Meeting with a contractor to be recognised as an expense

This case is interesting insofar as until now, the prevailing position of both the tax authorities and courts was that in the case of integration with contractors running a sole proprietorship, expenses for this purpose did not reduce revenue. However, in a recent judgment, the NSA stressed that each factual situation is different and each should be considered individually.

– The NSA’s approach appears to be rational and correct. The issue of integration meetings and their tax settlement has been controversial for many years. Just as a dozen or so years ago, integration meetings were rare and the tax authorities could treat them as some kind of whim, today they are a natural economic practice, which serves the development of cooperation, which translates into increased revenues. Therefore, as market practices change and business develops, also tax authorities, but also administrative courts, should take this practice into account and change their approach. It is encouraging to see the first – referring to the aura outside the window – snowdrops in this respect, comments Łukasz Kupryjańczyk, tax adviser, partner at Thedy & Partners.