Taxation & Fiscal Litigation
With business becoming multinational and national tax legislation changing so fast that it is getting harder and harder to keep up with it even for the specialists, Taxation becomes an issue that makes the difference between winning and losing, in terms of turnover and profit.
Starting with the legal opinions we provide, which clarify for our clients from the beginning the meaning of a certain provision and the right way to put it into practice, in order to prevent them from being penalized by the state authorities, continuing with assistance during the fiscal inspections, where we defend and argue our clients’ tax practices before the inspectors, and going all the way to the representation of our clients at all levels of Courts in trials filed against the fiscal inspection decisions, our team has extensive expertise in delivering full legal support and helping our clients to comply with the complexity of the tax legislation.
Closely connected to the Taxation Legal Services, our team assists clients in all customs matters, including the assistance and representation before customs authorities and representation at all levels of Courts in order to prevent our clients from being penalized by the state authorities and to save our clients duties, taxes or fines.
In figures, we have represented our clients in court proceedings concerning tax assessments and penalties of over €5 million.
Frequently Asked Questions
What happens during a tax audit in Romania?
A tax inspection is governed by the Romanian Fiscal Procedure Code. As a rule, the company receives prior notice stating the taxes and periods to be audited, although unannounced inspections are also possible. Inspectors review accounting records, contracts and supporting documents and may request written explanations. Before the audit is closed, the taxpayer is given the opportunity to present its point of view on the findings. The audit ends with a tax inspection report and, where applicable, a tax assessment decision.
How can a company challenge a tax assessment in Romania?
The first step is a mandatory administrative appeal, filed with the tax authority within the deadline set by the Romanian Fiscal Procedure Code from the communication of the assessment. If the appeal is rejected, or not resolved in time, the company can bring an action before the administrative litigation courts. Filing an appeal does not automatically suspend enforcement of the assessed amounts, but the company may ask the court to suspend it. Preserving arguments and evidence from the audit stage is important.
How far back can Romanian tax authorities assess additional taxes?
The tax authority's right to assess tax liabilities is subject to a general limitation period of five years, which usually starts on July 1 of the year following the fiscal year in which the liability arose. A longer period applies where the liability results from acts qualified as criminal offenses, such as tax evasion. The limitation period can be interrupted or suspended in certain situations, so the exact calculation should be checked case by case.
Can a company obtain an advance tax ruling in Romania?
Yes. Companies can ask the Romanian tax administration (ANAF) for an advance tax ruling on how tax rules apply to a specific future transaction, and for an advance pricing agreement on transfer pricing between related parties. A fee is payable, depending on the type of request and the size of the taxpayer. As long as the facts presented remain accurate and the relevant law does not change, the ruling is binding on the tax authority.