The Irish arm of global online fundraising platform GoFundMe has scored an €11.3 million VAT “win” after a tax investigation by the Revenue Commissioners.
GoFundMe’s Irish site enjoyed international headlines last year with the “buy a pint” fundraiser on its platform that raised €370,020 for one of the heroes of the Parnell Street stabbings in November, Deliveroo rider Caio Benicio.
Accounts just filed show that GoFundMe Ireland Ltd was under investigation at the time by the Revenue Commissioners relating to company’s VAT returns filed for years 2017 through to 2020. Arising from the investigation, directors for GoFundMe Ireland state that the company “had estimated a liability – or VAT Reserve – of €9.5 million consisting of a VAT liability of €11.3 million less a VAT Receivable of €1.8 million to be settled upon the close of the examination”.
The new accounts show the company recorded the exceptional gain of €11.33 million arising from the company receiving a communication from the tax authorities here in February 2024 regarding resolution of the VAT examination “which resulted in a de minimis tax liability for the company”.
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The directors state that “in addition the company received cash for the €1.8 million VAT refunds receivable from Ireland”.
The accounts show that the €11.33 million exceptional gain contributed to pretax profits at the company increasing more than eleven-fold to €27.7 million in 2023 from €2.24 million a year previously.
Revenues, which are generated in Europe, including the UK, and Canada, were 10 per cent higher at €41.13 million from €37.35 million. A breakdown of revenues show that €16.57 million was generated in Europe, €10.76 million in Canada and €13.79 million in the UK.
The company holds the intellectual property rights for all GoFundMe geographical locations outside the United States.
The business recorded a profit after tax of €24.07 million and accumulated profits at year end totalled €29.3 million.
The directors credited international crises and strong growth in key markets across Europe for the increase in revenues but added that differing regional regulatory frameworks and exchange rate volatility presented challenges and affected the overall profitability of the business.
Numbers employed by the company last year fell from 60 to 53 and staff costs, including bonus payments of €134,000, came to €5.09 million, down just 2.5 per cent.
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