The tax return, which is prepared by the company’s accountant at the end of the financial year, must be submitted to the tax authorities. In addition to the tax revenue that it will produce for the legal entity, its study will allow the entity to confirm that the structure is in excellent condition and that it is in accordance with applicable laws. Third parties are also interested in what is being said. The tax resolution software can be of great help there.
What is The Tax Package?
The tax package is a collection of tax papers generated by the business or its accountant, and it enables you to examine the financial statements of a structure and perform an examination of balance sheet and income statement items, among other things.
Also included in this package is a determination of the amount of tax for which the business is due, which will be based on the company’s performance and the tax system in which it operates. It will have taken the necessary precautions to ensure that it was valid prior to use.
This package must be sent every year, within the specified time frame, as a matter of legal obligation. Auto-entrepreneurs are exempt from this requirement since they do not have any accounting responsibilities and thus do not need to set up a business.
Use of Such Package
This kind of document is most frequently created using specialized software and then submitted with the tax authorities online; the filing deadline varies depending on when the accounting year comes to an end:
It is necessary to send the package to the tax authorities within three months (+15 days) after completion of the financial year if the financial year ends on a different date (this only applies to corporations).
In addition to the company’s regulatory responsibilities before the government, the package is of interest to the company’s financial partners. When it comes to determining the financial health of a business, banks and, at some point, rating agencies look to it for guidance.
In addition, potential investors use it as a diagnostic tool to determine whether or not to support a project, such as an equity investment, before making a decision. Finally, it is possible that it will be interested in it for statistical reasons.
Failure to file a tax return on time will result in the loss of the ability to deduct depreciation from income. It will particularly subject the business to a set penalty as a consequence of the outcome, which will be substantially dissuasive. That is, 0.4 percent of the total amount of tax due is collected each month. Finally, depending on the circumstances, a tax increase that can range anywhere from 10 to 80 percent is implemented. Furthermore, there is no point in running because you must “declare on time.”