Deadline for submission and deposition of financial statements of companies, 30th May is coming. Companies not complying with this obligation shall face serious consequences. The state tax authority discontinues the company's tax number, even more, the registry court may cancel such a company from the trade register.

In accordance with the Act on Accountancy No. C/2000, each business with double-entry bookkeeping (including Hungarian subsidiary of a company with seat abroad) has to submit and deposit its financial statements. As of 1^st May 2009, the financial statements (comprising balance sheet, profit and loss statement, notes), the decision on the usage of the profit after taxes, the independent auditor's report (in the case of compulsory audit) and the electronic form prescribed by law have to be submitted to the Company Information Service electronically through the government portal. Scanning of the paper-based financial statements and sending the financial statements in scanned format are not possible any more. Companies working according to the calendar year can submit their financial statements about 2010 without delay by 30^th May 2011 in this year. The electronic form is forwarded by the Company Information Service to the tax authority.

Consequences of non-fulfilment
On the basis of the electronic forms forwarded by the registry court, the tax authority checks whether and when the financial statements were submitted. The tax authority sends companies not fulfilling their obligation a reminder within 30 days after the statutory deadline. If the company fails to submit its financial statements within the deadline set in the reminder, the tax authority initiates the discontinuation of the company's tax number for 60 days within a decision. No appeal is possible against this decision. The tax authority communicates the fact of tax number discontinuation on its website. Due to missing statutory authorization, the tax authority does not send the decision to the companies involved by the usual way. This decision contains the start and end dates of the discontinuation period. If the company complies with its obligation within this period, it can request the tax authority to withdraw its discontinuation decision. If also this period passes by without result, the tax number of the tax payer will be actually discontinued for 60 days. The tax payer cannot use its intra-community tax number and cannot claim and deduct input tax either, not to mention the damaged reputation of the company.

If the company does not comply with its obligation during the tax number discontinuation period either, the tax authority has to apply to the registry court electronically initiating statutory control of the company.

Financial statements of organizations not registered by the registry court like foundations, sports clubs, condominiums, shoots, water and other associations, societies, parties, lawyer offices, individual entrepreneurs, churches and trade unions shall not be submitted.