How can we justify the deductibility of service expenses?

The share of services in spending is increasing, becoming more and more important to carrying out the company activities.

However, their deductibility is generally challenged during tax inspections.

In those circumstances, how can companies prove that service expenses are incurred for the purpose of carrying out their economic activities?

What are the consequences if the tax inspection body considers insufficient the evidence presented by the companies?

• Additional costs with taxes of 35% (corporate tax and VAT), plus interest and late payment/non-declaration penalties that can reach 36,5% annually;

• Additional costs for the appeal procedure, in the administrative phase and court phase;

• Cash blocked in the State Budget.