Tax inspections and desk-audits
Do you have a high tax risk?
The National Agency for Fiscal Administration (NAFA) has recently issued a draft order on remote verification or desk audit, in which a tax decision can be issued for specific deviations without the need to conduct a tax inspection.
Working from home forces us all to "reinvent" ourselves, and ANAF is no exception. In July, a draft order was published on the website of the Ministry of Finance, aimed at desk-audit or remote documentary verification by Antifraud or Fiscal Inspection.
The novelty of this type of fiscal verification consists in the fact that at the end of the verification the inspectors can issue a tax decision which does not mean however that the taxpayer cannot be subject to a subsequent general verification. The taxpayer has the possibility to appeal such a tax decision resulting from the remote documentary verification.
Noutatea acestui tip de verificare fiscal? const? ?n faptul c? la finalul verific?rii inspectorii pot emite o decizie de impunere, sub rezerva verific?rii ulterioare, iar contribuabilul are posibilitatea de a contesta o astfel de decizie.
In other words, such a tax decision does not automatically exempt taxpayers from general or thematic tax inspections (general tax inspections, VAT refunds, etc.).
In addition, if until now taxpayers faced unannounced inspections that were finalized, according to the law, with a minute report (and sometimes, in rarer cases, with seizures), as a result of which it was usually triggered the tax inspection, now ANAF has at its disposal a new verification mechanism (remote one), through which it can directly issue tax decisions.
What the transfer pricing implications can be?
With regard to taxpayers who carry out transactions with affiliates, if until now the tax risk was established following an unannounced inspection, we may have to deal in the future with the issuance of surprise tax decisions aimed at adjusting transfer prices, at least in the case of companies that have operating losses or reduced profit margins, VAT reimbursements or other particularities of fiscal and transfer prices risks.
In the context of an increasing number of tax inspections starting with June (to recover the economic downturn from the state of emergency) and the introduction of desk-audit in the next period, we can expect an avalanche of tax decisions targeting tax and transfer prices issues.
How can you reduce the risk of tax and transfer pricing adjustments?
What you can do and is within the reach of any taxpayer is a tax review of all tax issues in recent years. A voluntary adjustment or a correction in the tax returns may be well received and may exempt you from a consistent tax decision to which payment accessories are usually added.
How can a tax consultant or transfer pricing specialist help you?
The question is what value do I have to voluntarily adjust if I have a transfer pricing risk or what value do I need to correct if I have any other tax risk?
Estimating the amount of these adjustments can be done by an in-house tax / transfer pricing specialist or an external consultant who can help you reduce your future tax risks.
^^^
About Cabot Transfer Pricing
For 10 years, Cabot Transfer Pricing has been one of the fast growing local tax consultancy company specialized in transfer pricing services. With a team of 5 bright professionals, the company has been serving a portfolio of more than 300 companies - subsidiaries of local or multinational groups. Find out more at www.cabot-tp.ro.
About Alina Andrei
Alina Andrei is a certified tax consultant and founder of the consulting firm Cabot Transfer Pricing. She has 12 years experience in the taxation and 11 years in the transfer pricing field. Find out more here: Linkedin.