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How to deal with the contractor’s debt expected not to be returned in the tax accounting

authors: Alexander Minin, Inna Taptunova, Yuliia Kryvomaz

27 April, 2020 Exclusive

Coronavirus and the downturn in the economy are significantly changing the state of affairs: some customers and contractors, who have been reliable even yesterday, are going off-balance, and there are doubts whether their debt will be actually paid.

And what to do with such situation in the tax accounting? Should we pay tax, including the one on the imaginary “paper” profit, which is unlikely to be received in the “cashbox”, up to the official bankruptcy of the contractor in debt? Or are there any other options? ...

 

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