Non-accounted business losses are not deductible

ATA/315/1996Court of Justice / Administrative ChamberMay 29, 1996Dismissed

Extracted by Omnilex

Omnilex summary

The case concerns a tax deduction claim for commercial losses. The court held that business losses which were not booked in the accounts cannot be deducted. The taxpayer's request was therefore rejected.

Omnilex headnote

LCP. 21 litt. l; impôt; déduction des pertes commerciales: seules les pertes effectivement comptabilisées sont déductibles. Les pertes commerciales non inscrites dans la comptabilité ne peuvent pas être portées en déduction, la déduction fiscale étant conditionnée par une comptabilisation régulière et vérifiable.

Full text

Descripteurs

IMPOT; DEDUCTION(SENS GENERAL); PERTE(ARGENT); FIN

Normes

LCP.21 litt.l

Résumé

Des pertes commerciales non comptabilisées ne peuvent être déduites.

Keywords

taxationdeductionbusiness lossaccountinglosses

Key legal questions extracted by Omnilex

Whether non-accounted business losses are deductible for tax purposes.

No. Business losses that were not properly recorded cannot be deducted.

The decision applies the rule that only duly accounted commercial losses qualify for deduction; losses not entered in the accounts are excluded from deduction.