Correcting errors in a program is a complex and time-consuming process. In this article we will look at another way to correct expenses in tax accounting for income tax if they were reflected more than necessary.
The example will be useful for correcting errors made in routine operations for which there are no standard documents for correction. In this case, the error correction:
- in accounting will be made by the date of discovery;
- in tax accounting – by the date of occurrence, which will allow you to automatically fill out an updated declaration. At the same time, we “bypass” the automatic re-posting of all documents from the date the error occurred, because the sequence boundary is transferred manually.
Grounds for additional accrual
The Federal Tax Service posted letter No. BS-4-11/ [email protected] “On Taxation” dated November 16, 2015. This regulatory act explains the grounds for additional assessment. In particular, payments can be increased when the tax office has established and proven the fact that the payer has received income not indicated in the declaration. Representatives of the Federal Tax Service must also find the source of income, its type and time of receipt.
Let's consider other grounds for additional charges:
- Discovering tax benefits achieved through business division.
- Formation of controlled legal entities.
- The accountant made a mistake when calculating taxes.
Additional assessment is carried out when in fact a person must pay a larger amount of taxes than necessary.
How to pay additional taxes
Let's look at an example of paying additional taxes if they were assessed during an on-site audit. It is necessary to draw up a payment order for the transfer of taxes. It is filled out on the basis of Appendix No. 2 to Order of the Ministry of Finance No. 106n dated November 24, 2004. In particular, the payer needs to fill out the fields correctly:
- In field 104 you need to enter the budget classification code. The codes were approved by Order of the Ministry of Finance No. 150n dated December 30, 2009. If this is an order to pay taxes, you need to indicate code 182 1 01 01011 01 1000 110.
- In field 106 you need to indicate the basis for the payment.
- Field 107 indicates the frequency of tax payment.
- Fields 108 and 109 contain the details of the document on the basis of which the payment is made.
- Field 110 indicates the type of payment. If this is a tax transfer, you need to enter “TS”.
It must be remembered that the payer’s responsibility is not only to pay additionally assessed tax, but also to reflect transactions in accounting.
Accounting for additional accruals
Additional income tax may be charged if the following circumstances exist:
- Understatement of income by an entrepreneur.
- Inflated expenses.
- There are errors in the declaration.
If the understatement of expenses occurred in the previous period, the entrepreneur does not need to submit an updated declaration. The tax office itself will do this for him. In particular, representatives of the authority calculate the additional amount and then reflect it in the settlement card.
Sometimes there is a need to cancel expenses not only in accounting, but also in tax accounting. Let's look at an example. In the current year's accounting, it is required to reflect the profit of previous periods. A constant minus difference is created.
FOR YOUR INFORMATION! In most cases, changes in accounting do not entail adjustments in tax accounting.
Example
In 2015, the company went through a control event. The subject was found to be working with non-existent suppliers in 2014. Payment for goods in the amount of 65,000 rubles was withdrawn. Based on this amount, an additional income tax was charged in the amount of 13,000 rubles (65,000 * 20%). During the on-site inspection, an unreasonable increase in depreciation in the amount of 14,000 rubles was also discovered. And in this area there was an additional charge of 2,800 rubles.
The accountant makes these entries in 2015:
- DT99 subaccount “Losses of previous periods” KT68. Additional tax assessment. Primary: on-site inspection report.
- DT02 KT91. Fixation of profit in the amount of 14,000 rubles from previous periods, discovered in the current period.
- DT99 KT68 . Conditional expense in the amount of 2,800 rubles.
- DT68 KT99 subaccount “PNA”. Fixation of the LAD.
- DT99 KT68. Additional tax assessment for the previous year.
Adjusting income is carried out according to the same scheme as adjusting expenses.
Bug fix
Let's look at step-by-step instructions for correcting the amount of transport tax in tax accounting for income tax.
Do all the steps below first on a copy of the database, make sure from the final turnover that no other data will change, except for the turnover on accounts NU, 90.08.1, 90.09, 99.01.1.
Step 1. Create a balance sheet .
Generate the Turnover Balance Sheet (SAS) for 2021 in tax accounting (Reports - Turnover Balance Sheet). It is needed to verify balances after manual edits.
First adjust its shape. Click on the Show settings and set the parameters as shown in the figure.
Print the SALT and save it electronically.
Step 2 : Open the closed period.
