Too much booze for the tax office? New judgment!
Celebrating at company expense? Be careful, the tax office might take a closer look! A new court ruling shows how important documentation and details are for business events – and why some parties fail because the alcohol level was too high.
The verdict: Drunk and not tax-deductible
A Berlin company wanted to deduct the costs of its New Year’s party with over 200 guests for tax purposes. But the tax office refused to recognize it – and the Berlin-Brandenburg tax court agreed. The reason? The guests were said to have consumed so much alcohol that business discussions seemed impossible. The ruling is legally binding and has caused quite a stir.
The 5 W’s for tax-safe company celebrations
To avoid such problems, a correct hospitality voucher is crucial. It must answer the following questions:
- When did the celebration take place?
- Where was the event?
- Who took part?
- Why was there a celebration?
- How high were the costs?
If one of these points is missing, the tax office may refuse to recognize it for tax purposes.
What does the ruling mean for companies?
The ruling shows how strictly tax offices check company celebrations. Documentation is everything: The second receipt, which contains all relevant information, must be created promptly after the party. Subsequent lists are usually not accepted by the tax office.
Our tip: Be prepared!
Whether it’s a company party, entertainment costs or hospitality – without complete documentation, you risk tax problems. Remember the 5 W’s and document your business events carefully.
Do you have stress with the tax office or questions about entertainment expenses? Our tax experts are here to help. Book your first aid consultation. And with the sample objection from PepperPapers.de, you can successfully defend yourself – without a lawyer, it’s easy.
Celebrate cleverly – and do it right for tax purposes! You can find more information on the latest court ruling here in the YouTube video!
