Risks of Losing Documents

Unfortunately, there are lots of instances where people might lose the critical aspects. Are you one of them who lose the documents and other legal aspects before you go for company registration in chennai? Here is all that you should know. Read ahead to know more! 

Risks of losing accounting documents

When working with accounting documents, risk management is essential to solving almost all tasks. But what is important is the legitimacy of the company’s income and expenses during tax inspections and the validity of the document.

Circumstances exist The storage of accounting documents prescribed by Public time law is not sufficient to fully secure the protection of the interests of the company.

First, let us explain that the concept of “accounts receivable” is used by tax law. In real practice, situations often arise where a company is unable to collect debts from the opposite party for one reason or another. In this case, accounts receivable arise (it is not the company that has to pay, but it is indebted to it). Receivables can be “disabled” for months, and maybe even years.

As a rule, such situations arise due to the bankruptcy of the debtor.

But another reason is possible – a dishonest entrepreneur (taxpayer) can get a very significant refund. From money taxation. For example, goods were delivered, but their payment was made “unofficially,” not to the current account or to the company’s cash desk. In a company’s tax accounting, the “loss” of such a transaction reduces the profit made by the company – resulting in a reduction in the amount of tax paid to the budget.

Situations like these seem to occur as rare exceptions, but tax officials remember them – they show vigilance and distrust, from which even honest companies suffer. Current law on accounting and taxation contains special rules for calculating and writing off future non-refundable receivables.

It shows that the courts are considering the request of the arbitral tribunal examiner to issue documents confirming the receipt of such documents even if the storage period (5 years) has already expired. If you can’t deliver them, alas, you’ll have to pay extra tax on profits you haven’t seen, as well as fines and penalties.

We recommend to remember the promise of the law on accounting that the retention period of primary accounting documents is 5 years. After that, do a simple arithmetic calculation to calculate the time you need the accounting documents.

Again, difficulty arises if there is a loss in the functions of the system.  Tax accounting according to the rules it is discounted within 10 years. Considering that the tax audit has been carried out for the last 3 years, it is essential that the shelf life of such documents grows to 13 years.

In the event of a loss as a result of writing the accounts receivable (and not allowed until 3 years before its writing event), the period increases to 16 years! In fact, more may be needed. Layer life , because if the debtor somehow confirms his obligations (for example, if he signs the settlement reconciliation process) the 3-year reference period for determining receipts may be deferred.

If there are no documents – writing off unreasonable expenses for expenses, underestimation of the taxable base for income tax, penalty for non-payment of tax and penalty of non-full term penalty by the tax inspector. Fee. How many people will run in 16 years ?!

The versatility of such documents should also take into account the retention period of the accounting documents when evaluating .

For example, the invoice may contain the customs notification number required by customs officials, in addition to being used to calculate VAT.

If a company purchases a batch of goods as a raw material for production, it does not need a customs notification number in the future. But if you buy goods from an importer and resell them over time, you can only answer customs officials’ questions about the source of the goods with the help of an invoice (only the number of customs. Declaration that the goods were imported into Russia).

Risks of losing contracts

Sales contracts, even the relatively simple type of contract, create a lot of problems in determining their storage time.

These documents are proof of ownership required.

If we analyze sales contracts in the light of the “list of routine management documents created in the operations of the companies, indicating storage periods”, such documents should be stored for 5 years after the transfer of ownership. In fact, these contracts are required to hold for the full term of the ownership of the acquired property and sometimes for a longer period of time. It all depends on the type of property and the circumstances.

When it comes to real estate:

The tax audit at may require a sale and purchase agreement to ensure the correctness of the calculation of the initial price of the fixed asset and the calculation of depreciation.

During this time the property is sold Documents are required to determine the cost of the sale process, calculate the profit of the transaction, and justify the income tax calculation. From this point on, the requirements for keeping the document covered are for documentary sources of expenses for tax purposes. If the company is unable to confirm the purchase price of the property, income tax must be paid on the total proceeds of the sale of the property, excluding the cost of purchasing it.

If the securities are the object of sale, then all that has been said about real estate is valid for this type of property.

But there are also specific moments. If your company fails to prove its rights to share ownership, it is expected:

Financial losses (which is the value of the shares and the income that can be derived from them)

Loss of control over a company in which the company owns shares.

