Payment deadlines: A circular to clear up the grey areas

With less than three weeks to go before the deadline for the first quarterly tax return, things are still not clear in the minds of those concerned. In fact, as the crucial date of October 31 approaches, the subject is taking center stage. Unexpected details emerge as D-Day approaches. In order to gather feedback from professionals, the General Tax Directorate (Direction générale des impôts) held a meeting with them last week.

The meeting provided an opportunity to discuss a number of grey areas with practitioners concerning the application of the law’s provisions. Indeed, as time goes by, the companies concerned find themselves faced with a number of difficulties.

Among the points raised at the meeting was the question of the date of payment of an invoice by check or bill of exchange that has not been paid on time by the supplier. Does the fine apply in this case? Participants also addressed the subject of arbitration in the event of a dispute over an invoice. “Should arbitration be considered a court of law? Does the fine apply in this case?”. Participants also addressed the subject of arbitration in the event of a dispute over an invoice. “Should arbitration be regarded as a court of law? Is the fine suspended during the arbitration procedure?”, asked one professional. What is the scope of the visa that will be affixed by the statutory auditor to the statement of invoices, given that this is not a certification or an audit « but rather a verification of the concordance of the information with the invoices presented by the company. On this point, it should be noted that the Order of Chartered Accountants has decided that this will be a validation report, the standard for which will be published shortly, and not a simple stamp. Other issues raised by participants included the statute of limitations on trade receivables and fines, and the tax treatment of any indemnity claimed by the supplier. Should this indemnity be treated as income? The tax treatment of fines also came up for discussion. In principle, fines are not tax-deductible, in the same way as speeding fines, for example. Otherwise, the system would be meaningless.

The tax authorities are due to collate their comments in a practical circular to be published in the next few days, the aim being to enable the companies concerned to file their first returns in the proper manner.

Hassan EL ARIF