Role and functions of tax accounting

The tax accounting is a system of generalizing information in order to determine the tax base for tax. It is based on data from primary documents, assembled in accordance with the procedure provided for by the Tax Code of the Republic of Uzbekistan.

At the same time, in a broader sense, tax accounting is a system for determining the taxable base for all taxes, fees, insurance premiums provided for by the tax legislation of the Republic of Uzbekistan. In the accounting policy of the organizations, the issues of accounting for taxes and fees are not limited to income tax alone. Tax accounting policy is a supplement to the legal framework for tax accounting of a particular taxpayer, establishing specific methods and techniques for maintaining tax accounting.

Tax accounting is designed to enable the taxpayer to calculate his tax liabilities correctly. After all, the procedure for calculating and paying taxes, fees and insurance premiums is not determined by the rules of accounting, but tax accounting.

Thus, tax accounting serves to determine the object of taxation, calculate the tax base, to manage the procedure for calculating taxes provided for by tax legislation, and also comply with the procedure and deadlines for paying tax. The taxpayer will be able to fulfill his main duty - to pay legally established taxes.

Tax accounting functions

In the tax accounting system, as a rule, there are 3 main functions:

• •    fiscal;

• •    informational;

• •    control

The essence of the fiscal function is that due to the correct formulation and maintenance of tax accounting, the main purpose of taxes is fulfilled -replenishment of the revenue side of the budget to ensure the tasks assigned to the state.

The informational function of tax accounting consists in providing information bot: the taxpayer himself and the tax authorities on the truthfulness and completeness of the calculation of taxes, fees and insurance premiums, as well as on the financial situation of the taxpayer.

By drawing up and submitting tax reports, it is possible to control tax accounting data and to reconcile and compare indicators with each other. This is the control function of tax accounting.

In practice, tax accounting is built either on the basis of accounting (according to a single chart of accounts, forming accounting and tax accounting indicators in the context of an accounting) or independently of accounting (in parallel with accounting without connection with it).

As a rule, the first method is the most accurate and less time consuming. It is a method of building a tax accounting system that is implemented, for example, in the 1C: ERP software product.

Table-1

Differences between tax accounting and accounting

As we can see, accounting and tax accounting are two completely different types of accounting. However, they are very similar to each other. In this regard, the following options for organizing and maintaining tax accounting at the enterprise should be highlighted:

• 1.    Separate accounting of accounting and tax accounting. It is appropriate for large companies, where a specially organized Tax accounting department functions at the enterprise.

• 2.    Tax accounting is conducted on the basis of the accounting. In this case, the accountant uses the accounting registers, supplementing them with the necessary missing data. If the company provides principles for conducting certain operations that are completely different from accounting, then special forms of tax registers have been developed for them.

• 3.    Tax accounting is so similar to accounting that only deviations arising in cases of accounting differences are taken into account separately. In this case, only accounting adjustments in accordance with the accepted tax accounting methods are subject to reflection.

• 4.    Small and medium companies can also open special accounts for the accounting of tax accounting operations to the chart of accounts.

Thus, we can conclude that the emergence and functioning of tax accounting is necessary only if the accounting system, which is a continuous, interconnected reflection of the economic activity of the enterprise, ceases to ensure the implementation of the fiscal interests of the state.