"The clarification is addressed to the tax authorities, but taxpayers can learn from it a lot of useful."
Tax officials commented on the rules, effective from August 19 of this year, which, in their words, are needed to prevent "aggressive" tax optimization mechanisms.
In case a transaction is performed by a person who is not specified in the primary accounting documents, tax authority is likely to deduct expenses on income tax and VAT deductions. It is clarified that the real contractor, for example, the subcontractor, is better to indicate in the contract.
Tax officials confirmed that companies have the right to conduct business activity in such a way to make tax consequences are minimal. Inspectors cannot insist on any particular version of a business solution. Nevertheless, taxpayers must confirm that transactions have a reasonable economic (business) purpose. Savings on taxes are better not to mention at all.
Methodological (legal) error cannot be recognized as a distortion of information about facts of the company's economic activity or about taxable items unless it is proved that this was done intentionally with the aim of reducing tax payments. By distortion should be understood is deliberate, conscious actions of the taxpayer. Tax inspectors should prove this kind of actions. How they will do this, is clarified in the clarification letter.
