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A company has enquired whether amounts claimed by the Social Security administration following a workplace accident are tax-deductible. The Directorate General for Taxes (DGT) has ruled that the surcharge imposed for failure to implement safety measures is a non-deductible administrative penalty, whereas disability benefits are deductible.
Companies must distinguish between deductible social security benefits and non-deductible administrative penalties/surcharges when calculating their taxable base for Corporation Tax.
The tax team reviews your specific situation.
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