needhelpplease1
New Member
is it legal to prebill a sale that won't actually take place for several months in order to avoid a scheduled sales tax increase?
Pre-billing to avoide sales tax increase
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FlaRiptide
New Member
Sales tax is based upon the invoice date. The invoice date can be construed as a contract to purchase date. Delivery date is irrelevant.
needhelpplease1
New Member
thanx flariptide!
i also found out this morning, since we don't actually have the product to sale and won't until july a fake purchase order was created to "receive" the product into the store's inventory and a fake payables invoice has been created (payables and inventory control are my areas of responsibility) that is now going to show up on all of our agings that get turned into 1) our bank that holds our line of credit and 2) our cpa firm that does our corporate taxes. i also found out a large freight charge was added to the sale to make it "look" like we didn't make any profit on the sale in order to avoid having to pay income tax on it. this just all smells really bad to me.
i also found out this morning, since we don't actually have the product to sale and won't until july a fake purchase order was created to "receive" the product into the store's inventory and a fake payables invoice has been created (payables and inventory control are my areas of responsibility) that is now going to show up on all of our agings that get turned into 1) our bank that holds our line of credit and 2) our cpa firm that does our corporate taxes. i also found out a large freight charge was added to the sale to make it "look" like we didn't make any profit on the sale in order to avoid having to pay income tax on it. this just all smells really bad to me.
Theresagail
New Member
Yeah, Wait till the bank see's it or even the auditors-- there will be a lot of explaining to do--If I were you I would keep my name off it
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