ECONOMY

Chance for big firms to settle unaudited years

The Finance Ministry is offering big companies in the C category the opportunity to close their accounting books for unaudited years between 1993 to 1998. An amendment tabled in Parliament will extend the facility currently enjoyed by small and medium-sized enterprises to big companies. The change is said to be in response to requests submitted by the companies themselves. In actual fact, the Finance Ministry is facing significant budgetary problems. An indication of this is that in the first quarter of the year, revenues were 50 percent short of the target, while spending was growing at a pace over four times faster than next year’s target. The extension of the facility will affect some 90,000 companies, which are expected to enrich the state coffers by millions. This is because hundreds of thousands of unaudited years are involved. The procedure involves comparing the companies’ total gross revenues over the six-year period. It will take into account sales costs, actual spending, depreciation of the two previous items, and presumptive net profits which arise from multiplying the gross net profit rate for each company with the total of the three above items. For those financial years during which violations have been committed, the difference between the undisclosed revenues and the total will be increased by 5-10 percent and will be added to the declared gross revenues. The Finance Ministry is expected to issue a circular setting out the terms and conditions of the facility.