Mandatory cost correction after 90 days of unpaid invoices — rules for creditor and debtor.
An unpaid invoice has tax consequences. After 90 days the debtor must reduce costs, the creditor may reduce revenue.
If business didn't pay an invoice within 90 days of its due date — must reduce tax costs by unpaid value. After payment — reverse the correction.
Creditor unpaid after 90 days may reduce taxable revenue. Optional. On payment — increase revenue.
Doesn't apply to related-party invoices, disputed invoices, claims from bankruptcy/restructuring.
Cost correction is unpopular but necessary. Danexis monitors deadlines and prepares corrections.