Bottom of portfolio management

What is Bottom of Portfolio Management?

The majority of companies work their balance from top to bottom

The problems are:

• The management and cost of managing small claims that pollute the accounts….
• A real tax problem:

The loss

The principle is that in the absence of payment of an invoice, a company must be able to justify that it has attempted to collect this invoice . This failed attempt must be materialized by a certificate of non-recovery which must comply with the provisions contained in article 272 of the General Tax Code.

Two consequences are likely to impact your company's finances:

1) For companies subject to VAT

CACs and any tax auditors may ask to justify the steps taken to recover the VAT. In the case of non-justification of a treatment of the files, the tax authorities can claim from you the sums due under the VAT even if the debts are written off.

2) Corporation tax

Transfer to loss : deduction from turnover and a fortiori from the calculation of corporate tax (taxes on companies when they are in bonus or conversely because of transfers to loss).

The CACs and especially the FISC during a tax audit, the CACs and especially the FISC must verify the reality of the passages in loss.
You will then be asked to justify the actions taken by your services in order to recover your debt.

In the absence of supporting documents, the tax inspector will be entitled to refuse the passage in loss and to reintegrate these sums into the CA and consequently to claim the corresponding corporate tax from you, even though it will be impossible for you to recover the debt.

Today this wallet costs you 100%

Paris Contentieux international manages this part of your portfolio and either transfers the funds to you or issues you a certificate of non-recovery in order to justify the loss and clear your balance