In the situation of active trial developed in our country, the loss of the contract to sell shares in the authorized capital of a company or shares can be used successfully against you.

If the object of sale is the vehicle , at any time during operation, information about its history and purchase cost may be required.

There is a gap in the law about investment agreements . Civil Code You will not find this type of contract. Accordingly, it is not mentioned in other regulatory documents.

Layer life Such contracts should be determined in each case based on its consequences Contract loss .

In fact, they must be kept at all times until the return on investment and until the expiration of the law of limits on all types of relations arising while working under such contract.

Analysis Loss Risks All types of contracts – the title of a separate article. Therefore, we focused on the most common sales deals. Now let’s consider the risks of loss in the following groups of documents .

Risks of losing tender documents

If the bulk of the public procurement goes through contests and tenders, the tender documents are an additional document confirming the legitimacy of the transaction. In addition, if there are any problems with the quality of the goods purchased or the work performed, tender documents may be required to confirm the conformity or non-compliance of the purchased goods or services with the terms of the tender. .

The retention period for such documents is determined by law for 3 years (see Sections 28 and 37 of the Federal Law No. 94-FZ of July 21, 2005 “On issuance of orders for delivery of goods, performance of work, provision of services to state requirements”).

Risk of losing required documents during verification or court proceedings

If previously installed the document storage period is out of date, but they may be required during verification or testing, and such documents cannot be deleted later! The document is a weapon  case and shield during tax and other audits. The company cannot be unarmed when it comes to finance and security.

Also, for this reason, the whole case is not subject to long-term storage, but only certain documents from a specific folder.

Periods of possession of documents may be required during the determination of the case, and it is necessary to formulate a law of current limitations.

We now bring to your attention a fun and at the same time completely true story of how you can act if, during a check, a lack of certain documents is found.

The sheer number of requirements creates the decisive process The periods of holding the documents are very complex. Information about certain aspects of working with documents can be provided by a variety of services – finance, legal, business, quality, etc. The DOW Service  alone is difficult to cope with (if possible). Therefore, it is important to establish collaborative and systematic work of key experts from different disciplines in the organization. Only then will it be realistic to gather the necessary information to quickly remove documents that have already become unnecessary and at the same time save what is actually needed.

1 The period for storing Calculus documents will be created from 1st January next year following the completion of their office work. For example, the Calculus retention period , which ended in 1999, begins on January 1, 2000.

The “as long as needed” mark indicates the storage period for the document, but should not be less than 1 year.

2 Conscientious taxpayers suffer from the “awareness” and distrust of tax authorities, who do not play “dark” games, but actually fall victim to “non-payment”. If not many of those who do not receive a salary of millions of rubles, then the majority of those who have been in business for many years do not pay in full!

As a result of the activities of companies, organizations and organizations, documents of various scientific and practical importance are generated. Some of them contain only the information needed to solve a specific problem. After using தகவth information for operational purposes, such documents lose their meaning. Their additional storage is practically impossible. Other documents retain e value for many years. But there are documents that contain valuable information for scientific and practical purposes. It should be remembered that such documents must be kept permanently.

In this connection, different periods of storage of documents are determined.

Document storage period is as follows:

• Temporary (up to 10 years)
• Temporary (over 10 years)

Completed cases of permanent and temporary (over 10 years) storage for two years are in the structural sections for reference work. They were then handed over to the archives of the organization.

The tenure of documents does not depend on the format in which they were created: paper or electronic. The feasibility and duration of using the documents is determined by the value of the information contained therein. Therefore, the purpose of the examination is to determine which documents can provide the required information to the state, community, science and individual citizens. It is worth noting that for selected documents for temporary storage, it is necessary to determine how long they may take. Therefore, determining the storage periods of personal documents is another important task of examining the value of documents.

Based on the above, we conclude that the tasks of reviewing the value of the documents are as follows:

• Selecting documents of political, economic, scientific and cultural significance and transferring them to the State Archives of the Russian Federation for permanent storage;
• The choice for temporary storage of documents that have no scientific and historical value but retain practical significance;
• Allocation for the destruction of documents that have no scientific value and have lost practical significance;
• Setting or changing the terms of storage of documents.

Value analysis is carried out on office work of companies and organizations, corporate archives and state archives.

In office work, value analysis is carried out:

• When compiling the nomenclature of cases;
• When creating cases;
• When preparing cases for transfer to the company archive after completion of their office work.