A common issue in small and medium-sized businesses is the incorrect classification of expenses. Not every payment made from a company account qualifies as a deductible business expense.
Tax authorities focus primarily on whether the expense:
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is directly connected to business activity,
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has proper documentation,
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can be clearly justified,
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and is not of a private nature.
During audits, FURS frequently reviews:
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travel expenses,
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representation costs,
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vehicle-related expenses,
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and payments with mixed personal and business use.
Why is this important?
Improperly classified expenses may result in:
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additional corporate income tax,
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late payment interest,
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increased audit exposure.
➡️ Practical insight: Clear separation between private and business spending reduces long-term tax risk.
CTA:
👉 We can review your expense structure and identify potential tax exposure.