wallmth
Fans' Favourite
I'm not sure I would classify this as "windfall profit" - but any tax charge could depend on whether it was claimed as a deduction for tax purposes in the accounts.
Penalties are not normally allowable for tax purposes - unless it was claimed as being incurred "wholly and exclusively for the purposes of trade" - this is the general rule for all business expenses being claimed- unless you are an MP (see - floating duck islands, etc)
So Eddie's parking ticket outside the takeaway cannot be claimed as a business expense.
However, it could be argued that this penalty WAS incurred for the purposes of trade - monies were spent with the intent of gaining promotion, strengthening the squad, etc.
If it were claimed as a tax deduction, then there will be an adjustment in the next set of accounts - and AFCB will be expected to pay tax on the balance "refunded".
I got to be honest ..you don’t come across as very punk rock .