Can we expense the benefits provided to the family of an employee who passed away due to work accident?
One of our employees passed away due to an accident that happened when he was coming to work in our company car. As his dependants, his spouse and 2 children will be made the necessary payments out of our employer’s liability insurance and traffic insurance. We also paid the severance pay and death indemnity of the employee to his dependants.
What I would like to ask is that we want to pay his 2 children until 18 and we want to pay them a certain amount monthly if they continue their education until 25.
It is stated in our employment legislation that the children and dependents of an employee who passed away due to work accident may be provided benefits this way. Is it possible to recognize it as an expense within proportion to the employee’s fault in accordance with Paragraph 3 of Article 40 of Income Tax Law? Or is it a non-tax-deductible expense (KKEG)? Should there be a tax cut during the payment to the dependant’s account?
The payments are booked as KKEG.
Source: İSMMMO
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