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On 30 August 2002 the Ministry of Finance (MOF) announced amendments to the Rules of Tax Authorities Governing the Business Entities' Accounting Books and Vouchers. The changes are to respond to the computerization of business entities, and to bring the rules into line with re-cent amendments to the Business Tax Law and the Business Accounting Law (BAL). The main points are as follows:
At least either journals or general ledger of an entity must be in bound form, unless the en-tity's account is computerized. The provision that required an entity to apply to the compe-tent tax authorities for authorization is abol-ished.
If an entity to which the BAL applies has a sound accounting system and prepares daily summer for ledger accounts, it need not maintain a journal. The provision that re-quired an entity to apply to the competent tax authorities for authorization to prepare daily summary for ledger accounts is abolished.
The BAL now explicitly regulates the use of computers by business entities to process ac-counting records, and businesses can follow its provisions. The requirement for an entity to seek approval for such use from the com-petent tax collection authority is deleted.
Accounting translations must be recorded on a daily basis, in the chronological order of their occurrence, in all accounting books required to be maintained by a business entity (and not only the journal), and must be entered no more than two months after the event.
Under a new provision, with the approval of the competent tax authorities an entity may reduce its accounting records to microfiche, or store them on computer media such as mag-netic drums, disks or tape, or optical disks, in chronological order; the original accounting records may then be destroyed.
Under a new provision, the accounting records and vouchers of a business entity that is wound up in the course of a demerger should be kept by the pre-existing or newly formed entity that invests the greatest sum in acquir-ing its business or assets, unless a different custodian is designated by agreement.
The provision that required a business entity to seek approval from the competent tax au-thorities before using accounting codes in-stead of accounting names or using commod-ity codes instead of goods names is abolished.
