Tax legislation is rigid and does not include interpretation of it in the event of frequent doubts that exist about it. Nor does it show procedures for its correct application.
The present work in relation to the preceding theory, considers this and proposes solutions, which has been validated with acceptance since May 2008 in the Provincial Office of Tax administration of Sancti Spíritus; and in different state entities.
Development
Contribution to Social Security
A sample of approved and covered workforce is valid for the evaluated period, then comparing this with the relation of workers in evaluated Payroll and the extraction of checks must correspond to the Summary of these.
Special contribution of workers to Social Security.
Work papers can be made as follows:
| If Resolution 247/05 applies | If Resolution 105/08 applies |
| Earned Payroll..
.. .. Sub total 1 XX Paid Vacation Payroll .. .. Sub total 2 XX Subt 1 (+) Subt 2 = Tax base (*) 5% determined XX 5% paid XX difference XX |
Escala Group accrued salary.
IV and in Payroll I. II. III. ahead Total XX XX XX XX Paid vacations Scale Group. IV and in Payroll I. II. III. ahead Total XX XX XX XX Scale Group. IV and in Concept I. II. III. ahead S. accrual XX XX XX XX V. Paid XX XX XX XX Tax base $ 1 $ 2 $ 3 $ 4 Base multiplied by. Taxable 1%. 2.5% 3.5% 5% Total $ 1 XX XX $ 2 XX XX $ 3 XX XX $ 4 XX XX Total XX XX XX XX XXX Determined XXX Paid XXX Difference XXX |
Tax for Use of the Workforce
Example of the work paper for recalculation of the tax:
Month or fortnight
No. Accrued Payroll
..
.
.
TOTAL $ …………………………..XXX
(+) Accumulated 9.09% ……….. XXXX
(=) Taxable Base $ ………… XXXX
(x) 25% determined ………..XXXX
25% paid …………………….XXXX
difference $ ……………………… XXX
Income Tax
The review and analysis of the Situation Statement and the Income Statement are very important when the tax audit begins. Also the observation of the Single File with the result of previous controls (not directly related to tax obligations), and the current appreciation of the internal control environment offer necessary elements to determine the sample to review and trace in its most primary documents. With the simple observation of these States and Documents, characteristics of tax evasion or risk are sometimes detected. It is also valid to observe the approved Budget for the evaluated period, carefully analyzing each indicator.
State Investment Performance Contribution
Source: Profit for the period = Accounting profit (-) Mandatory Reserves (-) Income Tax (*) Percentage approved in Model according to Instruction No. 1, detailed later in this point.
INSTRUCTION No. 1 of January 13, 2006 issued by the Vice Minister of the MFP details the necessary model and its detail and instructions for Voluntary Reserves after payment of the Tax and Financing of the Financial Investment Plan
COMPANY:
BODY or ORGANISM:
MUNICIPALITY:
PROVINCE: _________________________________________ YEAR: __________
UM: Pesos
After the analysis in correspondence with the legislation, the work paper in determining the tax obligation could be as follows:
Accounting profit ……………………………………………………………… XXX
Less Accumulated Reserve for Contingencies (mandatory) …….XXX
Income Tax …………………… …………………………….XXX
= Return on State Investment.
Explanatory note: The Yield result obtained will be provided in the% indicated (total, partial or nothing) in correspondence with what is authorized through the model detailed above.
3.6 Tangible Fixed Assets
The obligation for accumulated Depreciation, Low and for Sale.
The model authorized (by the MFP) of "Creation and Result of the Use of Voluntary Reserves after Tax and Financing of the Financial Investment Plan" detailed in point 3.5, establishes the obligation or not (total or partial) of the payment of these tributes.
The work paper can be made as follows:
Number Depreciation Number Obligation Contribution
Comp. Month. Comp. Accounting. Determined Realized
Total Difference $ XXX - $ XXX $ XXX $ XXX $ XXX
3.7 Tax on land transport
Tax base: Gross weight of the vehicles (weight of the vehicle plus its load capacity). You pay for possession, even if they are not circulating.
In the audit, the List that the person in charge of transport in the entity has in its controls must be compared with what is recorded in Accounting.
