Online Business Tax Implication of Donations

[Celtic Cub]

Hi,

I am currently setting up an online business that will allow website users to make donations using paypal. I am just wondering what the tax implications of this type of revenue would be.

Hope someone out there can help!

 

[Padraigb]

If the donations are discretionary payments for provision of a service, then they constitute income for tax purposes. Costs incurred can be offset against such income.