The deductibility of the fishing license as an intangible asset of limited duration

Abstract

Currently, there is an interpretative conflict between the Tax Administration (AT) and the Tax Court (TF) regarding the deductibility of fishing licenses in the Income Tax. According to the AT and the TF, the license is classified as an intangible asset with unlimited duration, excluding it from being deductible under Article 44 of the Consolidated Text of the Income Tax Law. In contrast, the Supreme Court, in various Appeals, argues that the fishing license is an intangible asset inseparable from the fishing vessel, with its validity linked to the asset's useful life. This interpretation is based on a systematic analysis of tax regulations, the General Fishing Law, and its regulations.

The research problem focuses on determining whether the AT and the TF should interpret tax regulations systematically along with sector-specific norms and the jurisprudence of the Supreme Court. The qualitative research analyzes four Appeals from the Fifth Supreme Court to address the limited nature of the license and its deductibility in Income Tax. The study population comprises the mentioned Appeals, representing cases where objections by the AT and the TF are discussed in tax litigation proceedings.