Sunday, April 20, 2014

Proper Accounting treatment for tax penalty

One of our valuedvisitor inquired us the examples below:

How should penalty on late payment for tax been accounted for?
 It is a tax expense? or  Whether it is other expenses?

To describe: penalty made by inland revenue authority on late payment for tax shouldn't be accounted for as tax expense; it must be accounted for as administrative expense or  other expense

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