Directions of Judicial Interpretation of the Concept of Tax Deductible Costs

Abstract

The article presents a critical analysis of the judicial decisions of administrative courts in cases in which the concept of tax deductible costs was interpreted. As a result of this analysis, a discrepancy was identified between the judiciary’s understanding of this concept and the statutory wording of the provisions defining it. The article identifies administrative court rulings that contain clear inconsis-tencies involving the application of statutory wording inconsistent with the legal framework in force at the time when a given tax liability arose. It is demonstrated that the judiciary’s interpretation of the concept of tax deductible costs had a posi-tive impact on the development of the current statutory wording of this concept by making the legislator aware that the previous legal definitions of tax deductible costs did not correspond to economic reality, which ultimately resulted in their supplementation with costs incurred for the purpose of maintaining or securing a source of revenues.