Fact review. Does the Avante party pay no taxes and made a profit of 1.4 million? – observer



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A table circulates on Facebook that seeks to estimate the income accumulated by the PCP from the sale of tickets for the Festa do Avante! According to the publication (which includes a print Screen from Agência Lusa news published in the Observer, reporting Jerónimo de Sousa’s statements about the “hope” and “trust” that the event aims to give the Portuguese), each ticket for the event costs 35 euros. Which, with the presence of 40 thousand visitors, would translate into a profit of 1.4 million euros, since the Festa do Avante! Is supposedly not subject to taxes. Is that so?

This year, the Permanent Ticket (EP), that is, the ticket that gives access to the three days of the event (Friday, Saturday and Sunday) costs 26 euros. This value was valid until Thursday, September 3, the day before Avante started! in Quinta da Atalaia, in Seixal. Starting that Friday, and for the next two days, the EP started to cost 38 euros. Daily tickets, which can only be purchased at the event box office, cost 28, 33 and 21 euros, for Friday, Saturday and Sunday, respectively. Children up to 14 years old did not pay for PE, as long as they were accompanied by an adult with PE.

This means that the value shown in the post It is incorrect, it does not correspond to any of the EP prices (before and after the start of the festival) or daily tickets. And since this value, which serves as a reference for the profit forecast in the published table (1.4 million euros) is not certain, the final value is obviously also incorrect.

The table is shown below a print screen of a news item published in the Observer. This post, dated August 18, is just one of the many ways these accounts were presented.

Regarding the information that Avante’s party! you don’t pay taxes, it’s true.

Avante’s party! It is a fundraising event for a political party, the PCP, and according to article 10 of Law No. 19/2003, on financing political parties and electoral campaigns, parties are exempt from various types of taxes. Among them are, for example, the “municipal tax on the taxable value of real estate or part of the real estate owned and used for its activity” (section d); or the “value added tax on the transmission of goods and services in special initiatives to raise funds for their exclusive benefit, provided that this exemption does not cause distortions of competition” (paragraph h).

This means that, unlike tickets to other events that include musical shows, Avante! they are not subject to 6% VAT. Also, the event does not pay tax on the profits, unlike a festival organized by individuals. The PCP does not have to pay IMI for Quinta da Atalaia either, since the space, as real estate destined to the political activity of the party, is, according to Law No. 19/2003, exempt from the “municipal tax on the taxable value of the real estate”.

Despite this exception, applicable to all parties in Portugal, all materials or resources purchased or contracted for the Festa do Avante! pay taxes.

Regarding the number of tickets purchased for this year’s edition, the PCP has not yet released figures, saying that it will continue to sell EPs, despite the limits imposed by the General Directorate of Health (DGS).

DGS issued, in the first days of September, the opinion that defined the measures that the organization would have to take for the event to take place safely in a pandemic situation. These included isolation rooms, a maximum capacity of 16,563 people simultaneously in the enclosure, seating and the mandatory use of a mask. The consumption of alcohol was also discouraged, the sale of which was prohibited after 8 pm. When contacted by the public, the PCP admitted the possibility that the number of tickets sold was higher than that established, guaranteeing, however, that it would respect the regulations.

It is not true that the ticket price for the 2020 edition of the Festa do Avante costs 35 euros, which means that the accounts shown in the table are not correct. And by It is also false that the Party had a profit of 1.4 million euros, since the accounts are based on an entry price that does not correspond to reality. However, it is true that Avante !, a fundraising event for the PCP, does not pay taxes and that the price of EPs does not include 6% VAT, applied to tickets for musical shows. This exemption is provided by law and applies to all political parties. Mixing false information with true information, the information in this Send therefore, it is misleading and partially false.

So, according to the Observer classification system, this content is:

Cheat

In the Facebook ranking system, this content is:

PARTIALLY FALSE: Content claims are a mixture of accurate and inaccurate facts, or the main claim is misleading or incomplete.

Note: This content was selected by the Observer as part of a fact-checking partnership with Facebook.

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