Tax Alert January/February 2014
The Federal Fiscal Court has recently clarified the issue of tax approval of labor contracts with close relatives and stated as follows: employment contracts with close relatives are generally recognized for tax purposes if the contract is valid under civil law and common in the market and if the service agreed on (payment of the salary on the one hand side and activity of the employee on the other hand side) is actually provided. According to the recent decision of the Federal Fiscal Court it is not harmful, if the employee works more than agreed. The presentation of time sheets is also not required. It would be harmful, if the employee would work less.
You can find more information about this issue in the current tax alert.
Further topics are: all-clear for the sales tax credit note, travel expenses in 2014, income tax at corporate events, contributions to securing the future of the employee, taxation on redundancy payment, tax reduction for handicraft services, donation between spouses.