Business activity is a rapid business turnover, accompanied by high competition, which sometimes presents the accountant with such unpleasant opportunities as the accrual of penalties and fines. They can appear during an on-site audit, and for late submission of data, or reporting to the tax authorities, for late payment of taxes. The list is extensive. And the taxpayer does not always know how to correctly reflect penalties and fines.
Instructions
Step 1
If you have not received a notification from the tax authorities, where the accrued fines and penalties are indicated, contact the tax office assigned to your company. The state tax inspector can open the base with you and tell you the full and accurate amount of fines and penalties for all taxes.
Step 2
If your organization agrees with the amounts of fines and penalties that were accrued during the tax audit for incorrect reflection of business transactions, or if the court decision on this issue has already entered into force, then, based on the decision on the audit act, proceed to reflecting these penalties in accounting. According to the rules of accounting, the amounts accrued for settlements with the budget must be taken into account without fail, it is not allowed to leave unaccounted amounts on the balance sheet. Reflect fines and penalties only in the period after which the decision was made.
Step 3
Please note that Article 270 of the Tax Code specifies that fines and penalties payable to the state budget and extra-budgetary funds are not reflected in income taxation in any way. Therefore, fines and penalties accrued by tax authorities for late payment cannot be taken into account in expenses when taxing profits.
Step 4
Reflect the amount of tax penalties on the debit of account 99 in correspondence with the account "Calculations for taxes and fees". The instructions do not contain precise recommendations for reflecting the amounts to be paid to the budget if penalties and fines were charged for late payments to social insurance funds. Reflect them with the account related to Social Security and Security calculations.
Step 5
When drawing up accounting documentation, in order to avoid gross errors in reporting, be sure to use the new Chart of Accounts.