Open the closed period Administration - User and rights settings - Change prohibition dates - Configure. Remove the editing ban date - 12/31/2019.
Learn more about how to set and remove the ban on editing data
Step 3. Correct the amount in NU in the entry for calculating transport tax.
Open the operation by which the program calculated transport tax for 2021 (Operations - Regular operations - Calculation of transport tax for December 2019). Click the button.
Select the Manual adjustment . On the Accounting and Tax , in the Amount NU Dt , indicate the correct amount of transport tax for the year - 8,850 rubles.
Manually correct the amount in the transaction for calculating transport tax for the year - only in tax accounting! Do not change anything in Accounting and in the Transport Tax Calculation
Button Record and close .
Step 4. Create a balance sheet according to NU.
Reform the Turnover Balance Sheet (SALT) for 2021 to control the closure of accounts in tax accounting (Reports - Turnover Balance Sheet).
You will see that in SALT there is a red balance in the account under the item Property taxes .
Now “remove” the red balance; to do this, follow the chain of “closing the year” and close 90 accounts.
Step 5. Closing the balance of the account and 90th accounts in NU.
We carry out this operation using the document Transaction entered manually, in which the resulting balance in tax accounts is manually closed:
- first by count;
- then along the account chain: 90.08.1, 90.09, 99.01.1
Please note that this operation will have to be created manually, because We fundamentally do not want automatic re-rolling of transactions for December 2021.
The document reverses amounts only in tax accounting. In accounting, i.e. in the Amount , do not indicate anything. Document date – 12/31/2019.
The transactions indicated in the document will be as follows if, at the end of 2021, a profit was generated in tax accounting.
Step 6. Check the balance of accounts in NU.
Reform the Turnover Balance Sheet (SALT) for 2021. Now there should be no account balances, 90, 99.
Step 7: Manually move the sequence boundary.
At this step, it is necessary to close December, without re-posting documents, i.e. manually move the sequence boundary to the month that was last closed before the changes were made.
Open the Month Closing procedure for the month following the month closed in the database (Operations – Month Closing).
In our example, the last month for which we closed the month was July 2019 , so we select August 2020 .
Click on the Perform month end closing .
In our example, we select the Close only August 2020 , i.e. the first month in your open period.
The figure shows that if you set the checkbox this way, the program will not resend documents from 12/31/2019 to 08/01/202 0, which is what we need. And the documents will be re-processed only for August 2021 - a period that was not previously closed.
We advise you to perform this manual border transfer in very extreme cases. When you are confident in the data that you enter and that it will not affect the reports already submitted.
Learn more about the nuances of manually moving a sequence boundary
Step 7. Create an updated income tax return.
Before submitting an updated declaration, pay additional tax to the budget, as well as accrue and pay penalties, otherwise the Organization will face a fine of 20% of the unpaid tax amount (clause 4 of Article 81 of the Tax Code of the Russian Federation, clause 1 of Article 122 of the Tax Code of the Russian Federation) .
The taxpayer is required to submit an updated return for the period in which the error was made. In our example for the fourth quarter of 2019.
In the program, tax accounting data is manually corrected by the date the error occurred. If the corrections in the NU are made correctly, the updated income tax return will be filled out automatically.
In the PDF cover page please include:
- Correction number – 1 , number of the updated declaration in order.
- Tax (reporting) period (code) – 34 “year” , code of the period for which the updated declaration is submitted.
In Appendix 2 to Sheet 02 on page 041 the amount of transport tax will be indicated correctly.
And accordingly, the amount of income tax on Sheet 02 on page 180 “Amount of calculated tax, total” should be indicated more by the amount of additional tax charged. In our example, for 1,770 rubles.
See also:
- The procedure for correcting errors in the control unit
- The procedure for correcting errors in NU
- The procedure for correcting errors in 1C
- Document Transaction entered manually type of transaction Document reversal
- Expenses for current year supplier services are inflated
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Additional VAT calculation
The situation with additional VAT charges is quite ambiguous. The law does not provide precise instructions on where additional VAT amounts are recorded. However, there are some recommendations. In particular, additional VAT charges must be reflected in expenses only if this circumstance exists - the amount of additional charges forms the initial cost of products or services (Article 170 of the Tax Code of the Russian Federation), but it was accepted for deduction by mistake. When an inspection report is received, the amounts are reflected in the cost price if they are already involved in determining income tax (based on letter of the Ministry of Finance No. 03-07-11/222 dated June 7, 2008).
