Peter Varga lectured for the Slovak Chamber of Tax Advisors: company card and private expenses – where are the boundaries?

What are the tax, commercial and criminal risks associated with the use of company funds for private purposes? This question was also dealt with in our Peter Varga’ s expert lecture for tax advisors in the framework of training at the Slovak Chamber of Tax Advisors of the Slovak Republic.

The lecture focused on the increasingly discussed topic of the use of corporate cards and assets for private purposes, with a practical overview of the key risks from the perspective of tax, commercial law and criminal law. Peter Varga touched on the following key areas in his lecture:

• Use of company property for private purposes – these are situations that are common in business practice, but often underestimated – from the use of a company car for private driving, through excessive cash in the cash register to the provision of interest-free loans to shareholders or directors.
• Tax consequences of such practices – how the Tax Administration assesses such transactions – when it is a non-monetary transaction, what needs to be taxed, how the market price is determined and where is the line between legal tax optimization and tax evasion.
• Commercial liability of statutory bodies and shareholders – the discussion also touched upon the liability of statutory bodies, in particular the duty to act with professional care, to manage the company’s assets for the benefit of the company and the possible consequences of a breach of these duties. We are also preparing a very useful webinar on the issue of directors’ liability, which you can purchase on the link Director without risks: reality or myth?.
• Criminal law risks – The conclusion of the lecture belonged to what entrepreneurs and executives often underestimate – the criminal law dimension. From unauthorized disposal of company property, through machinations in the management of foreign property to tax evasion.

The line between legal and illegal tax optimisation, also in this sphere, is often very thin in practice. Its correct assessment and subsequent adjustment of individual internal relations within the company as well as structures requires linking the worlds of tax and law but also a sense of detail. This is what we at Highgate Group provide to our clients under one roof, minimising adverse effects, whether on the company or the statutory officers themselves.

If you are interested in this topic, please do not hesitate to contact us:

• Peter Varga, e-mail: peter.varga@highgate.sk

For more on tax and in particular tax and levy optimisation, see this section of our website: tax and levy optimisation

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