Tax

I'm managing tottenham and have about 35-40million in the bank, but on a monthly basis we lose money, every month it says the club made a loss of... and it's usually around 1.5-2million a month, when i went through the expenditure, we're paying 2-3million a month in tax, yet we're making a loss. the whole of last season we paid 29million in tax but yet lost money.

surely this is not realistic? is it a bug or what?

thanks

Tax isn't considered a loss it's a neccesary cost or something, it's counted into the budget.

Sekonda appears to be answering a different question.

Whilst a loss-making business should not have to pay any tax on it's income (and I find it hard to believe that this would not be reflected in the game), it will still have to pay sales tax (VAT in the UK) on a lot of it's revenue streams; and taxes related to salaries paid (such as National Insurance contributions in the UK), which would obviously be fairly high in the case of Premier League footballers.

I have no idea whether the amounts indicated in-game are accurate (you would imagine that they wouldn't include it without doing their research though), but the point is that tax on profit (which would obviously be zero, or even a rebate, in the case of the business losing money) is not the only tax that a business might have to pay in the course of its... umm.. business.

One other thing, even though your balance appears to be decreasing each month, I presume this is during the season. That is the same for all clubs, and does not neccesarily mean that you are losing money, since most of the club's income comes in the summer; and in fact, losing 1-2 million pounds a month almost certainly suggests that the club is actually profitable over the course of an entire year (thus making some profit-related tax payable).