The Tax Court has reflected the view that the accreditation of the principle of causality must be supported mainly with payment receipts duly issued under Regulation Voucher and taking into account the proportionality and reasonableness of costs.
Case:
To our knowledge, the gifts provided workers contribute to the maintenance of income producing source may, expenditure, be deducted Net income, as people make an organization that constantly require the recognition of the employer to make an identification with the institution for which they work, fully complies with the principle of causality. These costs for employees have a clear purpose motivating the workforce necessary for the generation of taxable income.
must also specify that in applying Article 20 of the Regulations of the IR Act, the expenses incurred by the company generally in favor of the non-taxable income up to fifth-workers, that the Company shall not make deductions for such costs.
On the other hand, using RTF No. 668-3-99, in a case service expenditures for home surveillance of officials of the company, indicated that corresponded to examine whether the amounts paid were required to produce and maintain the source of income for the third category, taking into account the reasons and circumstances surrounding the operations of the company.
Case:
Staff costs for
1) Uniforms : In this If these are considered deductible expenses provided that the uniforms are delivered as a condition of employment or compensation in kind, but if workers do not have to repay the expense. It also requires proof of actual delivery of these uniforms to workers;
2) festivities Delivery of goods : In these cases, the Tax Court considered deductible expenses for the Christmas lunch with workers, party and gift-giving for their children.
3) Fuel for vehicles and technical staff : It was noted that to support the deduction you must attach supporting documentation to determine the obligation of the the fuel supply company;
4) Reduced maintenance and utility workers house : was considered that these costs are part of the remuneration of workers and thus have the character of deductible expenses; 5) Costs of mobility: In this regard, it has been established that for appropriate deduction of these expenses, the amounts provided the character can not be freely available to workers, and
5) Mobility costs : In this regard, it has been established that for appropriate deduction of these expenses, the amounts provided the character can not freely available to workers, and
6) Payment of pensions school education : for deductibility, they have the character fifth income category, and that spending must be established by employment contracts, appropriation of the amount in the book of forms or have made the deductions.
Case:
An associate asked if we can be deducted as travel expenses, lodging and consumption that takes a commission that issue receipts for fees occasion of service provided to your company.
A worker who issued receipts for fees is one that performs a service independently on their own and, therefore, must assume the costs of compliance with the service it provides to the company.
In this sense, the amount by way of trips made to specify or advise on a sale, their consumption of housing and others who have had to perform under the trip, will be part of the costs you must take to meet with its delivery.
However, if the business takes the concepts related expense (travel tickets, consumption and housing), these will be considered as part of compensation that the company must pay the commission for their personal benefit. Thus, the company will retain the IR on the remuneration of the agent plus disbursements incurred in the company to purchase travel tickets, drinking and lodging.
also under subparagraph v) of Article 37 of the Law of Income Tax, expenses or costs which are for income earner second, fourth or fifth category may be deducted in the tax year to which they relate when been paid within the prescribed period for filing the affidavit for that year.
In this regard, to the effect that travel expenses are deducted by the company, they should be part of the compensation given to the commission as recipient of income in the fourth category, because these expenditures involve a financial advantage for the latter .
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