The statute of limitations is generally associated with storage periods of probatory documents. But storage periods and statute of limitations are occasionally regulated by different laws. Consequently, while these periods coincide in some countries, in many others the extension of the statute of limitations directly impacts storage periods which are consequently prolonged. For this reason, changes in statutory periods mean taxpayers must analyze such initiatives and their impact on the storage period of fiscal documents.
Expanding limitation periods can impact local and multinational businesses alike. Local businesses may have to create a distinct storage period for fiscal documents created up until a certain date. Multinationals however face the additional challenge of keeping track of, interpreting and implementing new laws for multiple countries. Many of the new rules are often passed quickly leaving little time for companies to prepare and comply.
Source: SOVOS
