: 20 Apr 2005 Posts: 10

While I was reading the post I thought: What a generous man! But you’re not generous at all, why is it so hard to give money to the charity without any other expectations? Have you ever done that? What does your wife think of that idea? I don’t think she’s glad that she has such a person for her husband. You are right that the income that goes to the charity is not taxable, so maybe your plan will have much success. But on the other side there are tax authorities that won’t let this cheat pass so smoothly. You must be very wise and make sure that the other side which is the charity organization, will support you completely, even lie if necessary.