this post was submitted on 19 May 2026
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me_irl
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It lowers their tax burden though. Which is the whole point
I'm not convinced it does, corporation tax is charged on gross profit, usually if a corporation makes a charitable donation this reduces their profit and therefore their tax liability (but not more than the cost of the donation)
If you round up 20c then the cooperation makes 20c revenue and loses 20c when they donate leaving their profit unaffected and therefore their cooperation tax is unaffected.
There might be some financial magic I am missing but nothing I have seen in this thread explains exactly how this is could be advantageous tax wise.
Yeah I'm no expert either, but I do think there is some kind of accounting shit (are they loopholes if it's intentional?) that they do.
I think there's something around "pass-through" entities that they use to lower their tax burden... But again, I know very little about this stuff.
Apparently though, with donations made at the cash register (e.g. round your order up), the corporation is just collecting the donation on behalf of the charity and can't use that to lower their tax burden. So that might just be pure PR.
The little jars at the register are treated differently though I think.