Analysis of 'non-deductible' expenses

Many companies overpay taxes due to systemic expense accounting errors. The primary issue stems from improper documentation practices: vague wording in contracts and source documents often leads to expense recognition denials. This problem is exacerbated by accounting departments' insufficient understanding of acquired services' true nature and a conservative accounting approach carried over from previous periods. Furthermore, personnel responsible for tax accounting frequently lack awareness of recent tax legislation updates and current judicial practice trends.

Our Solution

We conduct comprehensive analysis of “non-deductable” expenses, identifying amounts with high tax recovery potential. Our experts will:

• Examine contracts and source documentation
• Communicate with responsible parties to accurately determine expenses' economic substance
• Develop specific recommendations for reclassifying expenses
• Calculate potential tax savings for previous and future periods

Target Audience

Business owners and CEOs seeking to legally reduce tax burdens and enhance financial performance. CFOs, chief accountants, and tax specialists aiming to substantiate expenses, establish tax policies, and mitigate audit risks.

Business Outcomes

• List of expenses potentially recoverable through proper compliance
• Step-by-step methodology for correctly documenting "deductible" expenses
• Well-substantiated position on expense utilization
• Recommendations for tax return adjustments
• Optimization of internal accounting procedures

Case Studies

Marketing Services - Restored to Accounts, Taxes Reduced

A client couldn't deduct individual entrepreneur marketing services due to documentation flaws. We revised acceptance certificates and reports, enabling successful expense recognition. Result: corporate income tax reduction exceeding several million rubles.

Employee Transportation - Properly Documented, Millions Saved

Our analysis identified substantial employee transportation costs. After document refinement and preparation of tax authority "defense files," these expenses became safely deductible for profit tax purposes. Annual tax savings: over 5 million rubles.

Historical Errors - Identified and Corrected

Certain expenses went unrecognized for years due to entrenched conservative practices. We reevaluated the approach, justified proper inclusion, and helped recover lost tax benefits.

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