First, we want to clarify the difference between unreliability and deficiency in the context of maintaining accounting records and indicate what they mean. A ledger is unreliable when it does not reflect the true state of affairs, i.e. the data contained in it does not correspond to facts that have taken place, or it includes events that never occurred. On the other hand, a ledger is defective when it is not kept in accordance with the law, which means formal errors in its keeping in violation of the applicable statutory provisions and regulations. Bookkeeping that is factually accurate but does not comply with formal requirements may be charged as defective bookkeeping.
Unreliable bookkeeping is treated as a tax crime, while defective bookkeeping is considered a tax offence. According to the provisions of the law (Article 61 § 3 of the Polish Fiscal Penal Code), fiscal offences are time-barred one year after they were committed. The fine for a fiscal offence can range from 1/10 to 20 times the minimum wage. On the other hand, in the case of unreliable bookkeeping (Article 61 § 1 of the Polish Fiscal Penal Code), the statute of limitations expires 5 years after the offence was committed. Unreliable bookkeeping is punishable with a fine of up to 240 daily rates, each daily rate of which may not be less than 1/30th of the minimum wage and no more than 400 times that wage.
The Accounting Act provides for penalties of imprisonment, fines or both penalties jointly for irregularities in bookkeeping (Article 77 of the Accounting Act). The head of the entity and the person to whom specific duties have been assigned in writing are responsible for the performance of accounting duties. In most contracts with an accountancy firm, a provision is included to keep accounts in a reliable manner. If such a provision was in the contract with the former accounting office, the head of the entity is jointly liable. However, the sanctions in this respect are not set out only in the Accounting Act. As mentioned earlier, there are penalties under the Polish Fiscal Penal Code for unreliable bookkeeping (not in line with the actual state of affairs) or defective bookkeeping (not in line with the law). Those sanctions apply to the accounting office, regardless of whether its actions have caused harm to the entity. The occurrence of a property loss to an entity is the main reason for holding an accounting office liable under the Polish Penal Code. If this situation occurs, the former office will have to cover the costs of correcting the accounting errors.
How can we help?
1. We will reproduce the accounts.
The reproduction of the accounts involves the re-booking of documents from a period when the accounts were kept unreliably or not at all.
2. We will correct the books of account.
The correction of accounting errors is a last resort for entrepreneurs whose accounts have been kept unreliably or defectively. In order to assess the state of the company’s accounts, we carry out a preliminary audit which consists of an independent review of the compliance of the company’s accounts with tax regulations and the Accounting Act. The audit is based on the base of the accounting system, if the entrepreneur has one. In the absence of a base, we analyse existing source documentation.
If the audit shows a small number of errors that can be remedied by a few corrections, we speak of partial reconstruction. On the other hand, when the shows that the company’s accounts have been kept in a very unreliable manner or not at all, a full reconstruction of the accounts is required.
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