Tax accounting is The purpose of tax accounting. Tax accounting in the organization

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Tax accounting is the activity of summarizing information from primary documentation. The grouping of information is carried out in accordance with the provisions of the Tax Code. Payers independently develop a system by which tax records will be kept. The main purpose of the activity is to determine the base of mandatory budget allocations.

User groups

The purpose of tax accounting is determined by interested parties. Information users are divided into 2 categories: external and internal. The last one is the administration. For internal users, tax accounting is a source of information about non-production costs. These costs, in accordance with the provisions of the Tax Code, are not taken into account when calculating the base. these include, in particular, the costs of various types of remuneration paid to employees or executives, except for the remuneration established by the contract, as well as the amount of material assistance. By reducing costs, taxable income can be optimized. External users are primarilycontrol structures and consultants on the application of the provisions of the Tax Code. The tax authorities assess the correctness of the formation of the base, the conduct of calculations, and control the receipt of imputed payments to the budget. Consultants give recommendations on minimizing deductions, determine the direction of the company's financial policy.

Functions

Taking into account the interests of users, several tasks should be noted, the implementation of which is ensured by tax accounting. This is:

1. Formation of reliable and complete information on the amount of income and expenses of the payer, in accordance with which the base for mandatory deductions in the reporting period is determined.
2. Providing information to external and internal users to control the correctness, timeliness of calculation and payment of amounts to the budget.
3. Obtaining by the administration of the enterprise of information that allows optimizing payments and minimizing risks.

Specific data generalization

Group of information from primary documentation acts as a means of implementing the above tasks. Accounting and tax accounting closely interact with each other. Meanwhile, these systems implement different tasks. In particular, tax accounting in an organization involves only generalization of information. Data collection is carried out by primary documents. Tax accounting in the organization should reflect:

1. The order in which the amounts of income and expenses are formed.
2. Rules for determining the proportion of costs thatare taken into account for taxation in the current period.
3. The value of the remaining costs that are carried over to the next time period.
4. Rules for the formation of the amount of formed reserves.
5. The amount of debt for settlements with the budget.

Tax accounting information is not shown on accounting accounts. This provision is fixed by Article 314 of the Tax Code. Confirmation of tax accounting information is carried out:

1. Primary documentation. It includes, among other things, an accountant's certificate.
2. Analytical registers.
3. Calculating the tax base.

Objects

Tax accounting is a generalization and comparison of information about the income and expenses of an enterprise to determine the loss and profit. The latter, in accordance with Article 247 of the Tax Code, is the amount of funds received, reduced by the amount of costs. Expenses in tax accounting are divided into those that are taken into account in the current period, and those that are carried over to the upcoming ones. One of the key tasks is to determine the amount of mandatory payments and the amount of debt on deductions from profits on a specific date. The subject of accounting is the non-production and production activities of the organization, in the implementation of which it becomes obliged to pay tax.

Principles

Record keeping is based on the following key principles:

1. Money measurement.
2. Propertyisolation.
3. Business continuity.
4. Temporal certainty of the facts of economic life.
5. The sequence of application of the rules and norms of the Tax Code.
6. Equal recognition of costs and revenues.

Money measurement

In accordance with article 249 of the Tax Code, sales proceeds are determined by all receipts related to payments for sold products or property rights, which are expressed in natural or monetary forms. From Art. 252 of the Code, it follows that justified costs are those that are economically justified. Moreover, their assessment should be presented in monetary terms. Income, the value of which is calculated in foreign currency, is taken into account in combination with income, the amount of which is reflected in rubles. In this case, the first ones are recalculated at the rate of the Central Bank.

Property isolation

Material assets owned by an enterprise should be accounted for separately from objects owned by other persons, but located in this organization. In the Tax Code, this principle is declared in relation to depreciable property. They recognize material values, products of intellectual labor and other objects owned by the enterprise.

Business continuity

Tax accounting must be maintained throughout the life of the enterprise from the date of its registration to liquidation/reorganization. This principle is used when establishing the procedure for calculating the depreciation of property. accru althe corresponding amounts are carried out exclusively during the period of operation of the enterprise and cease at the end of the activity.

Temporal certainty of facts

According to art. 271 of the Tax Code, income is recognized only in the reporting period in which they arose. At the same time, the actual receipt of funds, property rights, material values does not matter. According to Article 272 of the Tax Code, expenses that are accepted for taxation purposes will be recognized as such in the period to which they relate. At the same time, the time of the actual payment of funds or the payment in another form does not matter.

Other principles

Article 313 of the Tax Code contains a provision according to which the payer is obliged to consistently apply the rules and norms of tax legislation from one period to another. This principle applies to all objects, information about which is summarized to form the taxation base. Articles 271 and 272 define the need for equal recognition of costs and revenues. This principle assumes that expenses are recorded in the same period as the income for which they were made.

Accounting and tax accounting

When forming a system for collecting and summarizing information to determine the tax base, an economic entity must take into account a number of requirements. Tax accounting should be organized in such a way that information from the primary documentation provides the opportunity:

1. Continuously reflect the facts of economic life in chronological order.
2. Organization of events.
3. Formation of indicators of the declaration on deductions from profits.

Unlike accounting, which is carried out strictly according to PBU and the chart of accounts, strict standards are not provided for tax accounting. In this regard, the generalization of information to determine the tax base is carried out by the subject according to a system developed by him independently. At the same time, the tax authorities cannot establish mandatory forms of documentation used by the enterprise for all.

Reporting methods

A company can create an autonomous accounting system that is not related to accounting. Each operation in this case will be reflected in the register. The second method is the organization of tax accounting using accounting information. This option is less labor intensive and, accordingly, more expedient. This method is consistent with the provisions of Article 313 of the Tax Code. This rule establishes that the calculation of the base at the end of each reporting period is carried out in accordance with tax accounting data, if in Ch. 25 of the Tax Code provides for the procedure for grouping and summarizing information about objects and operations to form a tax base, which differs from the scheme established by the accounting rules. If the provisions coincide, then the calculation of the amounts of mandatory contributions to the budget can be made using the information in the primary documentation. In this case, it is necessary first of all to determine the objects that are accounted for by the same and different tax and accounting rules. Then it is necessary to develop a procedure for applying information from primary documentation to form a taxation base. In addition, it is necessary to create forms of registers to highlight objects that are taken into account for taxation purposes.