(1) volunteers have to explain scheme & roles to ppl dropping goods http://www.taxation.co.uk/taxation/Articles/2010/01/06/254311/it-s-my-bag …
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(2) artificially low commission rate?
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4 a thing 2b a tax risk factor there has 2b tax law by reference 2 which the tax might b understated
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Replying to @_ClairQuentin @MForstater and
so in order to get a positive from my test you would need to have identified that relevant tax law
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Section 416, Income Tax Act 2007 Condition A 'the gift takes the form of a sum of money'?
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nearly there ... gift is structured 2b money, so you need a basis for looking behind the structure
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Replying to @_ClairQuentin
4 it to work u hv to get the person who thinks they are donating a shoe, & the vol who thinks they are accepting donations...
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Replying to @MForstater
...to play along with the fake commission deal....riskier than just saying 'thanks for donating the shoes, we will sell them'
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Replying to @MForstater
maybe but u need 2 identify the law which you say that recharacterisation risk arises by reference 2 (Ramsay principle perhaps?)
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Replying to @_ClairQuentin
seems straightforward application of yr model to me. Someone donates clothes to my charity. I cld accept donation & sell them
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Or I cld draw up paperwork, train staff etc.. to structure it 4 tax benefit as sale on commission, with later cash donation
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Replying to @MForstater
- second option is riskier. More could go wrong, paperwork & training has to be right etc..
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