Quote: BrisbaneRhino "How does people turning up or not increase the tax burden? Either you get income or you don't. Claiming in the papers to have 20,000 fans when there really are only half that doesn't impact your income in any way.
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No but its the sort of thing that raises a flag down at the local tax office when the returns appear, even a rudimentary amount of investigation would reveal that "Club XXX" were claiming an average of 20,000 through the gate across the season and yet their turnover only indicated around 10,000 - cause for further investigation or re-assessment leading to awkward questions such as "so how exactly do you measure your crowd numbers, do they all get a ticket/receipt, are your turnstiles capable of accurate measurements, have you kept the records, can we see them NOW.
If you can't answer the questions they'll simply re-asses the club at their best guess (20,000), maybe fine the club for incorrect submission, maybe even prosecute for deliberately under declaring, and certainly fine for incorrect quarterly VAT submissions - even though the club's original submissions may have been correct, you don't want to mess with those people.