E-Waste
Transforming Waste into Wonders: Your Partner in E-Waste Solutions
What Do We Know About Current Issues With E-Waste Providers
Lack of Transparency:
Some e-waste providers may lack transparency in their disposal processes, leading to concerns about whether electronic waste is being handled and recycled responsibly.
Limited Recycling Capacity: Insufficient infrastructure and recycling capacity can hinder the ability of e-waste providers to handle large volumes of electronic waste, leading to backlogs and delays in disposal.
Environmental and Health Hazards:
Improper handling of e-waste can result in environmental pollution and health hazards due to the release of toxic substances such as lead, mercury, and cadmium. E-waste providers must ensure that their disposal methods minimize these risks.
Data Security Concerns:
E-waste often contains sensitive data stored on electronic devices. Improper data destruction methods can lead to data breaches and privacy violations. E-waste providers must implement robust data security protocols to safeguard sensitive information during disposal.
Cost Considerations:
E-waste disposal can be costly, especially for businesses dealing with large volumes of electronic waste. Some e-waste providers may struggle to offer cost-effective solutions, leading to financial challenges for their clients.
The Truth About OEM Disposal
One method we often see when it comes to disposals is that the OEM will offer discounts. Unfortunately this is the worst approach when it comes to Sustainability, why is this?
- In the latest reports from the OEM's only 14% of hardware that is taken back is put back into supply
- OEM's are not interested in having old devices back in the supply chain, this supports a secondary market which they would look to reduce.
- Many of the components do not make their way back to the supply chain, So of the 86% of the devices that are sent back we dont see the benefits
- For many years the OEM's have been trying to detract clients from buying from the secondary market, sighting reasons such as high failure, lack of testing. All of which have been in place.
The Financial Challenge of Getting Cash for Your Waste
The other alternative to handing over your old assets is that there are notable financial implications. If an asset that has been fully depreciated to zero is sold, any proceeds from the sale would typically need to be declared for tax purposes. Here's why:
Capital Gain or Loss:
When you sell an asset, the difference between the selling price and the asset's adjusted basis (which may be zero if fully depreciated) results in either a capital gain or a capital loss. If the selling price exceeds the adjusted basis, you have a capital gain. If the selling price is less than the adjusted basis, you have a capital loss.
Tax Implications:
Capital gains are generally taxable, while capital losses may be deductible against capital gains or ordinary income, subject to certain limitations and rules in your tax jurisdiction.
Reporting Requirements:
Depending on your tax jurisdiction and the nature of the asset, you may need to report the sale and any resulting gain or loss on your tax return. This typically involves completing specific forms or schedules provided by the tax authorities.
Documentation:
It's important to keep accurate records of the sale, including the selling price, the original cost basis of the asset, any depreciation taken over its useful life, and any expenses related to the sale (such as brokerage fees). This documentation will help you accurately calculate and report any capital gain or loss on your tax return.
In summary, even if an asset has been fully depreciated to zero before being sold, any profit from the sale is generally subject to tax and should be declared according to the tax laws in your jurisdiction. Many accounting teams struggle with this and often refuse accepting any profits. This means that e-waste company not only makes money from the cost they charge to you for disposing of the products they also make money from then on selling the products.
What then is the alternative?
Read up on our Circular IT Credits here
RecircIT's Promise
Our mandate is planet first. With this we look to focus on a tiered approach to determine you E-Waste needs. So here are the questons we would look to ask
- Do the goods have any residual value in the market?
- Can your finance team account for profit back in on the goods?
- Do you have any security concerns around redistrubuting goods back into the supply chain?
- If there is no value would you accept a credit against the purchase of other Circular IT Products?
After this we would attribute a value to the goods and look to have you engage in the circular economy. We will also provide a report on CO2 savings and tonnage savings on e-waste
How Our Partners Handle The E-Waste
1. E-waste is prepared for processing
Components from the e-waste, such as PCBs and CPUs, are weighed and milled into a sand consistency. This maximises the surface area enabling rapid metal recovery and guarantees military grade destruction of any residual stored data.
2. Copper is recovered through a conventional electrochemical process, producing pure copper sheets ready to be reused.
3. Through our unique biosorption method, we recover precious metals in a manner that both concentrates and purifies them. The material recovered is then further refined to produce commodity grade gold.
4. Chemicals used are recharged and recycled within the process, or converted into by-products that have use in construction and agriculture.
