14.05.09

A certain company concluded an agreement for merchandizing services. However, the Tax Authorities did not recognize the expenses on merchandising, saying that merchandising is a means of advertising a good and advertising is considered as a separate action for tax purposes.

The Federal Arbitration Court (FAS) issued a decree against the Tax Authorities' argument. It states that expenses for carrying out merchandising activity aimed at receiving income are economically sound and targeted at procuring a positive economic impact. Thus, the expenses can be claimed for tax purposes (Decree of FAS’ Moscow District from April 6, 2009 N КА-А40/2402-09).

Translated by Alinga Consulting Group.

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Source: Российский налоговый портал