On Tue, 30 Jul 2002, Orna Agmon wrote: > If I understand correctly, another difference is that an Amuta is not > supposed to make profit, so it should be perfectly bllanced at the end of > each year: you cannot use money you have collected this year, for another > year's expenses. > >
Acording to my acountant this is not the case. He sais that the huge difference on this issue is that the Amuta does not have to pay taxes on its "profit". but as I understand it cannot give dividend either so the only thing it can do with its "profit" in one year is to use in the comming years covering its "loss". Which if you translate to human talk means that in the long run you are going to be ballanced as you cannot function if you always have less money than what you spend and you have nothing to do with the extra money. Well, except to fund your favorite politican :) So a company can transfer its loss in one year to the next year and reduce its taxable profit in the comming years by the loss in earlier years (to a certain extent) but cannot 'untax' a previous profitable year by a loss later. On the other hand an Amuta can do both. So it is good to be an Amuta if you have profit and it is good to be a company if you are loosing money :-) I think this latter was the principle idea of the .com years. -- Gabor ================================================================= To unsubscribe, send mail to [EMAIL PROTECTED] with the word "unsubscribe" in the message body, e.g., run the command echo unsubscribe | mail [EMAIL PROTECTED]
