Hundreds of companies can expect fines from the IRS for not returning their financial statements. This is the first time that companies are fined here in Iceland for not returning their reports. The fine for the first infraction is 250 thousand kronur for each year that has not been reported. If the infractions are restated from now the fine will raise up to 500 thousand krónur. This is also the first time there are fines for imperfect finance reports. The fine for that is 150 thousand krónur.
“The regulation gives a month notice after the letter arrives to companies,” says Guðmundur B. Guðbjarnarson, manager of financial statements for the IRS. Many companies have contacted the IRS to avoid fines but the notice of the letters has now passed.
“Until now managers of companies have called and stated that this will be fixed. They have showed us that their situation is good, for instance an accountant, and we have given extra time to the notices but then our patience is over.”
The holding company Fons, owned by Pálmi Haraldsson, has not returned their financial statements for the year 2007. Fons owned the Sterling airlines. He returned three financial statements to the IRS, 2004, 2005 and 2006 in the beginning of June, accounted by Deloitte, after the news publications of 24 hours. Guðmundur did not want to confirm if Fons would be fined. “I guess there are others in worse situations.”
In the newspaper 24 hours, in the beginning of June, was stated that very few companies in the size group of Fons did not return their financial statements. One of them is B.M. Vallá. The company has not returned financial statements since the year 1995 or as far as public financial statements go back to.
“It is very serious when larger companies do not return their financial statements. Their cases are heavier than of smaller companies and have to go to court. 500 thousand krónur is not enough if there is intention behind the none return of the financial statements.” says Guðmundur. It is therefor special focus on the larger cases and unique that large companies are not doing their duty.
Companies are to return their financial statements eight months before the end of the financial year. So it is relative to August. Guðmundur says that they are rushing for the returns if the companies have not returned when the tax plan is out, which is in October.
News Article by Gunnhildur Arna Gunnarsdóttir
Original Article in Icelandic