Then it is necessary to verify that the total sum of the value of the AFT Transport equipment in their Registry (Primary and Submajor Registry), coincides with what is reflected in the Situation statement. Here it is necessary to separate the vehicles in: motor and animal traction dedicated to land transport that require permission to circulate; and in those that do not require it (who would not then pay tax, example: bicycles). The movement of equipment of this type during the year must also be taken into account. The physical verification of the teams selected for the sample will be opportune, as well as their correspondence with the data declared for each one.
Fee for Filing of Ads and Commercial Propaganda
Taxable person: Cuban or foreign natural and legal persons who place plaques, posters, posters, labels, billboards and other advertisements or similar elements for the purpose of: commercial propaganda, or publicity, or social identification.
ZONE |
AMOUNT |
| one |
$ 15.00 AND $ 7.50 PER FRACTION. |
| two |
$ 20.00 AND $ 10.00 PER FRACTION. |
| 3 |
$ 30.00 AND $ 15.00 PER FRACTION. |
| 4 |
$ 40.00 AND $ 20.00 PER FRACTION. |
| 5 |
$ 50.00 AND $ 25.00 PER FRACTION. |
Bonus of 5% for the advance payment of six months, and of 15% when the payment corresponds to one year (all the above made within the first fifteen calendar days of the quarter).
Media measuring less than one square meter will pay only 50% of the expected tax rate. This commonly happens in TCP contributors. For the fences $ 2.00 will be applied for each square meter and for each month or fraction of a month, regardless of the area where they are located. Those who identify the headquarters of the units will be taxed $ 8.00 for each square meter, for each month or fraction that corresponds. For each square meter that exceeds 30, $ 1.00 will be applied for each authorized month or fraction regardless of the area in which they are located.When it is located for the celebration of an event of any kind before or during its development, the amount will be $ 1.00 daily for each square meter or fraction.
Tax on Public Services
Gastronomy (020012)
Through the Product Control Model, Total Sales are analyzed and then the balance is checked with the analysis of the behavior of the Income accounts at the end of the year. The analysis will detail Periods, Accumulated Sales, and Month (a). Then you must check the sales not taxed by the tax (for products). For this, it is appropriate to observe the Product Control model (in retail activity) where they must detail the sales made by products.
To finally make the determination, the following will be taken into account:
| Period | Of the period | Not taxed |
| (to) |
(=) Taxable Base (x)% determined
Accommodation (020022)
The report of the Cashier - Carpenter is the same as the report of the Housekeeper and the daily room availability must correspond with the guest registry.
Housing discounts must be covered by at least one maintenance report.
Once these aspects have been verified, check the amounts with what is reflected in the Account Statement and the Daily Record of Operations.
Recreation (020032)
All cash income must be protected by a document, which must meet the following requirements:
- Being foliated: Whoever does the previous work, must not be the same person who sells the tickets.
Personal Income Tax
Artists, professionals and intellectuals (052012)
Resolution # 21/96. A progressive scale is applied for accumulated income each month.
In the work paper for the recalculation of the Tax we must consider (for each artist) the following:
- Artist name. Income accumulated since the beginning of the fiscal period. Payroll number for the month. Identification of the month. Gross income for the month. Authorized exemption. Adjusted gross income. 10% Deduction. Tax base. Tax Rate (progressive scale)
First $ 3000.00 ************* 5%
Excess from $ 3000.00 to $ 6000.00 ** 10
Excess from $ 6000.00 to $ 12000.00 ** 15
Etcetera.
- Subtotal. Deductions
Payments on account
Bonus
All of the above, to obtain what is determined in audit.
Conclusions
1- It was found that the available organization of current tax laws did not correspond to individual knowledge needs; Nor with the current demands to reduce costs in audits.
2- The proposal made allows adequate training of tax auditors, also understanding and contributing ideas based on greater efficiency in tax control. Establish a cooperative environment.
3- It is applied to the self-preparation process of other consultants, also enabling the analysis and improvement of tax procedures.
4- Uses Information Technology and Communications as an effective way for their exploitation and validity over time.
