Potential amendments to the Fiscal Procedure Code

(Draft Ordinance regarding the amending of the Government Ordinance 92/2003 regarding the Fiscal Procedure Code published on the website of the Ministry of Public Finance (www.mfinante.ro))

The main amendments refer inter-alia to the following:

Advanced tax ruling

The deadline for the issuance of an advanced tax ruling is of 3 months (instead of 45 days as it is currently).

The extension of the deadline for solving the requests of the taxpayers

The extension of the 45 days deadline for solving the requests of the taxpayers cannot exceed 90 days. However, if a tax inspection is initiated in order to solve the request, the deadline is extended with the duration of the tax inspection, according to the law.

The tax registration certificate

The deadline for the issuance of the tax registration certificate is of 10 days (instead of 15 days as it is currently).

The interruption and suspension of the prescription period of the right to establish tax liabilities

The draft Ordinance provides for specific cases when the prescription period is interrupted/suspended.

The estimation of the taxable base

The draft Ordinance repeals the provision according to which the tax inspection bodies determine the taxable base and related tax liabilities by using the indirect methods for reconstructing the revenues and expenses in case it is found that the tax evidence of the taxpayer is incorrect, incomplete, fake, missing or in case it is not made available to the tax authorities.

According to the draft Ordinance, in these cases, the tax authorities may determine the taxable base and related tax liabilities based on reasonable estimation or may use methods approved by ANAF in this respect.

Deadline for presenting the taxpayer’s point of view

The taxpayer has the right to present, in writing, a point of view regarding the findings of the tax inspection within 3 working days as of the date when the tax inspection ends (i.e. the date when the final discussion with the taxpayer is set or the date when the taxpayer notifies the tax authorities that it gives up on this right).

The deadline for the issuance of the tax decision

The tax decision is to be communicated within 30 working days as of the date when the tax inspection ends (instead of 7 days from the finalization of the tax inspection report as it is currently provided).

The chargeability of the tax receivables of the debtors

In case of refund request for excise duties/VAT, the chargeability of the receivables occurs at the date of submission of the refund request within the amount approved for refund (instead of the communication date of the decision regarding the solution, as it is currently provided).

Fines in case of recapitulative statement

Failure to submit within the deadline the recapitulative statements is sanctioned with a fine ranging between RON 1,000 and RON 5,000. The filing of an incorrect or incomplete recapitulative statement is sanctioned with a fine ranging between RON 500 and RON 1,500.

The correction of the recapitulative statement within the legal deadline for submission of the following recapitulative statement shall not be sanctioned with fine if it was not previously established by the tax body. Also, no sanction is applied if the correction of the statement subsequent to the legal filling deadline is done due to a fact not attributable to the taxpayer.

The taxpayer fined has the possibility to pay within 48 hours half of the minimum amount of the fine.

Other changes

The draft Ordinance changes the provisions regarding the assistance for the recovery in Romania of the receivables established in another European Union Member State, as well as the assistance regarding the recovery in another European Union Member State of the receivables established in Romania.

By Venkatesh Srinivasan, Partner – Head of Tax and Legal, Ernst & Young Romania

(P) – this article is an advertorial