Audit Office: Corporations Should Recognize Disability Employment Contributions as Tax Deductions

The Audit Office has determined that disability employment contributions, which are intended to encourage companies to hire individuals with disabilities, should be recognized as deductible expenses when calculating corporate taxes.
 
On September 8, the Audit Office released key decisions on four tax-related cases and one industrial accident case from the first half of the year, closely related to public life.
 
The Audit Office concluded that disability employment contributions are more of an 'incentive and regulatory special burden' aimed at promoting the employment of individuals with disabilities rather than a punitive measure for non-compliance. Therefore, it deemed the rejection of companies' requests for tax refunds based on these contributions as unlawful. A total of 525 related appeals were filed.
 
In another decision, the Audit Office ruled that a company that outsourced the production of health supplements should not be denied small business corporate tax reductions. The ruling considered that the products bore the company's trademark and that it held relevant intellectual property rights, effectively making it a direct planner of the products produced by the contract manufacturer.
 
Additionally, the Audit Office stated that if a property leased to a spouse is used to operate a senior welfare facility, the owner should be granted a tax reduction if they are substantially responsible for the facility's operations and decision-making. It also ruled that land acquired for the construction of a religious facility should not have its tax reduction denied simply because it could not be used directly before the legal grace period of five years had elapsed.
 
In the industrial accident sector, the Audit Office found it unjust to impose workers' compensation insurance payment obligations on an employer when a noise-induced hearing loss victim had only worked at the current workplace for one month, having been exposed to noise for four years and eight months at a previous job.
 
Looking ahead, the Audit Office plans to strengthen its dedicated organization and personnel for handling appeals and expand the scope of claims to include financial and personal data protection.