Tax authorities will recalculate company payments if an audit reveals non-compliance with requirements
Legal entities operating under the fourth group of the simplified tax system may lose this status under certain circumstances. Regulatory authorities will revoke the registration if criteria set by tax legislation are violated or if business activity ceases. This was reported by Головне управління ДПС у Київській області, according to the portal PromPolitInform.
The State Tax Service notes that the registration status is perpetual, but there are clear grounds for its cancellation as stipulated in Article 299 of the Tax Code. One reason is a business entity’s voluntary decision to abandon the simplified system, after which registration is terminated on the last day of the quarter.
Grounds for Exclusion from the Registry
Other conditions leading to the revocation of status include the liquidation of an enterprise, except in cases of reorganization through transformation. The list also includes a reduction in the share of agricultural production below 75% for the reporting year and the systematic failure to submit mandatory tax reports.
A separate factor is the imposition of special economic sanctions against the business, its founders, or beneficiaries. In such cases, the exclusion from the Single Taxpayer Registry occurs at the end of the quarter in which the decision to impose restrictions was made.
Financial Consequences of Identified Violations
Controllers pay special attention to on-site documentary audits. If auditors determine that a company did not meet the criteria for the fourth group in the current or previous periods, strict measures will be applied.
In such a situation, the fiscal service will charge all taxes and fees from which the enterprise was previously exempt, and will also impose penalties. Starting from the month following the one in which the violation was recorded, such an entity is required to switch to the general taxation system.
Photo: Фотоколаж ГУ ДПС України у Київській області
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