FINANCIAL STATEMENTS FOR THE 9 MONTHS OF 2019: WHAT IF?

  Unfortunately, no one is safe from mistakes. And for them, as usual, have to pay. So let's find out how much it will cost to submit a "small" financial statement for 9 months of 2019? What if a small business mistakenly provides 9 months of reporting in the wrong form (in ms instead of m)?

Responsibility for non-reporting

  The small business has not submitted the financial statements of the small business for the 9 months of 2019. What is the risk of such a violation?
 The first thing you can expect in this case - an administrative fine for the company officials in accordance with Art. 186 COUPE. Recall: Part 1 of Art. 186 of the Code of Administrative Offenses establishes responsibility, in particular, for failure to provide the state statistics authorities with data for conducting state statistical surveys or submitting inaccurate data, not in full, not in the form provided for in the statistical documentation, or late. The fine for such violations is from 170 to 255 UAH.
 And if the official has already been held administratively liable for such a violation during the year, the fine will be from 255 to 425 UAH.
 It is the statistical authorities that have the right to hear cases of administrative offenses referred to in Art. 186 CUPA (Article 244 CUPA). Therefore, the probability of earning this fine in case of non-submission of financial statements is very high (see Goskomstat Letter of 01.11.2001 № 16-1-67).
And here is a fine for not submitting financial statements from Art. Officials of ordinary small enterprises should not be afraid of this. This is the "fate" of budget-related institutions and entities.
Things are worse if you are a small business - Income Tax Quarters and, in addition to statisticians, have taxpayers excluded. The tax return may not be accepted or equated by the “incomplete” submission of the declaration without a note in the form of Balance Sheet and the Financial Results Report in the forms No. 1 and No. 2. In such a case, the fine under § 120.1 of the CCU is already looming. The fine is 170 UAH. for any failure to submit or late submission of a declaration.
If during the year a fine has already been applied to the enterprise for such violation, then the amount of the repeat fine will be 1020 UAH. for any failure to submit or late submission.
We have dealt with the consequences of not reporting, and now we will look at common situations:
1. A small enterprise, instead of the financial statements of a small enterprise in Forms No. 1 and No. 2, filed a full financial statement in accordance with the forms under NPS (C) BU 1;
2. A small business mistakenly reported on Microforms # 1-ms and # 2-ms instead of # 1-m and 2-m.

 What is the threat and how to be in these cases? Instead of the financial statements of the small enterprise (Forms No. 1 and No. 2), the small enterprise submitted to the statistical authorities for the 9 months of 2019 the full report on the NPS (C) BU 1. In this case, there are no fatal errors, which means material responsibility does not threaten you. The whole point is that the current version of Section 2, Sec. II NP (C) BO 1 allows "babies" to determine independently the feasibility of compiling financial statements in the forms provided for in this standard. Simply put, if desired, any of the "toddlers" can submit, instead of forms No. 1-m (1-ms) and No. 2-m (2-ms), a full-fledged Balance Sheet and Statement of Financial Results.
 It is not possible to choose the desired reporting form of NP (C) BO 25 independently. Therefore, submitting not your own set of reports is a violation of the rules of compilation of financial statements, namely NP (C) BO 25. The fine from Art. 164 KUPAP immediately sweep away. First, it is used, in particular, for misrepresentation in the financial statements and for failure to submit them. In our case, financial reporting was provided, though not in that form. In this case, we can not talk about violations of accounting rules, because, in our opinion, this is a completely different category of violations. Secondly, it is used by the State Audit Office to control budget-related entities. So no ordinary enterprise should not be afraid of this fine.
But with a fine from Art. 186 is not all clear. Yes, indeed, it is imposed, in particular, for the provision of statistics to the authorities to conduct statistical observations in the form provided for reporting and statisticheckoy documentation. But from the definition of reporting and statistical documentation (part 5 of Article 8 of the Law on State Statistics) it is clear that financial reporting has nothing to do with it. These include reporting forms approved by the State Statistics Committee. Therefore, in our opinion, the application of this fine for reporting is not inappropriate in form.

 But, unfortunately, completely exclude the possibility of holding accountable under Art. 186 is not possible. After all, as we have already said, for failure to submit financial statements, the statistical authorities apply this fine. Therefore, it is possible that even in this case, the statistics will close their eyes to the warnings about the reporting and statistics and penalize the offender company in the amount of from 170 to 255 UAH.
 What is the responsibility for submitting to the tax authorities the results of 9 months of 2019 (instead of reporting on the "m" form submitted "MS" forms)? In this case, do I need to file a tax return? It all depends on how you report income taxes - quarterly or once a year.
 If you are a "rider" for the purposes of filing a income statement, and financial reporting is "for the company": when you report electronically to the statistics, there should be no claim against them on their part. The reason is simple - you simply do not owe tax filers to taxpayers. Therefore, the main thing is to understand the reporting forms before the submission of the annual declaration.
 It is another matter if you are a quarterly and have to file an interim financial statement with the taxpayer (along with a quarterly income tax return). In this case, purely theoretically, the tax could equate the filing of the declaration with "unformed" reporting with the non-filing of the declaration at all. And accordingly fine for this enterprise under item 120.1 PKU.
 And keep in mind that if you do not receive a notification of refusal to accept the declaration within 5 working days, it is considered accepted (PP 49.9.2).