How are fines imposed by Rospotrebnadzor authorities reflected in accounting?

In what cases may administrative sanctions be imposed on a company?

The Administrative Code contains dozens of articles, according to which a legal entity may be subject to penalties.

We list a number of the most common cases:

• In case of violation of traffic rules by drivers driving vehicles owned by the organization.
• In case of violations of labor legislation identified by Rostrud specialists.
• In case of violations of legislation on the protection of consumer rights by trade organizations.
• In case of violations of certain requirements of tax legislation that are not directly related to the payment of taxes (for example, deadlines for submitting declarations).

Fine for violating traffic rules: accounting entries

The fine imposed by the traffic police generates the entries shown in the table in the case when a legal entity appears as a violator in the document for payment of sanctions. In the case where penalties are issued to the driver, the driver himself must pay it.

What to do if a traffic police fine is issued to an organization for speeding, which is the direct fault of the driver?

In this case, the organization has the right to withhold the amount paid for speeding by the driver from his salary.

Accrual and payment will be reflected in accounting as shown in the table, and compensation for damage to the organization by the driver is reflected in the following entries:

• Dt 70 Kt 73 - the driver’s debt for damage caused is accrued (when the amount is withheld from the salary);
• Dt 50 Kt 73 - the driver has deposited the amount of the penalty for speeding paid by the organization into the cash register;
• D t73 Kt 91.1 - income from damages compensated by the driver is taken into account (clause 3 of Article 250 of the Tax Code of the Russian Federation).

It must be remembered that penalties paid by an organization do not reduce the taxable base for income tax, while sanctions received (under business contracts) are income on which income tax is paid.

Current as of: February 20, 2021

A fine is a type of monetary penalty imposed on an organization in connection with a violation of contractual obligations or legal requirements. We will tell you how the accrual of a fine is reflected in accounting.

Administrative fine - accounting entries

The general principles for reflecting expenses in accounting are given in PBU 10/99 “Expenses of an organization.”

Because fines cannot be attributed to expenses directly related to the main activities of the company, they can be classified as other expenses in accordance with clause PBU 10/99. The list given in this paragraph is open, therefore, on its basis, penalties can also be recognized as expenses.

In accordance with the Chart of Accounts, approved by order of the Ministry of Finance of the Russian Federation dated October 31, 2000 No. 94n, account 91 is used to account for other expenses.

Thus, if the company is assessed fines, the accounting entries will be associated with this account. Regardless of the type of fine - traffic violation or labor inspection fine - the accounting entries will be the same:

DT 91.2 – CT 76 – charging a fine;

DT 76 – CT 51 – the fine is transferred to the budget.

If the company challenged the fines in court, but lost the case, the bailiffs can carry out the collection. In this case, the postings on the writ of execution will be similar to those discussed above.

Unlike accounting, tax accounting provisions contain a direct prohibition on including penalties transferred to the budget into expenses (clause 2 of Article 270 of the Tax Code of the Russian Federation).

In this case, there is a constant difference between the two types of accounting in the amount of accrued penalties.

Therefore, if an organization has accrued a fine, the entries must be supplemented with transactions to reflect tax differences in accordance with PBU 18/02. In this case, a permanent tax liability (PNO) arises. To determine its value, you need to multiply the permanent difference by the current income tax rate.

DT 99 – KT 68.4 – reflected PNO

Thus, if an organization has been assessed a fine, the entries relate not only to settlements with the budget, but also to the resulting tax differences.

Concept and types of penalties

This is a type of financial responsibility for committed illegitimate actions, expressed in a specific monetary amount.
All fines are divided into two categories:

1. Civil law - established for violation by the parties of obligations under the contract (clause 7 of PBU 9/99).
2. An administrative fine is a category of sanctions imposed by various government agencies and institutions. Administrative penalties include payments to the Federal Tax Service, State Traffic Safety Inspectorate, Rospotrebnadzor, etc.

Accounting for sanctions is carried out in accordance with the standards of PBU 10/99, according to the following accounts:

• in case of violation of legal norms - in account 99 “Profits and losses”;
• in case of violation of contractual terms and obligations and provisions of the Code of Administrative Offenses - under account 76 “Settlements with various debtors and creditors”.

The documentary basis for reflecting penalty payments is a decision to bring to administrative liability or a payment (collection) order confirming payment of the penalty.

The organization includes the costs of paying the penalty by decision of the judicial authorities and accepted by the debtor in non-operating expenses, thereby reducing the taxable base of the income tax (Article 265 of the Tax Code of the Russian Federation). Based on PBU 18/02, this type of cost is not an integral part of the income tax and is not included in the base that forms the income tax. Therefore, collection costs are written off at the end of the reporting period.

Compensation for traffic police fines at the expense of the guilty party

In accordance with Art. 238 of the Labor Code of the Russian Federation, the organization has the right to recover the paid fine from the guilty person. In this case, the driver may be found guilty.

