The following is the tax treatment for each item:

 

The following is the tax treatment for each item: 

No	Items	Tax examination provisions
1	Net sales revenues	1- The sales has been truly valued and the products has been delivered to the customers. The firm may follow some approaches to show the sales figure as less than that what it should be:
		A)The firm may not record a part of its sales, by postpone the entry of some sales concluded at end of the current period and delivered to customers, until the beginning of the new period.
		B)The firm may not record the goods which have been sold by commission agents during the year and postpone their entry until future periods.
		C)The firm may not record the value of goods with drawn by its owners for their own personal use. Owner’s withdrawals recorded with selling price not cost.

		D)The firm may not record the goods which customers have accepted during the year, out of the goods which were sent to them in the form of under-acceptance goods during the year.
		E) The firm may record artificial sales returns, or record sales returns which are made at the beginning of the new financial period as if they were transacted during the current period.
		F) The firm may be record sales returns at a value higher than their original sale value, such as not taking into consideration in the pricing which was previously granted to the customer in terms of a commercial allowance or discount.

		some factors may inflate the sales figure, and show it higher than its true value:
		A) The firm may record some artificial sales by entering sales which were made at the beginning of the new period as having been occurred during the current period despite the fact that the corresponding goods have been entered into inventory in the current or present period.
		B) The firm may record goods dispatched to the commission-agents as being sales, without entering them as part of the goods in stock of the end of period.
		C) The firm may record goods dispatched to customers for sale or return, which were not accepted during the year, as being final sales.

		D) The firm may not record sales returns made during the year, and put off their entry to future periods.
		E) The firm may record fixed asset sales as part of the sales.
		2- Sales of Remnants should be recorded.