Payment period: The Big Bang in October
Like many other pieces of legislation, the law on payment terms presents some gray areas which have been identified from the outset by both accounting professionals and practitioners called upon to put into practice the provisions of the law which came into force on July 1st for companies with a turnover of more than 50 million dirhams (USD 5 million) exclusive of taxes. Moreover, the first tax return for the months of July, August, and September must be made no later than next October 31.
■ Who must submit their first tax return before the end of October?
For merchants with a turnover of more than 50 million dirhams excluding VAT, the law has already come into force. Consequently, they are called upon to make their first tax return online containing a certain amount of information such as the total amount excluding VAT of unpaid invoices and of those paid totally or partially after the deadline. The electronic tax return, which must be accompanied by a detailed statement approved by an auditor, must also include the total amount of the fines. Fines are provided for in the event of breach of these obligations.
■ Detailed statement certified, validated, or signed off?
The idea of certifying detailed statements by accounting professionals, provided for in the first version of draft law no. 69-21, had sparked controversy between the two components of the profession. The certification of accounts is a monopoly of chartered accountants. The legislator has gone halfway by adopting at the second Chamber, the House of Councillors, the term «signed off» which remains neutral, but whose principle remains the same. The question that remains unanswered concerns the format of this sign-off. “ The Association of Chartered Accountants is working on the standardization of this sign-off. This will certainly be a model certificate or report «, explains Ahmed Chahbi, vice-president of the Association of Chartered Accountants. The final scenario that is emerging therefore excludes the simple fact of affixing a stamp to the detailed statement that must accompany the quarterly tax return. The Association of Chartered Accountants is in the process of considering the definition of all the steps that will have to be carried out by the profession with regard to the detailed statements accompanying the quarterly tax returns.
■ Counting of the payment deadline
Since the tightening of payment deadlines has been established by law, some members of the business community are overflowing with imagination to circumvent the event giving rise to a debt, One of the schemes contemplated consists of receiving the goods and paying within 120 days, but giving the supplier a negotiable instrument dated an additional month. The other acrobatic trick would be to ask your supplier for a post-dated invoice, the goal always being to save time on the fatal payment deadline. In all cases, an unpaid bill could be noted by the tax authorities at the time of the quarterly tax return.
Hassan EL ARIF
