Accounting Offences

The Penal Code stipulates that for an accounting offence, a fine or maximum two years of imprisonment may be sentenced. The statutory definition of an accounting offence is met if an accountable person, a representative of such person, a person exercising de facto decision-making power in the organization of such person, or the person, who has been entrusted with the keeping of the accounts impedes the obtaining of a true and sufficient picture of the accountable person’s performance or its financial standing, in one of the following manners:

• failure to record business transactions or prepare financial statements, in violation of statutory accounting requirements;

• recording of false or misleading data in the accounts; or

• destruction, concealment or damaging of accounting documentation,

The Penal Code provides also for an aggravated form of the offence, which carries a maximum sentence of four years of imprisonment.

In addition, the Accounting Act stipulates that a fine for petty accounting offence may be sentenced if a person willfully or with gross negligence violates the statutory requirements for bookkeeping entries, maintenance of bookkeeping records or registration of the financial statements in the trade register.