Can the fines paid be a tax cost?


A significant group of entrepreneurs use company and private vehicles as part of their business activities. The slogans "time is money" or "just in time" oblige to act quickly, and this is also associated with fines for speeding. Can the fines paid be a tax cost?

Penalty received according to the PIT Act

Pursuant to Art. 22 sec. 1 of the PIT Act "tax deductible costs are costs incurred in order to achieve income or maintain or secure a source of income, except for the costs listed in Article 23."

This means that only expenses related directly or indirectly to the revenues generated may be the tax expense. At this point, it could be supported by the statement that the mandate will be a company's expense, because the entrepreneur received it in a hurry to an important meeting or carrying goods to the contractor, which will result in future income.

However, the legislator in Art. 23 of the PIT Act excluded penalties and fines imposed in criminal, fiscal and administrative penal proceedings and in cases of offenses from tax deductible costs.

It should be clearly stated that fines for non-compliance with road traffic regulations cannot constitute tax costs. The same applies to possible costs of the enforcement of fines in the form of handling fees or bank fees for debiting the amount from the company's account.

Unfortunately, an attempt to justify the reasons for exceeding the road traffic regulations with an indirect relation to the revenues generated will not be possible.

Invoice from the leasing company

Entrepreneurs who use vehicles under leasing contracts can expect an additional burden from the lessor if they receive a mandate. These companies invoice a fee for providing information to law enforcement authorities about the vehicle using the vehicle. So you can expect an additional expense of about PLN 50 net. Unfortunately, such an expense also cannot be classified as a tax expense because it is directly related to the mandate received.