AMLO’s government keeps choking businesses in Mexico. One court ruled that the deduction of advertising and publicity is inappropriate because it is not a strictly indispensable expense, since it benefits the trademark owner.
MEXICO CITY (elcontribuyente) – Deductions must comply with various requirements. Among them, they are strictly indispensable expenses for the purposes of the taxpayer’s activity. [Income Tax Law 31, section I]. This means that such expenses must be directly related to the activity of the company. In addition, they must be necessary to achieve the purposes of its activity or the development thereof. Because if they do not occur, their activities could be affected or their operation or development hindered.
Therefore, a court considered that in order to determine whether such expenses satisfy that requirement, the expense and the purposes of the undertaking must be considered.
What is advertising and publicity expenses?
The court indicated that, if a company has as its object the sale of a certain product, and has concluded a non-exclusive license agreement for the use and exploitation of intangibles, which grants it the use and exploitation of a trademark to sell that product, it will be prevented from making the deduction of advertising and publicity expenses.
The court noted that the term “publicity expenses” refers to acts through which something is made known with the purpose of attracting followers or buyers. This is done through the means used to disseminate or spread the news of things or facts.
Why could the deduction of propaganda and publicity not be applied?
“That is why you determined non-deductibility in this case, because you do not own the brand, you use to sell your product. Because the expenses in question are not strictly indispensable for the development of the economic activity.
This is because them (the companies) increase the value of the brand for the benefit of a third party. In other words, it benefits the owner of the brand. Because those expenses are not aimed at the article, but at positioning the brand in the market. This is to confer notoriety, fame and recognition among the consuming public”.
This was determined by the second section of the superior chamber of the Federal Court of Administrative Justice (TFJA) when resolving a contentious administrative trial. By issuing the isolated thesis number VIII-TA-2aS-2. Since this is an isolated criterion, “amparos” –injunctions– will begin to flood courts, since courts may adhere to it or differ from it.
The Yucatan Times
more recommended stories
Sea turtle nesting in Campeche on the rise
Mèrida, Yucatàn, (May 11, 2021).- Just.
Hubiku Cenote & Tourist Center the perfect spot to visit next weekend
Hubiku offers you a restaurant area.
On the same day, AMLO accuses the US of funding group and holds online meeting with Vice President Harris
MEXICO CITY — Just before an.
Sexual exploitation network is detected in 5 municipalities of Guanajuato
In the State of Guanajuato there.
Kanasín candidate denounces death threats against herself and her family
Mérida, Yucatán, (May 11, 2021).- “I.
General Archive of Yucatán: 10 million historical documents
The General Archive ensures the administration.
4 babies were born on May 10th, Mother’s Day, in the state of Yucatan
Mèrida, Yucatàn, May 11, 2021 (SIPSE).-.
The Maya community, without electoral representation in Yucatan
YUCATÀN, (May 11, 2021).- “The political.
The INAH closes the Tulum Archaeological Zone due to a case of Covid-19
(La Jornada Maya) Tulum, Quintana Roo,.
Mauricio Vila announces new measures for Yucatan
Mérida, Yucatán, (May 11, 2021).- As.