Side effects of entrepreneurial status
Entrepreneurs are not former – there are only not identified
“On the direction of the review of judicial practice in disputes related to the qualification of the activities of individuals as entrepreneurial for tax purposes”, there were more frequent cases when ordinary citizens received requests in which they are invited to provide explanations on the use of property or the grounds for generating income to non-cash accounts with a proposal to pay taxes.It should be noted that to pay extra offer not only personal income tax, but also VAT.
The risk of substantiated tax claims and the threat of additional taxation arises in the following cases:
if there is more than 1 property in the property (in the documents that we had to see, it was usually about three or more property objects);
if the property has property intended exclusively for commercial purposes, such as: freight vehicles, forklifts, office, warehouse, etc .;
identify the sale of property previously used in business.
It should be noted that the mere ownership of property does not oblige to anything, but as soon as the tax authority determines that the property is being transferred to someone, there are risks associated with the possible recognition of such transactions as entrepreneurial activity committed by a person without the status of individual entrepreneur.
We draw the attention of readers: if you adhere to the approach that the property was transferred for free use, then there is a high probability of imputing the income to the receiving party by the settlement method.
Among other things, the means by which the property was acquired, how the expenses associated with its maintenance were paid, and other factors, will not go unnoticed. So, if a loan is obtained for purchase in the status of individual entrepreneur and payment of current expenses (utility bills, repairs, improvements, etc.) is made from the current account of the entrepreneur, when selling such an object with a high degree of probability, the proceeds will be regarded as entrepreneurial.
In support of entrepreneurial activities, tax authorities provide the following evidence:
testimonies of persons who paid for goods, work, services; receipts in receipt of funds, complaints of dissatisfied customers or dissatisfied contractors of your customers with whom you interacted;
extracts from the person’s bank accounts, acts of transfer of goods (performance of work, provision of services), if it follows from these documents that the funds received for the sale of goods (performance of work, provision of services) to these persons; posts in banking applications for a perfect payment (for example, for windows, for cleaning, for occupation, etc.). For translations without comment, sometimes they are called for a survey and, on the basis of indications, a payment can be classified as entrepreneurial;
advertisements, documents for the procurement of goods and materials, conclusion of lease agreements for premises.
These requests are sometimes unexpected and seem comical at first glance, but it is not recommended to ignore them: clause 6 of article 93.1 of the Tax Code of the Russian Federation is supplemented with a paragraph as follows: “. That is, an obligation has been established to provide not only documents, but also information, to which explanations can be attributed. And we help to prepare answers to them more and more often.
Thus, once having been in the role of an entrepreneur, you may be faced with the fact that you will have to pay taxes on the apartment or car you sold as an entrepreneur.
Popular fallacies in accepting an employer’s offer to become an IP
The leader of misconceptions is: “I can easily prove that I am a worker.” With a negligent formal approach to status, yes, it is possible, but if you:
submit reports yourself or you have a contract with an accountant / accounting firm;
placed customer search ads;
carry out the procurement of materials and equipment related to business activities –
then to prove the fictitious nature of registration in the IP even if there is only one client will be extremely problematic. This means that the majority of employee guarantees can be forgotten.
Sick – no, not heard
In case of illness, an entrepreneur can only expect to receive benefits if he is registered with the FSS. It is necessary to register the entrepreneur as an individual entrepreneur, and not the entrepreneur as an employer. Currently, this registration is voluntary for the entrepreneur, so most do not do this registration – partly because of ignorance, partly based on the ratio of labor costs for processing and the amount of the allowance paid based on the minimum wage. Our experience shows that this registration is no more than 2 percent of IPs that we had to deal with.