Federal Public Service FINANCE TAXES AND TAX COLLECTION Administration of Recovery 1 Accountancy...

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FederalPublic ServiceFINANCE

TAXES AND TAX COLLECTION

Administration of Recovery

Accountancy aspects of the EURO changeover at the Ministry of Finance

by Francis Adyns

Twinning project LITUANIA

Vilnius, June 12th and 13th , 2007

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Introduction

Conversion of all accounts of the fiscal administrations at the financial operator into Euro on 1.1.2002Management of all of the intern accountancy operations and accountancy lists in Euro, also of those related to periods before 1.1.2002

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TABLE OF CONTENTS

A. Account transactions – Making up statistics1. In general2. Specific instructions for the collectors

B. Payments by the tax payersC. Lay-out of the orders to payD. Warning noticesE. Payment facilitiesF. Intrests

1. In general2. Special cases

21/03/2003

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Table of contents

G. Correspondence1. Ordinary correspondence with a tax

payer2. Correspondence concerning recovery3. internal correspondence

H. Legal disputes and penalty clauses1. Correspondence with lawyers, curators, liquidators and others2. Already by the administration deposed

conclusions in lawsuits3. Mentioning of amounts of taxes or withholdings, penalisations, tax increases and interests in

conclusions4. Penalisations enforced by the courts

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A. Account transactions – Making up statistics

1. In general

Data in automatic applications transformed automatically in EURAutomatic conversion from BEF into EUR : on 31.12.2001Consequences for the tax collector :

Accouncy transactions and operations since 1.1.2002 exclusively in EURReports, lists and statistics since the budget year 2002 in EUR

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Way of conversion : mathematically or by composing the amounts

Mathematically (applied on “isolated” amounts) :

Amounts that are not in relation of equality with other to be converted numbersAmounts of which the accountable interpretation has no specific requirements of equality

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By composing the amounts on two levelsOn the level of individual amount (top down) :- conversion of rights and payments- from the final result on towards the composing particles- differences : added to the biggest composing particles

On the level of the accountancy (bottom up) :- conversion of fixed rights and incomes- by recomposing of the amounts- differences of rounding: accepted in the accountancy

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General operating modus to detect and to justify differences of rounding in the balancing of the year:

Balancing of the year firstly made in BEFAccountancy converted in EURNew balancing of the year in EURConfrontation of the totals of the first and second balancing to locate and regulate the differences of rounding

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2. Specific instructions for the collectors

To give a definitive destination to the amounts in the “wait registers” in order to avoid :

Transcription in the new manuel register of transfers of 2002Problems with the conversion into EUR

The outgoings out of the automatic register of transfers will be stopped during December 2001

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Treatment of the outgoings by the CSS in Brussels during te last trimester of 2001 :

Data Transferson account

AssignationsCircular cheques

October 2001Settlement in December

BEF BEF EUR

November 2001Settlement in January

BEF EUR EUR

December 2001Settlement in February

EUR EUR EUR

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Procedure for the statistics for these outgoings :

Data of October 2001 : introduced in BEF in DecemberData of November 2001 : - introduced in BEF in January- converted in EUR- introduced in statistics of the new budgetary yearData of December 2001 : completely treated in EUR

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Cheques :Issued end 2001 and cashed beginning 2002 : differences of rounding can be avoided by inviting the tax payer to write out the cheque in EURIssued from 1.1.2002 : only in EUR

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Attributions to the subordinate authorities :Data of the unrecovered rights at 31.12.2001 : in BEF and in EURAttributions to the municipalities :- double lay out (yearly and monthly report) provided in

January 2002 : first in BEF, after conversion in EUR- from February 2002 : in EURManual rights and incomings :- base documents and reports in January 2002 : in BEF- conversion in EUR during treatment- from February 2002 : in EUR

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B. Payments by the tax payers

From 1.1.2002 : Massive release of coins and banknotes in EUREUR = legal tender

Until 28.2.2002 :Coins and banknotes in BEF will be progressively taken out of circulationBEF = legal tender

During transition period (1.1.2002 – 28.2.2002) :

Payments possible in BEF as wel as in EUR

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Payments by cheque :Written in BEF : not accepted by the collector officesException : written in BEF before 1.1.2002 and offered within legal terms : treated by the bank without additional costs

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Following specifications are to be considered :

Without any mention of currency :Cheque written before 31.12.2001 : supposed to be in BEFCheque written after 31.12.2001 : supposed to be in EUR

Abolition of the Eurocheque-warrant from 1.1.2002 on

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Issue of transfer formularies in EUR :

For transactions with payment date after 31.12.2002By fiscal authorities from 1.7.2001 or from 1.10.2001 (VAT)

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C. Lay-out of the orders to pay

From 1.1.2002 :Made up exclusively in EURWith an attached EUR-transfer formularyAmount exclusively in EUR

Exception :Made up in BEF in case of return of the order to payResend with an attached EUR-transfer formulary instead of the original formulary in BEFWith a covering letter to explain the converting of the amount in EUR

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D. Warning notices

From 1.10.2001 :With an EUR-transfer formulary

Until 31.12.2001 : In BEFEnd result in EUR

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E. Payment facilities

Consented from 1.10.2001 :Documents of payment with EUR-transfer formulariesTerms of payment in 2001 : calculated in BEFTerms of payment in 2002 : calculated in EUR

Consented before 1.10.2001 :Stopped after being converted into EUREstablisment of a new plan of payment for the remaining amount in EUR

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F. Interests

1. In general

Calculation period entirely in 2002 :Basis of the calculation rouded off to lower 10Interests are calculated month by monthAmount of the interests is rounded off to the eurocent and multiplied with the number of months

No interests due :Amount interest < 5 EUR a monthBasis of the calculation < 860 EUR (1.720 EUR for ½ month of interest concerning the withholding tax on earned income)

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F. Interests

2. Special case

Calculation period is not or is not entirely in 2002 and is made in EUR :

First conversion of the basis of calculation in BEFRounding off to the lower 1000 (BEF)Converting the result in EUR (rounded off to eurocent)Calculating the interest on the result in EUR (no interest when amount interest < 4,96 EUR a month)

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G. Correspondence

1. Ordinary correspondence with a tax payer

From 1.1.2002 :Authorities and administrations only accept and produce information in EURRecovery services issue their correspondence only in EUR

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G. Correspondence

2. Correspondence concerning recovery

Automatic and non-automatic formularies to inform the tax payer to pay in EUR will be adapted in timeDocuments related to transactions before 1.1.2002 : in BEFDistress-warrants sent to bailiffs : in EUR

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G. Correspondence

3. Internal correspondence

Information fluxes of data : in EURInformation fluxes concerning facts and transactions before 1.1.2002

In BEFFinal amount : in EUR

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H. Legal disputes and penalty clauses

1. Correspondence with lawyers, curators, liquidators and others

From 1.1.2002 :All amounts mentioned in EUR

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2. Already by the administration deposed conclusions in lawsuits

Amounts mentionned in BEF, may remainAfter 31.12.2001 :

Complementary or synthecic decisions : in EURCorrespondence related with courts : in EUR

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3. Mentioning of amounts of taxes or withholdings, penalisations, tax increases and interests in conclusions

After 31.12.2001 : exclusively in EUR

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4. Penalisations enforced by the courts

Generally : Amount in law devided by 40(official conversion currency : 40,3399 BEF = 1,00 EUR)

Federal Public Service FINANCE TAXES AND TAX COLLECTION Administration of Recovery 1 Accountancy...

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