Closing in. Accountability and tax reporting eliminate differences

The Federal Tax Service drew up the preliminary results of the work of discovery of differences between the accountability and tax reporting and called upon the public to join in the discussion.

At the same time, no complete merger of the two accounting systems is in question. Ekaterina Boldinova, Senior Associate of the Law Firm "YUST", explains: “Accountability and tax reporting serve different purposes, so the differences between them cannot be avoided. For example, all movements of funds are taken into account when acknowledging income and expenses for accountability purposes. While only such fund movements are important for tax reporting as have significance for taxation purposes. This difference is due to the fact that accountability must show the real picture of the venture’s “life”, while tax reporting only demonstrates the state of its tax base. Those reports cannot be fully combined”.