Abstract

In 2018, regarding the construction of the corporate income tax, two sources of income were separated: capital gain and other sources. Other than illegitimate influence, this separation does not have any systemic justification, moreover, it creates new problems. Those stem from the fact that it is not always possible, in a way without a doubt, to connect specific revenue to one of the sources, and also to match non-deductibles to them, especially indirect ones, which by nature are not directly connected to specific revenue. The problem of allocation of indirect costs to revenue counted as two sources based on the lack of clear-cut regulations has become a source of disputes. In the actual state being the subject of the decision of the Supreme Administrative Court II FSK 2627/20 tax authorities put questionable costs, capital gain, in a form of interest to the source. Other position was adopted by the Supreme Administrative Court, which stated that when a taxpayer receives revenue from the source, capital gain and other revenue from other sources, and bears other costs than the ones directly connected with revenue, an allocation formula is being applied according to a revenue key. The stance deserves approval.