The response from the Tax Authority addresses the inquiries of a taxpayer whose books and records were lost due to a natural disaster (flood). The taxpayer asked whether they could make entries in new books and whether a Certified Public Accountant (CPA) could prepare a production certification report.
The Tax Authority responded by stating the following:
- Force Majeure: Natural disasters are considered force majeure events, and the loss of books due to such events is considered an excuse.
- New Books: New books can be approved to replace the lost ones, and information from computer records can be transferred to these new books.
- CPA Report: While a full certification agreement is not required for a production certification report, it is necessary to prove that the lost books were indeed lost and that information related to production is available.
In summary, the Tax Authority allows the taxpayer to make entries in new books and permits a CPA to prepare a production certification report under certain conditions. However, it emphasizes that this is subject to certain legal requirements and that the necessary documents must be provided.
Source: Revenue Administration
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