If the organization that owns the vehicle was assessed a traffic police fine, the damage compensation transactions will be as follows:

DT 73 – CT 91.1 – the amount of the fine is allocated to settlements with the guilty person;

DT 70 – CT 73 – amount withheld from salary, or

DT 50 – CT 73 – the amount was voluntarily deposited into the cash desk of the enterprise.

Example

Driver Smirnov A.V. in a car owned by Alpha LLC, he exceeded the speed limit and was fined 1 thousand rubles. To reflect this fine for traffic violations in accounting, the accounting entries will be as follows:

DT 91.2 – CT 76 (1000 rub.) – fine charged

DT 76 – CT 51 (1000 rubles) – the amount of the fine is transferred to the budget

DT 99 – CT 68.4 (1000 x 20% = 200 rubles) – permanent tax liability reflected

DT 73 – CT 91.1 (1000 rubles) – the fine is assigned to the guilty person

DT 50 - CT 73 (1000 rubles) - the driver deposited the amount into the cash register.

Calculation of fines: postings

In case of violation of tax laws, the accrued amounts of penalties are charged to the profit and loss account. In accordance with Order of the Ministry of Finance dated October 31, 2000 No. 94n, a subaccount 99.09 “Other profits and losses” is opened to account 99 “Profits and losses”. This sub-account records fines assessed for violation of tax laws in correspondence with the corresponding tax account. In general, the entry for calculating penalties for violation of the law looks like this: Dt 99.09 Kt 68 (69).

Examples of postings for violation of tax laws:

• Dt 99.09 Kt 68.01 - for non-payment of personal income tax;
• Dt 99.09 Kt 68.02 - for violation of the procedure for submitting reports electronically;
• Dt 99.09 Kt 69.01 - for failure to provide reports.

To calculate all other penalties, including traffic police fines and penalties under business contracts, you should use account 91 “Other income and expenses” in correspondence with account 76 “Settlements with other debtors and creditors.”

The organization's expenses for paying penalties are reflected in the debit of account 91.02 as part of other expenses (clause 11 of PBU 10/99).

The organization's income from receiving fines due under business contracts is reflected in the credit of account 91.1 as part of other income (clause 7 of PBU 9/99, Order of the Ministry of Finance dated October 31, 2000 No. 94n).

Deciding on the type of fine

In order to determine the accounting procedure for a fine, it is necessary to clarify its nature. So, for example, a fine assessed for violation of tax legislation in accordance with the norms of the Tax Code of the Russian Federation is reflected in profits and losses in account 99 “Profits and losses” (Order of the Ministry of Finance dated October 31, 2000 No. 94n):

Debit account 99 – Credit account 68 “Calculations for taxes and fees”

And if this is a fine payable for violating the terms of a business agreement or a fine accrued in connection with a violation of the norms of the Code of Administrative Offenses of the Russian Federation, then it will be reflected as part of other expenses (clause 11 of PBU 10/99).

Accordingly, the accrued fine receivable for violation of contractual terms will be recognized as other income (clause 7 of PBU 9/99, Order of the Ministry of Finance dated October 31, 2000 No. 94n):

Debit of account 76 “Settlements with various debtors and creditors”, subaccount “Settlements on claims” - Credit of account 91 “Other income and expenses”

Thus, the accrued fine for traffic violations will correspond to the following accounting entry:

Debit account 91 – Credit account 76

A similar posting will reflect the accrual of a fine by the labor inspectorate and other similar authorities.

Therefore, payment of an administrative fine will be reflected as follows:

Debit of account 76 – Credit of accounts 50 “Cash”, 51 “Cash accounts”, etc.

A separate sub-account “Administrative fines” can be opened for account 76. In this case, analytical accounting on account 76 is maintained for the counterparty who issued the fine.

Tax fines and penalties

The postings will be like this:

Debit 99 Credit 68 (69) - a penalty has been charged for tax (insurance contributions).

Debit 68 (69) Credit 51 - the tax penalty (insurance contributions) is transferred.

Important! Tax penalties are not taken into account when determining the tax base for income tax (clause 2 of Article 270 of the Tax Code of the Russian Federation).

In addition to penalties, for late payment, regulatory authorities may charge penalties based on 1/300 of the refinancing rate of the Central Bank of the Russian Federation (Article 75 of the Tax Code of the Russian Federation). Penalties = Tax arrears x Number of calendar days of delay x 1/300 of the refinancing rate. Penalties begin to accrue from the next day after the tax payment deadline.

According to the Federal Tax Service, penalties should be accrued until the day of repayment of arrears on taxes, including this day itself (Explanations of the Federal Tax Service of Russia dated December 28, 2009). The courts and the Ministry of Finance do not agree with this approach (letter of the Ministry of Finance of Russia dated July 5, 2016 No. 03-02-07/2/39318). Arbitrators and financiers believe that it is unlawful to charge penalties on the day the debt is repaid.

Important! From October 1, 2017, if there is a delay of more than 30 days, penalties are calculated based on 1/150 of the refinancing rate (Federal Law No. 401-FZ dated November 30, 2016).

Most often, accountants write off penalties on account 99:

Debit 99 Credit 68 - penalties accrued.

