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General Lawyers

Required expertise is required by tax authorities

Entrepreneurs who can convincingly support their views require financial authorities to not only express their position but also to challenge taxpayers’ arguments. It often happens, however, that even the most powerful state agencies cannot give a clear answer. These words are a vivid illustration of the current state of affairs in relation to the turnover of the confectionery and bakery industries.

These products are sold according to the supply contract. The goods become the property of the buyer at the time they are shipped. The buyer must return any goods not sold within the agreed time period.


What can a manufacturer do in such a case? Federal law allows for the extraction of low-quality and dangerous food products that have been withdrawn from trade. Expert research is required to determine if they should be destroyed or disposed of.

A government decree sets a standard that products with obvious signs of poor quality or that pose a danger to the health and life of people must be destroyed or disposed off without being examined.

Rospotrebnadzor agency explained that it was impossible to examine expired goods because of the mandatory implementation of the law prohibiting their sale. Another reason for the need for expertise is to determine if this product can be used as fodder or for industrial processing.

Representatives from the top financial executive of the country are not against the accounting done by tax authorities for the funds of an enterprise that were used in the production of goods that have been destroyed or lost their utility. It is important that the commodity producer can provide documentation of his actions. The tax authorities disagree with this. These expenses cannot be used to reduce taxation unless an expert opinion is received.

In judicial practice, however, there have been decisions in favor food producers. The Federal Arbitration Court of Moscow District has compiled a list of documents that can be used to verify the taxpayer’s costs for the destruction of expired products.

Representatives from the confectionery and bread industry believe that goods with expired sales periods don’t require special expertise. They are automatically considered substandard. The expiration date is a strong argument in favor of products being removed from the turnover. In this way, income tax can be calculated taking into account the cost of manufacturing and destruction of the products. What can finance officials respond to this? Food producers are required to sell their product within a certain time frame by law in order to protect the rights of buyers.

The shelf life expires and the goods are declared unsuitable for sale. The sanitary and epidemiological services of Russia for food processing enterprises have issued a decree requiring the removal of goods from commercial premises and the return of the supplier. Employees of the Ministry of Finance have confirmed that this product must be destroyed or disposed of after the expiration of its shelf life. They are willing to include such expenses in the taxation system, provided they have documentary evidence and it is implemented within the context of entrepreneurial activity.

It was not clear whether it was necessary to conduct a sanitary inspection to verify the cost of expired products to the tax authorities. This is the most important question. It seems like an “yes” or “no,” to mention the need for expert research in order to determine the fate and fate of expired products.

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