Non Deductible Expenses

Since the obligation to declare was introduced, there have been countless attempts at more or less sensational tax deductions. Or how about plastic surgery, a holiday trip to the other side of the world or why not a brand new sports car? Here are 5 examples of definitely non-deductible costs. More than once, the tax agency has come across examples where they try to deduct for various lifts and enlargements. It’s not uncommon for models to argue that the cosmetic surgery they’re trying to pull off is necessary to get a job.

Regarding the exterior, only protective clothing can be taken off. This deduction claim is attributed to a street salesman who claimed he needed to fly between his customer visits. The tax agency saw through the aviation enthusiast and assessed the flight license as a strictly private expense. A cunning but unapproved deduction attempt was made by an entrepreneur in the car care industry. His limited company tried to get a deduction for a brand new sports car which, according to the statement, was to be used to demonstrate the car care products on.

The tax agency did not consider it very likely that the car was only used for demonstration purposes. A classic among the ugly deductions. Every year, the tax agency receives several applications from entrepreneurs who have been on a course abroad. But most often they turn out to be pure holiday trips. As in the case of the lawyer who tried to classify the walking tour of as a law course.

While study abroad trips may be tax-deductible, they must meet certain criteria – which this walking tour clearly did not. This application is also recurring every year; people trying to get a deduction for their share of the tax that goes to the armed forces. Not infrequently, solid summaries and lists of defense expenditures are attached.

You cannot choose what you have to pay tax for according to your own will and taste – regardless of how well you compiled the expenses that the tax goes to. The joking deductions aside. The basic rule for a cost to be classified as deductible is that the cost is necessary for the company to receive income. The more clearly you can prove that an expense has a direct relationship to the company’s operations and its ability to generate income, the greater the chance that it is a deductible expense. Assuming it falls within one of the tax agency’s categories, of course.