It is reported that in daily agency accounting, current account items are an important component of corporate accounting. There are various risks in this item. A slight error will bring unnecessary losses to the enterprise. loss. In order to reduce the tax-related risks, let’s take a look at which links should be paid attention to when unexpected events arise.

Common tax-related risks in current accounts:

The risk of bad debt provisions for accounts receivable

According to regulations, unapproved reserve expenditures No deduction is allowed. Bad debt losses that meet the regulations and are approved by the tax authorities can be deducted before tax.

Risk of shareholder borrowings

According to regulations, if an individual investor borrows money from his investment enterprise during the tax year and neither returns it nor uses it for the production and operation of the enterprise after the end of the tax year , its unrepaid borrowings can be regarded as dividend distributions by the enterprise to individual investors, and personal income tax is levied according to the "interest, dividends, and bonus income" items.

Income from unrepayable payables that have not been carried forward

According to regulations, enterprises obtain income from property transfers, debt restructuring income, income from donations, income from unpayable accounts payable, etc., regardless of whether Whether it is in monetary form or non-monetary form, unless otherwise specified, it shall be included in the calculation and payment of corporate income tax in a lump sum in the year in which the income is recognized.

The risk of free borrowing between affiliated companies

According to regulations, units or individual industrial and commercial households provide services to other units or individuals for free, but they are used for public welfare or for the public. Exceptions are deemed to be sales of services.

Enterprises must establish appropriate internal control mechanisms for current accounts, conduct credit sales approval, separate powers and responsibilities, and check customer credit in a timely manner [KEY_14]. Those who do not perform repayment obligations must be maintained through legal and other means. own legal rights.

Enterprises should conduct regular reconciliations to identify problems and resolve them in a timely manner to ensure that accounting problems and risks do not accumulate.

Enterprises should clear their accounts in time at the end of the year and borrow again in the coming year to avoid long-term debt. If the other company is short of funds for a long time, it can consider debt-for-equity swaps to convert debt into equity.

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