Not an accountant (and Mrs Casa is out of town at the mo). Have noticed a lot of comments about what's 'in' and 'out' of the earnings stream. The top up payment - surely that comes off the earnings (the E bit of EBITDA) - earnings for a corp/coy etc is profit and that being what's left over after expenses - as against wage and salary - you get taxed on every penny received even though the monthly tram ticket (a cost) is purchased in order to conduct your 'business' . Therefore -top up payment would be expense - BECAUSE is is not part of the capital purchase but can be viewed as a conditional contract to revenue share ? Ditto, the royalty debate - paying royalties is a cost to business - comes straight off the 'E' bit.
It sort of boils down to the principle that only profit (read 'earnings') is taxed - what ever subtracts from earnings is not available to be taxed.
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Not an accountant (and Mrs Casa is out of town at the mo). Have...
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