In principle, the change from IR to IS entails tax consequences. We discuss this subject in this article: the change of tax system. In addition, this change in taxation modifies the tax rules for entrepreneurs and partners: the latter are now liable to IR on the remuneration they receive and on their share of dividends.
In these two cases, be aware that the auditor will reserve the right to come once at the head office of your company, if you have professional premises.
Common sense advice to observe
Prepare as well as possible for the inspector’s first visit
With the help of the Chartered Accountant, provide the auditor with a maximum of accounting and supporting documents, including of course the bank statements of the professional account and all the invoices.
This attitude may help to show that you don’t feel like “playing cat and mouse” since it is too late to procrastinate anyway if any negligence has been committed in the previous two or three exercises.
Know how to manage the rest of the interventions
You have the option of negotiating the schedule for subsequent visits, by mutual agreement with the inspector.
Cooperate as best as possible to prevent interventions from dragging on for too long. Because if the auditor will not come every day, the control is likely to last several months depending on the amount of turnover achieved by your company for the years audited.
At the end of an accounting year, a company subject to corporation tax may find itself in excess of IS payment and have to request a tax refund. This may be the case when the IS installment payments exceed the tax ultimately due. Here’s how to request a refund of excess corporate tax. You can make use of the taxfyle’s tax calculator for making calculations of the yearlong earnings also.
In which cases can I request a reimbursement of IS?
A business may be required to claim a corporate tax refund in the following two cases:
The total amount of corporate tax installments paid during the financial year exceeds the amount of corporate tax due for the same financial year,
The company has refundable tax debts and an insufficient IS due to be able to charge them.
The amount of installments is greater than the amount due when the company achieves a lower tax result than the previous year, or even a tax deficit.
Reimbursement is normally made by bank transfer within 30 days of filing the corporate tax balance statement and the declaration of results No. 2065, or the filing of the last of these two documents when it is not simultaneous.