What sanctions are provided for late payment of advance payments on property tax for organizations, and how can an organization reduce the amount of fines and penalties in the event of a tax deficiency identified through an independent review of calculations?
If an organization fails to pay an advance on property tax on time, it will not be subject to penalties under Article 122 of the Tax Code of the Russian Federation. Penalties are only applicable for failing to pay the tax at the end of the year, not for failing to pay an advance. However, the organization will be charged with penalties: if the delay is less than 30 days, the penalty will be 1/300 of the key rate of the Central Bank of the Russian Federation for each day; if the delay is more than 30 days, the penalty will be doubled, and from the 91st day, the penalty will be reduced to 1/300. The organization will not be penalized for the delay in paying the advance, but significant penalties may be incurred.
If the company discovers the error and pays the additional tax and penalties before the tax authorities notice it, the company may be eligible for a reduction in the penalties. To achieve this, it is important to:
- immediately pay the outstanding tax and penalties;
- submit a revised tax calculation;
- provide explanations for the error;
- cite mitigating circumstances, such as lack of intent, self-discovery, and correction of the error.
In some cases, the tax authorities may reduce the penalty or even waive it, especially if the company cooperates and does not have any other violations. The key is to pay the additional tax and make corrections promptly, as this will minimize the consequences.