The withdrawal of cash from a bank account does not constitute a deductible expense for Corporate Income Tax purposes
Technical details
Summary
A company inquires whether funds withdrawn from its bank account to mitigate pandemic risks may be considered a lost and deductible amount. The DGT responds that it is not deductible because the transaction does not represent an accounting expense nor a decrease in net equity.
In 6 key points
How it affects those involved
Affects tax liability through accurate calculation of taxable base and deductible expenses