In many countries, tax penalties are not an allowable expense when calculating the tax on profits, so it is best to keep them in a separate account so that whoever does your tax computation can easily identify them and add them back in the tax computation. Same applies to other items that may also not be allowable for tax purposes.
Adding an account is a fairly quick process and could save further penalties, especially if your tax system charges penalties on wrongly claimed amounts. If there are many such items in your tax system, create a header account with underlying accounts to avoid missing items and make your accountants' life easier Regards Jean-Pierre _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ /_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/ Jean-Pierre Guillou Director DCDM Management Services Ltd Tel PABX : (230) 202 3000 Tel Direct : (230) 202 3057 Fax : (230) 208 0086 eFax : (44) 7006 030 893 Web :www.dcdm-ms.com ******************************************************************** Privileged/Confidential Information may be contained in this message. If you are not the addressee indicated in this message (or responsible for delivering the message to the intended recipient), you should not read it, nor copy or deliver this message to anyone. In such case, you should destroy this message and kindly notify the sender by reply E-mail. Opinions, conclusions and other information in this message that do not relate to the official business of any member firm of the DCDM Organisation shall be understood as neither given nor endorsed by the firm. On 11 May 2010 20:33, Jeff Kaminsky <[email protected]> wrote: > I didn't feel like creating an account called Tax penalties, this is pretty > much the first penalty we've had. What account would you use? > Business Tax account > Business Tax Penalty Account? > Something else? > Misc? > > > -- > > Jeff Kaminsky > Sr. Accountant > IX Systems > 408-943-4100 ext 122 > > _______________________________________________ > SQL-Ledger mailing list > [email protected] > http://lists.ledger123.com/mailman/listinfo/sql-ledger >
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