Vad ingår i lyxbetonad representation?
Representations that are too lavish nature is called luxurious representation. Luxurious entertainment is not deductible. The right to deduct the representation of 16 Chapter. 2 § IL refers only to costs that can be considered to be reasonable, which means that lyxbetonad representation outside the scope. Lyxbetonad representation is mainly characterized by the high cost. For such representation, there is no immediate connection with business activities that must exist for the representation thing to be deductible. As the direct link is missing, it recognizes not even an allowance for luxurious representation because the full costs are not deductible. Luxurious representation is also of course go beyond what is deemed reasonable amount. What is luxurious representation of the facts of each case.
Examples of luxurious representation of practice
The practices contained in the tax on lyxbetonad representation shows that the non-deductibility of lyxbetonad representation.
– specifically arranged hunting excursions
– specifically arranged fishing trips
– specially arranged Entertainment
– holding yachts for representation purposes
-holding lantställen for representation purposes. According to the Tax Agency should also houses and other buildings used wholly or mainly intended for entertainment purposes should be included in this category. Exceptions may be made to buildings in places where housing issue to visiting business relationships otherwise not be arranged in a satisfactory manner.
Other things that can be luxurious representation
House of sports facilities through sponsorship of various sporting clubs (football, hockey mfl) är sannolikt inte avdragsgillt då det inte borde finnas något direct link.
Learn more about representation and what is deductible representation