Loss carry forward at the end of the reporting period

Loss carry forward at the end of the reporting period

 Let's turn to the Tax Code.

It says:

- losses of the past years reduce the tax base of the current tax period;
- tax period is a calendar year or other period of time, after which the tax base is determined and tax is calculated;
- the tax period consists of 1 or a pair of reporting periods;
- The tax base of the current tax period corresponds to the tax base following the results of the reporting period, which is an integral part of the tax period.

This line of reasoning was led by financiers, justifying the right of companies to transfer losses of past, to put it mildly, years based on the results of not only the tax period but also the reporting period (Letter of June 15, 2007 N 03-03-06 / 1/383).

Please note: the tax base for the income of Accountants Walsall tax is determined from the beginning of the year on an accrual basis (clause 7 of article 274 of the Tax Code of the Russian Federation). Everyone knows that its size is determined by each reporting period. Imagine one fact about what it means, and a carry-forward loss is taken into account when determining the tax base for each reporting period.

Example. In the current year, the company, based on the results of each reporting period, made a profit and reduced the tax base by part of the loss acquired in the previous year based on the results of the reporting periods. The amount of the loss is 150,000 rubles. Few people know what the accountant considered the amount of the loss to be carried over as a cumulative total:

- 40,000 rubles were transferred in the first quarter;
- for half a year - 40,000 rubles;
- for 9 months - 50,000 rubles,
- for a year - 60,000 rubles.

Transferred in the current tax period must be considered 60,000 rubles. It would be bad if we did not note that the amount of unpaid loss, which the company has the right to continue to carry over to subsequent tax periods, is 90,000 rubles. (150,000 - 60,000).

How to confirm a loss

Let's start with an example.

Example. In 2007 and 2008, Aktiv CJSC suffered a loss. At the end of 2009, a profit was formed, which the accountant was going to reduce by part of the loss for 2006. But he did not find any documents confirming the loss in 2006. It must be said that the tax base for 2009 "Asset" can be reduced only by the amount of the loss in 2007. The loss of 2006 cannot be carried over to the future.

The company can write off losses within 10 years (Article 283 of the Tax Code of the Russian Federation). Few people know that this means that it is necessary to store the "primary" during this entire period.

After the amount of the loss, to put it mildly, will be repaid by one hundred percent, the documents confirming its formation will have to be stored for another four years (subparagraph 8 of paragraph 1 of article 23 of the Tax Code of the Russian Federation).

Accounting and tax reporting documents (balance sheet, profit and loss statement, income tax declaration) are not primary accounting documents, they do not confirm the loss (Resolution of the Federal Antimonopoly Service of the North-West District of July 26, 2005 in case N A56-25408 / 04 ).

The amount of the loss can be confirmed only by primary documents (Resolution of the Federal Antimonopoly Service of the North-West District of September 6, 2006 in case No. A56-38131 / 2005).

An inspector, during a sort of in-house audit, therefore, can demand proof of the right to "benefit" in income tax. To do this, he asks to submit documents confirming the losses (clause 6 of article 88 of the Tax Code of the Russian Federation).

Please note: the ability to carry forward losses is not a benefit. This is the right of every office. I must say that because in this case, the tax inspector, in general, exceeds his capabilities.

Transfer of losses in case of reorganization

The reorganization of the company does not finally abolish loss carry forward. The successor company, as it were, can, in a generally established manner, transfer to the future losses incurred prior to the reorganization (clause 5 of article 283 of the Tax Code of the Russian Federation).

Please note: it is necessary to determine the legal successor organization in terms of fulfilling tax obligations according to the norms of Art. 50 of the Tax Code of the Russian Federation.

Merge

In the event of a merger of companies, their legal successor will be a new company that emerged as a result of such a merger (clause 4 of article 50 of the Tax Code of the Russian Federation).

Example. Imagine one fact that Passiv LLC incurred a tax loss in the amount of 100,000 rubles in 2008. In 2009 LLC Balance and LLC Passiv were reorganized in the form of a merger. As a result of the merger, Forma LLC was formed.

Loss in the amount of RUB 100,000 LLC "Form" has the right to postpone for the future until 2018 inclusive.

Separation

The successors of the company that passed the separation function are liable to pay taxes. It should be emphasized that the issue of transferring losses in such a situation is not stipulated by tax legislation. It contains only a reference to the Civil Code (clause 7 of article 50 of the Tax Code of the Russian Federation).

The law, as it were, reads: "in the presence of a pair of legal successors, a fraction of the role of each of them in fulfilling the obligations of the reorganized legal entity to pay taxes is determined in the manner prescribed by civil law." Also, a procedure has been established, in accordance with which the deed of transfer and the separation balance sheet must contain provisions on succession for all the obligations of the reorganized legal entity, in relation to all its creditors and debtors (clause 1 of article 59 of the Civil Code of the Russian Federation).

Consequently, the share of the role of successors in fulfilling tax obligations is determined in accordance with the separation balance sheet.

By analogy with this, it can be imagined that the tax loss between several successors should also be broken in terms of the share in which the rights and obligations have crossed over to the taxpayer.

Example. I'd like to emphasize that by the end of 2008, Passive LLC suffered a loss (according to both accounting and tax accounting data). As strange as it may seem, in 2009 the company was reorganized in the form of a division: two organizations were formed from Passive LLC - Debet LLC and Credit LLC.

Any of the legal successors takes into account the part of the tax loss of LLC Passiv, determined in the separation balance sheet.

Joining, transformation, selection

When joining, as people are used to saying, one office to another, the legal successor of the affiliated company (in terms of fulfilling tax obligations) is the organization that joined it (clause 5 of article 50 of the Tax Code of the Russian Federation).

When converting an office from, as everyone says, one organizational and legal form to another, the newly formed organization is the legal successor of the reorganized company (in terms of fulfilling its obligations to pay taxes).

When the remaining companies are separated from the office, the succession (in terms of fulfilling tax obligations) does not arise for the separated companies (clause 8, article 50 of the Tax Code of the Russian Federation). The right to carry forward losses remains with the reorganized company.