According to Taxology lawyers, this ruling should reduce the wave of tax disputes connected with accounting of compensations paid to employees dismissed by agreement of the parties that have arisen in the last couple of years. Moreover, the company adds that this range — one to five average monthly salaries (plus a slight deviation from it) — is not an absolute limit: the taxpayer has the right to justify higher payments.
"However, in this case, there is a need to prove prove the circumstances that confirm the amount of such compensation: for example, in respect of top managers, as in case no. A40-36 068/15 of LLC Equant, where the company proved the validity of provision on compensation in the amount of 14.5 average monthly salaries included in the employment contract when hiring" says Taxology representative.
In any case, this ruling allows us to hope that the tax authorities will now be limited in assessing the appropriateness of a taxpayer's decisions, at least in this particular category of disputes.