Materiality of Operations Can It Be Proven with a Contract

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pujamonidas99
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Joined: Tue Jan 03, 2023 5:54 am

Materiality of Operations Can It Be Proven with a Contract

Post by pujamonidas99 »

Much has been said about the materiality of the operations and their accreditation before the tax authorities, especially to verify the origin of the deductions, despite the fact that the term of materiality is not defined in laws or codes, much less is there a "recipe ” to test it. Thus, as has been said in previous blogs on the subject , the materiality is a function of the operation that is intended to be verified , according to the particular circumstances of each case. While there is no doubt that there are certain basic elements that assume the veracity of said operations, for example, something as obvious as having a workplace, hired personnel, the papers that demonstrate the completion of a work or a service.

The reality is that the authority requires (many times in excess of its faculties) all the possible documents to be sure of the effective performance of the operations. The tax authorities have the power to verify the materiality of the operations in this sense, let us remember that the authority can question the veracity of the operations when it detects the Industry Email List absence of assets, personnel, infrastructure and material capacity, therefore, in principle, these elements are considered basic to generate certainty about the effective provision of services. Or disposal of assets, that is, it cannot be assumed that services were provided if there is no staff in charge , therefore, verifying the possession of these elements is key to supporting the materiality of the operations.

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Let's not lose sight of the fact that the concept of materiality of operations has its opposite: simulation of operations, and it is precisely what the authority seeks to avoid, with the consequent damage to the treasury that it entails. With what elements can i check the materiality of the operations? In addition to the above, there are other fundamental components in addition to those already indicated, with which the veracity of the provision of services or the sale of goods can be proven, for example, the execution of a contract , obviously between the interested parties. Although the debate persists, it is frequently questioned whether the mere display of the respective contract can prove the materiality of the operations that have been questioned by the tax authority.
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