Economic activity is a rapid business turnover, accompanied by high competition, which sometimes presents the accountant with such unpleasant aids as interest and penalties. They may appear during the on-site inspection, and for the late submission of data, or reporting to the tax authorities, for late payment of taxes. The list is extensive. And not always the taxpayer knows how to properly reflect penalties and fines.
Instruction manual
1
If you have not received a tax notice indicating the accrued fines and penalties, contact the tax office assigned to your company. With you, the state tax inspector can open a base and tell you the full and exact amount of fines and penalties for all taxes.
2
If your organization agrees with the amounts of fines and penalties that were accrued during the tax audit for the incorrect reflection of business transactions, or if the court decision on this issue has already entered into legal force, then based on the decision on the audit act, proceed to reflect these penalties in accounting. According to the accounting rules, the amounts accrued for calculations with the budget must be taken into account necessarily, it is not allowed to leave unaccounted amounts on the balance sheet. Reflect fines and penalties only in the period by which the decision was made.
3
Please note that Article 270 of the Tax Code indicates that fines and penalties payable to the state budget and extrabudgetary funds are not reflected in the taxation of profits. Therefore, fines and penalties for late payment accrued by tax authorities cannot be taken into account in expenses when taxing profits.
4
Reflect the amount of tax penalties for the debit of account 99 in correspondence with the account "Calculations for taxes and fees." The instructions do not contain precise recommendations on the reflection of the amounts payable to the budget if penalties and fines have been charged for late payments to social insurance funds. Reflect them with an invoice related to social security and welfare calculations.
5
When preparing accounting documents in order to avoid gross errors in reporting, be sure to use the new Chart of Accounts.
