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New Requirement For Computerised Accounting
Taxand France explores the impact this new system will have on taxpayers.
As part of this new rule, the legislator strengthens the powers of the tax administration and makes it mandatory for all companies with computerised accounting to represent their records in dematerialised form for tax audits as of 1 January 2014.
Contrary to the implementation of a single audit procedure, as per other European States, France combines two procedures: the first, close to the German method of tax audit, involves the mandatory representation of accounting documents via delivery of a copy of the accounting entry files. The second involves the processing of computerised data; a procedure called "tax audit of computerised accounting".
The failure to comply with this new requirement could be punished severely, by a minimum fine of EUR 1,500 per fiscal year or calendar year audited. This could be increased, in the event of a serious violation, to 5% of sales or the gross revenue declared or adjusted.
From a practical point of view, the period of one year will allow corporates to prepare for this update and enable them to comply with the technical standards their data must meet when applying computerised accounting. It may be deemed necessary for companies to define a tax and technical strategy to ensure the consistency of the IT data disclosed and the accounting and tax treatment of this data.