Backdating document

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Different considerations may apply from accounting and tax perspectives, and those aspects should be taken into account too.What you can’t do Clearly, you can’t backdate a document so that is appears to have been signed on, say, 31 December, when in fact it was signed on 15 June.Whatever the reason, it is fraud and a notary is bound by his oath of office not to participate in such a practice.The function of a notary is to serve as an impartial witness to a transaction.Similar situations may arise in relation to intra-group supplies of goods of services, or transfers of a business (where the associated transfer of employees may also be a matter of record).In this kind of situation, the following general approach should be considered: – the relevant arrangements can be documented in the appropriate form, such as a loan agreement or business transfer agreement.

A reputable notary will never engage in this practice for any price.

As mentioned above, it is a matter of accounting practice as to whether the transaction can properly be accounted for as taking place on 31 March.

This is obviously something you will want to discuss with your auditors.

Backdating the economic effect of a transaction which hasn’t happened yet In other cases it may be clear that the transaction has not happened yet.

But there may still be a desire to backdate the economic effect.

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