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anTTraXX
2 years ago

The BFH was very clear

1.A hosting according to § 4 para.5 No.2 EStG is only available if the presentation of food and/or beverages is clearly in the foreground.

2. Expenses for business friends are not generally inappropriate i.S. of § 4 para.5 No.2 EStG, as far as they exceed certain absolute amounts.

3. If during the visit of nightclubs with varietal, striptease and other bids the expenses are in an obvious disproportion to the value of the consumed food and/or beverages, the adequacy check to be carried out in accordance with § 4 para.5 No.7 EStG leads to the fact that the expenses are to be regarded as inappropriate in their nature. In this respect, all operating expenses are excluded.

The expensive beer in the brothel is not removable

Nelson100
2 years ago

Not for your own pleasure, but proportionally or even in full height, if you bring visitors to the brothel.

HugoHustensaft
2 years ago

Business dinners and other things that are detrimental to the business climate are reasonably deductible, but a brothel visit is not one of the things that count.

Nelson100
2 years ago
Reply to  HugoHustensaft

Depending on the document submitted. An amex or visa bill with proper invoice is credible for the Fiskus and is recognised at the permissible level.

HugoHustensaft
2 years ago
Reply to  Nelson100

But that would be quite sure at least design abuse if not even tax fraud.

lesterb42
2 years ago
Reply to  HugoHustensaft

to an appropriate extent

Says who?

HugoHustensaft
2 years ago
Reply to  lesterb42

The EStG and the jurisprudence on this – remember that “reasonable” is an indefinite concept of law that will be different depending on the situation.

lesterb42
2 years ago

Sorry, the answer has nothing to do with the question.

Whether the GV now takes place in the puff or outside does not touch the core of the question.

Be sure there are ladies who only appear in the company’s bookkeeping. This is all well registered with the pay tax and the health insurance.

HugoHustensaft
2 years ago

Sorry, the answer has nothing to do with the question. The financial courts have repeatedly dealt with the question, the judgments of which were astonishingly identical and unambiguous – the times when one could make a big case and that could deduct tax are over. By the way, mutual invitations also function only to a limited extent, the usual problem is assumed that the (potential) seller invites if the (possible) buyer does so, it always smells like a compliance violation, and the financial management does not recognize the possible benefits.

lesterb42
2 years ago

Yes, when they touch their own life. Not for “business friends” expenses. They can invite each other.