Why am I paying this much tax? Where's my tax refund?

[grey_wind]

Refer attached screenshot and save file. So in 1907 I had 2 profitable quarters and 2 quarters in deep red. Overall I just about managed to finish slightly in the positive in terms of operating profit. Why am I paying so much tax in 1907? My HQ is New York.

According to the game's video tutorials, after the first quarter of 1908, I am supposed to see a tax refund if I have paid a higher estimated tax that what I actually owe, but I have progressed to 6/1908 and I am yet to see that tax refund.

I have no fines, no audits, haven’t IPOed or engaged with the stock elements of the game yet. Also I’m not sure if I have tariffs turned on but I’m manufacturing everything within the US and all my branches are also within the US.



Save file

  Moneybags.zip (Size: 7.84 MB / Downloads: 1)

[Eric.B]

Thanks for the save! I just replied to your Reddit post.

I'll take a look at the save this evening/latter tonight and report back.

[Eric.B]

According to the save game, you got a tax rebate of -265,818 on March 1908.

I broke down a table of 1906, 1907 and Q1 1908 for you here:

   

(note to myself to allow .ods upload in the future.)

I didn't run 1905's numbers, but part of that $38,832 that the government owes you in 1908 was likely paid back in 1906. That's why you had a rebate even though you had a positive tax income.

So, the numbers line up close enough in the save game. I would have to do your entire taxes to see how much carries forward to tell 100%. But I'm sure it's pretty close.

Sadly, I don't get access to your reports, so you will need to load the save game, and then hit the previous report link in the reports to see if you got paid in March or April. I believe it's under a tax rebate OR a negative tax. If you didn't, let me know.

[grey_wind]

According to the save game, you got a tax rebate of -265,818 on March 1908.

I broke down a table of 1906, 1907 and Q1 1908 for you here:



(note to myself to allow .ods upload in the future.)

I didn't run 1905's numbers, but part of that $38,832 that the government owes you in 1908 was likely paid back in 1906. That's why you had a rebate even though you had a positive tax income.

So, the numbers line up close enough in the save game. I would have to do your entire taxes to see how much carries forward to tell 100%. But I'm sure it's pretty close.

Sadly, I don't get access to your reports, so you will need to load the save game, and then hit the previous report link in the reports to see if you got paid in March or April. I believe it's under a tax rebate OR a negative tax. If you didn't, let me know.

Thanks so much for doing this. Couple of questions though:

1. The reason I paid $202,241 tax in Q4 1907 (despite having lossed for the quarter) was because I owed $516,701 from 1906? Why wasn't that deducted in Q1 1907 instead of Q4 1907? I thought tax reconciliation was supposed to happen at the end of Q1 of the next FY.
2. In Q1 1908 I got a tax rebate of $265,818 even though the govt owed me $304,650? Why wasn't the remaining $38,832 paid and settled in Q1 1908?

I don't doubt that I will see the money at some point, but I'm just trying to understand the cash flow implications of the tax mechanics in the game.

[Eric.B]

1. The reason I paid $202,241 tax in Q4 1907 (despite having lossed for the quarter) was because I owed $516,701 from 1906? Why wasn't that deducted in Q1 1907 instead of Q4 1907? I thought tax reconciliation was supposed to happen at the end of Q1 of the next FY.

Your Q4 payment in 1907 is to make up for your 1907 underpayment as most of the payment you made in Q1 went to paying your 1906 bill. Of course, you lost more money than expected that final month.

2. In Q1 1908 I got a tax rebate of $265,818 even though the govt owed me $304,650? Why wasn't the remaining $38,832 paid and settled in Q1 1908?

The $38,832 likely doesn't exist. You likely got that money back Q1 1906. I did not do your tax numbers for 1900 through 1905.

So, the government didn't owe you $304,650, they owed you $265,818 ($304,650 - $38,832), and your balance at the end of 1906 is likely also worse. As I mentioned, you'd have to do 1905 taxes... And then for that you'd have to do 1904, and so forth until you come across a year where you don't pay or get back anything.

[grey_wind]

1. The reason I paid $202,241 tax in Q4 1907 (despite having lossed for the quarter) was because I owed $516,701 from 1906? Why wasn't that deducted in Q1 1907 instead of Q4 1907? I thought tax reconciliation was supposed to happen at the end of Q1 of the next FY.

Your Q4 payment in 1907 is to make up for your 1907 underpayment as most of the payment you made in Q1 went to paying your 1906 bill.  Of course, you lost more money than expected that final month.

But shouldn't I then have paid ($516,701 + whatever tax I owed on $725,207) as tax in Q1 1907? How did the game come up with the calculation of $536,646 as my tax bill for Q1? And in the same way, what's the math behind the $202,241 tax number in Q4 1907?