If the company shows a loss in the tax return for several reporting periods, the tax office may require to justify the loss reporting. In this case, you need to carefully consider the information indicated and take some measures to solve the problem.
Instructions
Step 1
Study tax legislation that provides various measures for unprofitable businesses. So, in paragraph 3 of article 88 of the Tax Code of the Russian Federation it is said that an explanation must be written in the event of an error in the tax return, the provision of conflicting documents or inconsistencies in the information provided by the taxpayer. The laws do not say anything about unprofitable reporting, therefore the inspectors refer to the last paragraph of the law and demand to write an explanation, referring to the incorrect calculation of income and expenses.
Step 2
Remember that if you submit unprofitable reports over several tax periods, the tax inspectorate may decide to liquidate the company and file a corresponding claim in court. This right is specified in clause 11 of article 7 of Federal Law No. 943-1 of March 21, 1991.
Step 3
Write a free-form explanation addressed to the head of the territorial tax authority. The explanatory one should contain the reasons that justify the formation of a loss based on the results of the financial and economic activities of the enterprise for the past reporting period. Consider what justifications might be considered valid for tax officials.
Step 4
Please indicate that the funds were spent on the development of the company. This reason is ideal for new enterprises, since at the beginning of their activities they are faced with great competition, the need for development and search for counterparties.
Step 5
Refer to non-standard operations. This reason can justify unforeseen expenses in a stable operating enterprise. So you can indicate that the company mastered new production or reconstructed fixed assets, which led to an increase in costs and a drop in sales.
Step 6
Also, the loss can be justified by the loss of an important counterparty, which accounted for most of the profit. The reason for the loss can be a decrease in income. For example, inform that the company has decided to temporarily reduce the price of the product in order to increase its competitiveness.
