The taxpayer works as an employee for an insurance company, as a broker. To carry out his activity, the insurance company grants him representation expenses to cover the costs incurred by the taxpayer in the exercise of his lucrative activity. The taxpayer qualifies the representation expenses as professional expenses.
The tax authorities are not communicating on a practice they would have
No details in the annual instructions for the tax return submission.
No directive or circular published on its website.
In the annual tax assessment, the tax authorities inform the taxpayer that they have a practice:
1\ufe0f\u20e3 Reclassification of representation fees as salary
2\ufe0f\u20e3 On the first income bracket of CHF 60,000, 25% is treated as a business expense (i.e. a maximum of CHF 15,000 for this bracket)
3\ufe0f\u20e3 For income above CHF 60,000, 10% is treated as a business expense
4. The total capped at CHF 20,000
which is CHF 15,000 for the CHF 0-60,000 bracket
and CHF 5,000 for the CHF 60,000-110,000 bracket
and CHF 0 for all net taxable salaries exceeding CHF 110,000
5\ufe0f\u20e3 This package excludes any effective deduction.
Let's rephrase the tax authority's HR skills:
\u00a360,000 net taxable salary (including flat-rate representation expenses)
\u00a345,000 taxed and \u00a315,000 in professional expenses
\u00a3110,000 net taxable salary (including flat-rate representation expenses)
\u00a377,400 taxed and \u00a317,200 in professional expenses
\u00a3200,000 taxable salary (including flat-rate representation expenses)
\u00a3180,000 taxed and \u00a320,000 in business expenses.
When an employer seeks to value their employees and encourage them to develop business,
\u25b6\ufe0f The tax authority is doing a U-turn, rewriting history and putting pressure on the motivation of these same employees.
\ud83d\udc49 Flat-rate fees exist to simplify the administrative process. To refuse the principle of the existence of such fees is to
To generate extensive administrative work that reduces a taxpayer's profitability and income (and thus tax revenue)
\u25b6\ufe0f artificially increase taxpayer revenue
to tax the taxpayer at a significantly higher rate than they should be taxed, or even at a rate beyond the legal scale
recover an overpaid tax<\/p>\n\n\n\n
ACI-VD practice<\/p>\n\n\n\n
<\/p>","protected":false},"excerpt":{"rendered":"
\ud83d\udc49 Le contribuable travaille comme salari\u00e9 pour une compagnie d’assurances, comme courtier. Pour exercer son activit\u00e9, la compagnie d’assurances lui alloue des frais de repr\u00e9sentation pour couvrir les frais engag\u00e9s par le contribuable dans l’exercice de son activit\u00e9 lucrative. Le contribuable qualifie les frais de repr\u00e9sentation de frais professionnels. \ud83d\udc49 Le fisc ne communique pas […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-352","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"acf":[],"yoast_head":"\n