The High Court of Justice and Cassation ruled that due to the provision of the Fiscal Code in order to determine the taxable profit is considered deductible expenses only those done with the purpose of doing taxable incomes, not having this character the service expenses for which the contributors cannot justify the necessity of paying them to develop the activity. In this case, despite the lack of connection to the object of activity of the company, were considered by the court undeductible the expenses with the accommodation, purchases of garments, textiles, decorations, paintings, linens, curtains, bedspreads, decorative vases, construction, inventory which were not included in the economical activity of the society, but which were used the unique associate of the company, so is justified treating them as dividends that are due tax. Also, were considered as undeductible the expenses with the garden decorating of the company’s building, compared to the activity object of the company, consultancy, the expenses with transportation and car renting (the company had a number of five cars and just four persons were using them), also the consultancy services provided by a Swiss company under a prior contract to this firm has been established. (Decision no. 3253 from 27th of June 2012 pronounced in appeal by the Administrative and Fiscal Department of the High Court of Justice and Cassation having as object annulment of a imposing decision drafted by ANAF).
>> The source: JURIDICE.ro
