Taxation aspects of marketing strategies employed in car sales

Abstract

On the basis of one case study for each, two basic strategies (“pull” and “push”) aimed at achieving extensive expansion in car sales are analysed here from taxation aspects. These demonstrate cases that do not follow the mainstream practice of corporate value creation in Hungary – an example is the loan designs with zero-percent THM [Total Annual Loan Cost Indicator]. However, in the case of the tax impacts of these designs, the tax authority often questions the justification for lowering the taxable amount on one side, while does not object the increase in the taxable amount on the other side of the transaction. As a result, when the objected issues have been decided – irrespective of which party has been awarded – there are no changes in the total tax revenue, but the tax authority has created market disturbances of various direction and strength in the process