In all other circumstances, additional VAT is not included in expenses. The basis is subparagraph 19 of Article 270 of the Tax Code of the Russian Federation. It states that the tax that was charged to the buyer cannot be accepted as an expense. However, there is an alternative opinion. In particular, VAT can be included in other expenses on production and sales that reduce the base (subclause 1 of clause 1 of Article 264 of the Tax Code of the Russian Federation). In particular, some courts adhere to this position. An example is FAS Resolution No. A32-5096/2007-12/27 dated August 10, 2009.
If a person does not want to enter into conflicts with the tax authorities, then you should not include additional VAT charges in expenses. Only the permanent liability is reflected.
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Document
Ruling of the Supreme Court of the Russian Federation dated November 30, 2016 No. 305-KG16-10138.
Situation
During the on-site audit, the tax inspectorate assessed additional income tax and mineral extraction tax (MET) to the organization. At the same time, by virtue of paragraphs. 1 clause 1 art. 264 of the Tax Code of the Russian Federation, mineral extraction tax is taken into account as part of other expenses. However, taxable profit was not reduced by the amount of additionally accrued mineral extraction tax. In addition, fines and penalties for incomplete payment of income tax were assessed on a larger amount of this tax. The organization challenged these actions of the inspectorate in court.
Position of the tax inspectorate
The taxpayer must correct the errors that led to excessive payment of income tax according to the rules of Art. 54 Tax Code of the Russian Federation. The tax authority cannot make such an adjustment.
The court's position (decision in favor of the taxpayer)
Within the meaning of Art. 89 of the Tax Code of the Russian Federation, based on the results of an on-site audit, the tax authority must have complete information about the financial and economic activities of the taxpayer in the audited period (including information on income and expenses for the relevant taxes). Consequently, having accrued additional mineral extraction tax during the audit, the inspectorate is obliged to reduce taxable profit by the amount of this additional accrual (according to paragraph 1, paragraph 1, Article 264, paragraph 1, paragraph 7, Article 272 of the Tax Code of the Russian Federation), if income tax was included in the subject of the exit checks.
Similar position
Ruling of the Supreme Court of the Russian Federation dated October 09, 2014 No. 302-KG14-2143
Resolution of the Presidium of the Supreme Arbitration Court of the Russian Federation dated July 6, 2010 No. 17152/09
Resolution of the AS of the West Siberian District dated 06/03/2015 No. F04-18551/2015
Recommendations
If, after an on-site inspection, the inspection assesses additional taxes that are included in income tax expenses, it is obliged to take these additional accruals into account when determining taxable profit, but only if income tax is the subject of this inspection.
Otherwise, you can refer to the above decisions of the Supreme Court of the Russian Federation and the Supreme Arbitration Court of the Russian Federation, which should also be followed by the tax authorities. This follows from the letter of the Ministry of Finance of Russia dated November 7, 2013 No. 03-01-13/01/47571 (brought to the tax authorities by letter of the Federal Tax Service of Russia dated November 26, 2013 No. GD-4-3/21097).
For information on what taxes (fees) can be included in income tax expenses, see here.
What to do if a large amount of taxes has been assessed
Representatives of the government agency carry out additional assessments based on the results of establishing the correctness of pricing for transactions. Additional charges are made only when the transaction price deviates from market prices by more than 20%.
When increasing the amount of taxes, tax representatives must be guided by Article 40 of the Tax Code of the Russian Federation. This is an article that establishes the principles for determining the cost of goods and services. This regulatory provision specifies the grounds for additional charges. In particular, this is the percentage of deviation from market prices.
If an entrepreneur does not agree with the additional accrual, he can challenge the decision on the grounds that the representatives violated the provisions of Article 40 of the Tax Code of the Russian Federation. For example, paragraph 3 of Article 40 of the Tax Code of the Russian Federation is often violated. In this case, tax authorities do not set market prices. When recalculating the tax, the cost indicator is used. Such a decision is declared illegal (paragraph 4 of the Letter of the Presidium of the Supreme Arbitration Court No. 71).
Why can you be charged additional personal income tax?
For now, the tax office identifies underpayments manually, but approaches are being standardized
Last year, a number of publications appeared in the media about how the income of individuals is controlled in Russia. We discussed it for a long time and even adopted a law on the self-employed. In general, society was scared. But is everything so scary?
