Regular Mistakes and Negligence Made by Enterprises When Filing Business Income Tax-Part 2:

1.    If a certified public accountant does not certify and file the tax return before the deadline, it is treated as a normal tax return.

2.    The exempted income adhering to the regulations that encourages and rewards businesses should be entered in Line 57 of Profit-seeking Enterprise Income Tax Return. It is often mistakenly entered in Line 55 under “assessed deficit in the preceding 10 years for deduction this year.”

3.    In some of the CPA’s certified cases, the annual income is negative. The assessed deficit in the preceding 10 years for deduction this year is still included.

4.    If there are losses similar to the that assessed by the tax office under the provision of Article 7 Subparagraph 2 of Income Basic Tax Act when businesses calculate the basic income according to Subparagraph 1 of the same article, the losses are deducted yearly from the income that falls under the provision of the subparagraph in order of incurrence starting from and within 5 years of the subsequent year from the year when the loss is incurred. If there’s no income that falls under the provision of the subparagraph or there are still remaining amount after deduction, Subparagraph 2 of the same article can then apply and the deduction can be postponed to the subsequent year. The common mistake is not deducting the assessed net loss from securities and futures from the previous 5 years when calculating income from securities and futures.