Some experts believe that penalties should be attributed to account 91.

The organization will have to independently choose the accounting option and consolidate the corresponding rules in its accounting policies. Please note that penalties are similar in economic essence to fines. And account 99 is intended for accounting for fines. But if the company accounts for penalties in account 91, then it is necessary to reflect a permanent tax liability (according to the requirements of PBU 18/02).

The Federal Tax Service issued a demand to Mech LLC to pay penalties in the amount of 620 rubles. The accounting policy of Mech LLC stipulates that penalties are reflected in account 91. The company will reflect the transaction with the following entries: Debit 91-2 Credit 68,620 - penalties are accrued and reflected in the accounting records; Debit 99 Credit 68,124 - permanent tax liability calculated (620 x 20%).

Postings on fines

Let's consider the main entries for reflecting penalties in the accounting of non-profit organizations:

• Dt 99 Kt 68 - imposing penalties for violating the standards of current tax legislation;
• Dt 76.2 Kt 91 - a penalty was assessed for non-compliance with the terms and obligations under the contract.

For a non-profit organization, entries for traffic police fines are generated as follows:

• Dt 91 Kt 76. subaccount “Administrative fines” - the traffic police fine was assessed for an offense under traffic rules;
• Dt 76 Kt 50, 51 - accounting entries for a fine for violating traffic rules (the fine has been paid).

The accrual of sanctions from the Federal Tax Service for non-payment of tax is recorded as follows:

• Dt 99.1 Kt 68.4 - accrual of penalties;
• Dt 99.2 Kt 68.4 - reflection of the penalty accrued for late tax payment;
• Dt 68.4 Kt 51 - payment of late sanctions to the Federal Tax Service.

Expenses for penalties of budgetary institutions are reflected in KOSGU 290 - “Other expenses” (Order of the Ministry of Finance No. 65n dated July 1, 2013).

What to do with a fine under an agreement

It is necessary to take into account fines issued under contracts on 91 accounts. They are considered other income of the company, which is regulated by clause 8 of PBU 9/99 “Income of the organization.”

How to take into account the penalty for someone who suffered

To show the fine as income, the accountant must make the following entries:

• Debit 76.02 “Calculations for claims” Credit 91.01 “Other income” - for the calculated penalty.
• Debit 91.02 “Other expenses” Credit 68.10 “Other taxes” - reflects the state duty paid to arbitration for consideration of the claim.
• Debit 76.02 “Settlements on claims” Credit 91.01 “Other income” - the amount of state duty that the court decided to reimburse is taken into account.
• Debit 51 “Current accounts” Credit 76.02 “Calculations for claims” - the awarded penalty came to the current account from the debtor.

For tax accounting purposes, contractual sanctions are considered non-operating income, which will be included in the taxable base for income tax under clause 3 of Art. 250 Tax Code of the Russian Federation.

For example, a contract has been concluded for the supply of goods in the amount of 3,000,000 rubles. According to the terms of the agreement between the parties, the buyer pays an advance payment of 50% under the contract, and he must repay the remaining amount within 10 days after signing the delivery note. After this deferment, the penalty will be 0.01% of the amount of the unpaid portion of the goods for each day according to the calendar.

The buyer paid the advance on time, which means that what remains is:

• 3,000,000 * 50% = 1,500,000 rubles.

However, after receiving the goods and signing the documents, the buyer refused to pay the balance, arguing that this violation was due to a lack of funds in the current account. The supplier expected receivables to be paid within a month, then filed a lawsuit. Calculation of penalties for a claim:

• 1,500,000 * 0.01% = 150 rubles;
• 150 * 30 days of delay = 4,500 rubles.

In addition, a state fee of 2,000 rubles was paid for initiating a case. The court ruled in favor of the supplier, which means the following operations need to be done:

• Debit 76.02 Credit 91.01 - 4,500 rubles.
• Debit 91.02 Credit 68.10 - 2,000 rubles.
• Debit 76.02 Credit 68.10 - 2,000 rubles.

Analysis of account 76.02 for the 1st quarter of 2021

Output data: BU (accounting data)
Table No. 1. Analysis of account 76.02

As can be seen from the table, the debtor paid the penalty and state duty assigned by court decision, which means:

• Debit 51 Credit 76.02 - 6,500 rubles.

What should violators of the agreement do?

In turn, the person who violated the contractual terms takes into account the costs incurred in debit 91.02 “Other expenses”, and also adds them to the income tax return in the section “Non-operating expenses”, as dictated by paragraphs. 13 clause 1 art. 265 Tax Code of the Russian Federation.

For example, the buyer must pay a penalty of 4,500 rubles imposed by a court decision and a state duty presented by the plaintiff for reimbursement in the amount of 2,000 rubles. Postings for reflection in the program:

• Debit 91.02 Credit 76.02 - a penalty of 4,500 rubles was accrued, a state duty for reimbursement of 2,000 rubles.
• Debit 76.02 Credit 51 - the amount of debt of 6,500 rubles for penalties was transferred to the supplier.