Today, Russians’ incomes are monitored by tax inspectors through desk and field inspections, and inspections are also carried out by banks and Rosfinmonitoring. But they are all fragmentary. In addition, individuals do not keep any records, so it is very difficult to identify, let alone prove, the presence of undeclared income.
In this regard, one of the biggest risks of additional charges from the Federal Tax Service is now associated with the acquisition of assets below market value and the reclassification of transactions (for example, loans) as donations.
What can additional taxes be charged for?
Thus, the Supreme Court of the Russian Federation reached case No. 53-KG16-27, in which the tax authority assessed additional personal income tax at a rate of 13% on the amount of the difference between the market price of an apartment purchased by a person and the purchase price. The court upheld this decision, concluding that the individual received income in kind.
Why is it important?
Many people still arrange the purchase of real estate, including elite ones, “through a cell”, lowering the transaction price. Sellers do not want to pay taxes, although according to the law, the cadastral value must be taken to calculate them, and buyers, for example, officials, cannot confirm the source of income. Both of them are potential “clients” of the tax service. The only question is the efficiency of administration.
As for the reclassification of transactions as a gift, a person who has received an interest-free loan from an affiliated organization or another individual can receive an additional charge of 13% of its amount. The Federal Tax Service and the courts consider such transactions as sham, made without the purpose of repaying the loan. Here, entrepreneurs who use loans for reinvestment or withdrawal of dividends are mainly at risk, but individuals also very often provide loan agreements to the bank to justify the source of funds in the current account. The risk is high, since there is no fact of repayment of loans.
Another category of additional charges is related to the identification of undeclared income, including using the VKontakte, Instagram, and YouTube networks. For example, the tax authority monitored the “Goods to Order” group on the VKontakte network and identified those who published advertisements with offers to sell goods. After placing an order in the group, participants paid for the goods within 1-2 days by transferring money to individuals’ cards. The inspectorate, through the group, interviewed a number of buyers, and they confirmed that they transferred funds to bank cards specifically for the goods. All this proved the conduct of business activities, receipt of income and, accordingly, non-payment of taxes, which served as the basis for additional assessment of taxes (resolution of the Thirteenth Arbitration Court of Appeal dated March 14, 2018 No. 13AP-464/2018 in case No. A26-7023/2017).
How do banks get involved in this?
In addition, banks are required by law 115-FZ (anti-money laundering) to find out the source of funds in accounts. A high-profile case was when a client’s deposit was not returned because he did not confirm the origin of the money on the date of deposit. Moreover, many banks have now introduced protective tariffs on payments from legal entities and individual entrepreneurs to the accounts of individuals. The goal, of course, was good - the fight against cashing out, but in practice even the payment of dividends is subject to prohibitive tariffs. There are already precedents when an individual collected a debt from a legal entity through the court, applied to the debtor’s bank with a writ of execution, but his bank imposed a tariff of 20% on the funds received into the account.
Tax officials also contact banks with requests to obtain information about transactions on individual accounts. Now this can be done in accordance with the letter of the Federal Tax Service issued in 2021 “On the provision by the bank of certificates (statements) on the accounts of clients (individuals, individual entrepreneurs) at the request of the tax authorities.” This form of control makes it possible to identify the receipt of funds into a person’s account, the receipt of income and, accordingly, non-payment of taxes. However, this practice has not yet found systematic application - there is no unified monitoring system.
Also, the receipt of undeclared income is discovered by chance when checking contractors, legal entities or when complaining from employees. There are cases when tax authorities, in the fight against gray salary schemes, analyze the movement on employee cards; If they establish the fact of a systematic and one-time deposit of cash onto cards, then they conclude that salaries are paid “in an envelope.” Next comes an audit of the organization. The organization is a tax agent, but no one relieves individuals of the obligation to pay taxes.
All these are examples of the informal approach of tax authorities, which have long been focused on the essence of transactions and the economic meaning of interrelated transactions, and not on the form. Yes, a good methodological base is being created, but in fact, control is carried out manually. In addition, there are huge resources for collecting information about expenses - banks, traffic police, Rosreestr, auto exchange, social networks, notaries, etc. Therefore, it is natural that in the near future the Federal Tax Service will be able to introduce an automated personal income tax control system, and then the likelihood of evading payment taxes for individuals will be reduced to almost zero.
Taken from source: Vedomosti
