15. Cheltuieli deductibile. Cheltuieli efectuate cu logo-ul societăţii. Cheltuieli cu serviciile de asistenţă generală, cercetare şi reprezentare comercială
15. Deductible expenses. Expenses made with the company logo. Expenses with the general assistance, research and commercial representation services

Summary/Abstract: According to art. 65 par. (1) of the tax procedure Code, the burden of proof in proving the tax situation falls on the tax payer. In interpreting the provisions of art. 21 par. (4) letter m) of the tax Code and the implementation rules, the existence of contracts is a necessary condition for acknowledging the deductibility of expenses, however not sufficient; the tax payer must prove cumulatively that the services were actually provided and that they were directly connected with the company’s business, being related to obtaining income. An adequate proof in this respect implies that the business operator submits, for instance, work reports, acceptance reports or feasibility studies, while evidence of the type that the tax payer used in the examined case is inconclusive namely: the list of brands used in Romania, press articles, graphs regarding the influence of various parameters on the activity, information extracted from the Internet or product quality control graphs. In relation to the provisions of art. 11 par. (1) of the tax Code and of pt. 23 and pt. 30 of the Methodological Norms for implementing Law no. 571/2003, as approved by the Government Decision no. 44/2004, the prices of transactions made between affiliates may deviate from the market price that independent persons would pay, but this assumption does not substantiate the theory that, de plano, all expenses made with the services provided within the group of companies are deductible. Expenses made with the company logo are not deductible, as long as most of the production is delivered to the companies that are part of the same group, and the need for expenses is not justified by obtaining a competitive advantage or the action of promoting the products in other markets.

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