Business environment: Two of the tax law changes bring taxpayers in the position to no longer be able to obtain cancellation of the notices of assessment

de Razvan Diaconu | 14.12.2016 .

 

cod_fiscal-300x200The Coalition for the Development of Romania (CDR) points out that the legislative package for simplifying and improving the tax legislation, recently approved by the Ministry of Finance and the Government, there are two provisions that will cause major implementation problems both for tax authorities and taxpayers.

According to a press release issued Monday by the organization, CDR reports:

The amendments to Article 165 of the Tax Procedure Code will put taxpayers in the position of not being able to obtain the cancellation of the documents of assessment issued following a tax audit, as their current payments based on the notices of assessment, made before the payment deadline from the document, will discharge tax obligations from this document and not those which are due and taxpayers seek to discharge.

Article 229 has also been amended so that for the attachments of the bank accounts from the enforcement proceedings, taxpayers will no longer be notified on the amount and nature of the debit. Taxpayers will have difficulties to defend themselves because of this lack of transparency, because they will know from the beginning neither the amount of the bank attachment nor the reason.”

The press release also states: CDR supports the fight against tax evasion, a predictable tax environment and a balanced relationship between taxpayers and authorities.

In this context, it is worth mentioning that most of the amendments recently made to the Tax Code and the Tax Procedure Code are welcomed and took into account the views of the business environment, but these two changes mentioned above represent a significant step back from the previous legislation and are not founded on solid or convincing legal arguments that would emphasize the need to adopt them.

Technical specifications of the Coalition are:

First, we consider changing art. 165 of the Tax Procedure Code, following which the period of the tax obligations imposed based on a tax audit will depend on the moment when the tax decision was communicated and not the payment deadline for the legal tax obligations, as it was prior to the amendment.

This change will, however, automatically lead to settling the tax obligations, even before their legal payment deadline expires, by the payments made by taxpayers in good faith for covering the current tax liabilities, which will remain as arrear.

Even worse is removing de facto the taxpayers right to obtain cancellation of the administrative-fiscal document of assessment, which becomes this way purely theoretical and illusory, as this option is still available under the existing legislation, but remained without any practical utility.

Cancellation of the enforcement of a document of tax assessment is one of the fundamental guarantees for taxpayers, traditionally accepted in the administrative and fiscal area, which at no time in the post-revolutionary history of the tax law has been questioned or challenged.

The amendment is even more surprising as in the initial phase of the public debate organized under the rules of transparency for the legislative process, the arguments raised by the Coalition against it have been accepted. Inexplicably, though, given especially the lack of any reasons in support to the measure, not even in the explanatory memoranda, the amendment is found in the final version of the legislative act.

Then it needs to be mentioned that the amendment of Art. 229 of the Tax Procedure Code, for eliminating the requirement that the enforcement procedure to mention the amount and nature of the debit in the case of the attachment of a bank account practically annuls the debtor’s right for defence, depriving them of a minimum of information that would enable the checking of the enforcement legality. This legislative change is likely to annihilate the progress of the civil procedure made in terms of enforcement procedure over the last century, whose provisions were included in the tax law as they represented the best practices in this area.

It is imperative that such details to be mentioned in the documents of the enforcement procedure, as a need for transparency and control of such measures, against the very serious consequences that they might cause.

The Coalition for the Development of Romania is a private initiative, apolitical, built as a collaboration agreement through collective participation of its members. The Coalition’s members voluntarily contribute resources and expertise to the formulation of common opinions on public policies impacting the business environment. The coalition comprises 45 organizations and associate members.

Publicat la data de 14.12.2016 .

Lasa un comentariu


SIMILAR ARTICLES

Iulian Soare

Law on hypermarkets / European Commission launched infringement procedures against Romania and Hungary

The European Commission started on Wednesday the infringement procedure against Romania and Hungary on the matter of retail of agricultural and food products More specifically, it is about breaching of EU law by adopting national laws that force hypermarkets to promote the local food products Specifically, the EC has decided to send letters of formal notice on the grounds that their ...
Read more »

Adrian N Ionescu

Memorandum: Sovereign Fund to be financed from selling shares of state companies and bonds

To obtain financing, the Sovereign Fund for Development and Investment (FSDI) planned by the Government will sell shares in the state companies received in its portfolio, provided that it will preserve the majority stake, according to the memorandum approved on Thursday by the Government for initiating the procedures for establishing the fund In the same time, FSDI will issue bonds to finance ...
Read more »

Vladimir Ionescu

World Bank, interested to support founding of Sovereign Investment Fund

Alexandru Petrescu, Minister of Economy The World Bank is interested in the announcement that Romania plans to establish a Sovereign Fund for Development and Investment and the bank representatives stated that they will support and collaborate with Romanian authorities for structuring the fund Elisabetta Capannelli, World Bank Country Manager for Romania and Hungary, and other officials met ...
Read more »

Iulian Soare

Romania, referred to CJEU over illegal landfills. EC asks Bucharest to allow Bulgarians to have equal access to fish from Black Sea

The European Commission has decided to bring Romania in The Court of Justice of the European Union because the country has not closed and rehabilitated 68 illegal landfills, despite the warnings and repeated demands to comply with Directive 1999/31/EC Under this Directive, member states are required to recover and remove the waste in a way that does not endanger the human health and the ...
Read more »

Victor Bratu

Forest Stewardship Council permanently withdrew certification for wood processed by Schweighofer

The international organization Forest Stewardship Council (FSC) announced Friday in a press release that permanently withdraws the certification for the wood processed by Austrian group Schweighofer, following a petition signed by over 250,000 citizens that activists from three countries (Germany, Austria, and Romania) handed over to the FSC directors Following this decision, the illegally ...
Read more »

MAINS

Prime Minister Grindeanu about 2017 budget: 5.2% economic growth, 815 billion lei GDP, 253 billion revenues

Prime Minister Sorin Grindeanu said on Sunday evening on Romania TV that the budget deficit in 2017 will fall within the set target of 3%, ... Read more

Back to the lesson of 2008-2014! Essential viewpoints about the type of growth we choose

The National Institute of Statistics announced the final value of GDP for 2014 at 668,143.6 million lei, in current prices, representing a growth rate of ... Read more

Trade deficit in 2016 is close to 10 billion euros, driven by imports of chemicals, fuel and food

The trade deficit in the first eight months of this year was EUR 6,133.8 million, about 28% higher than the same period of the last ... Read more

”Digital-Schweitzer” Romania: IT specialists explain why citizen is stuck between super computerized institutions

Ciolos government promised a revolution in reducing state bureaucracy, official emphasis being put on digitization and electronic communication, institutions being required to be transparent. This ... Read more