Amendments brought to the Tax Procedure Code

Law no 207/2015 regarding the enactment of Tax Procedure Code, published in the Official Gazette no. 547 of 23 July 2015.

The Law no. 207/2015 enacting a New Tax Procedure Code was approved and published in the Official Gazette.
The new Tax Procedure Code shall become effective starting with 1 January 2016 and will apply to the administrative procedures started after this date.

Main amendments

In dubio contra fiscum

The new provisions, provides 5 new main interpreting principals of the tax law. If after applying this interpretation rules, there still are unclarities it will be applicable the rule of interpretation of the tax provisions in the favor of the tax payer (in dubio contra fiscum).

The lack of jurisdiction of the tax body sanctioned with the nullity of the deed

The new provisions sanction with voidances the issuance of an administrative tax deed by breeching the regulations regarding the jurisdiction.

The possibility of the tax body to issue a new administrative deed following the voidance of the initial deed

The new tax procedure code provided the possibility of the tax body to issue a new administrative deed in the event that initial one was voided. This possibility is limited however by the fulfillment of the status of limitation or in the event the voidance was due to issue in fact flaws concerning the deed.

New reporting obligations of the financial institutions

New obligations concerning reporting are enacted concerning the financial institutions with respect to the fulfillment by the Romanian State of the obligations regarding the information exchange at the European Union level or at the level of international treaties.

Alteration of the settlement term for the applications

The settlement term of the applications submitted by the tax payers is altered to 90 days in the event a tax audit is required for settling the applications. Also there are introduced new cases of extending this interval by the tax authority.

Extension of the cases when a tax payer is declared as inactive

The tax payers may be declared inactive also in the event the period of existence of a company has expired, the company does not have statutory bodies, or the period for holding the space required for the headquarters has expired. The tax payer will be notified by 30 days before being declared as inactive in the last two cases provided above.

The alteration of the date form which the status of limitation starts

For all the tax liabilities was set a single moment for staring of the status of limitation period, as of 1st of July of the next year for which the tax liabilities are owed.

The suspension of the status of limitation period only during the tax audit

Performing a tax audit will suspend the period of the status of limitation, concerning the tax body right to set tax liabilities, only for the legal period of the tax audit.

Alterations concerning the length period of the tax audit

The tax audit was differenced considering the tax payer category (180 days large tax payers, 90 days middle tax payers, 45 days other tax payers).


Particular sanctions in the event of breaking the legal period of the tax audit

If the legal period of the tax audit was illegally overpassed with a period equal with the period of the tax audit, the tax audit is stopped without issuing a tax audit report. In this case the tax audit can be resumed if such an agreement is provided by the hierarchical superior body and by observing the period of the status of limitation.


Limiting the period of suspensions of the tax audit

The new provisions enact a maximum period of suspension of a tax audit to 6 months.

Temporary tax decision

It is regulated the possibility that at a tax payers request, the tax audit body may issue a temporary tax decision during the tax audit, in order for the tax payer to pay the additional tax liabilities levied by the tax body.

More detailed regulations concerning the unannounced audits

The length period of the unannounced audit cannot exceed 30 days. Moreover for the same operations and the respective tax liabilities there cannot be simultaneously performed a tax audit and an unannounced audit.

The new procedure for refunding of the income tax hold at source

A new procedure for refunding the income tax hold at source is provided, according to which the refund will be performed to the tax payer by the actual payer of the tax obligations, and subsequently the actual tax payer will regularize afterwards the tax obligations.

The new procedure for regularizing a tax obligation in case of reappraising a transaction

A new procedure of regularizing a tax obligation established in case of reappraising a transaction by the tax body with the tax paid by the tax payer and/or the actual payer concerning that transaction.

Unreporting penalty
The New Tax Procedure Code enacts an unreporting penalty of 0.08% per day for the principal tax obligations unreported or reported inaccurately by the tax payer and established by the tax body by the tax decision.

The unreported penalty shall be applicable upon the receivables raised after 1st of January 2016.

Limiting the length period of the precautionary measures and the possibility of challenging them before the administrative court
The precautionary measures shall not be any more able to be established for a period longer than 6 months or at most 1 year in particular situations, and the decision establishing them will be challengeable directly before the administrative court.

The tax payer has the possibility of requesting the tax challenge settlement body to set a hearing for orally sustaining of the tax challenge lodged against of a tax administrative deed.

Introducing a table concerning the bail amount for suspending the tax administrative deeds

Setting the bail for suspending the force execution will be performed based on a new table set by the new provisions.

Limiting the cases when the revocation of the tax administrative body is possible

As a consequence, the revocation of the administrative deed shall not be performed more than once and only in the event when, based on the existing documents at the case file and following the steps undertaken by the issuing tax body, it cannot be established the issue in fact in the case presented for settling by reference to the legal arguments raised by the issuing body and the plaintiff.

The clarification of the interest and penalty status during the period when the tax decision is suspended

It is provided that during the period when the tax decision is suspended no late penalties shall be owed.

The possibility of addressing the administrative court in the event the tax challenge is not settled within the 6 months term

The New Tax Procedure Code provides the possibility for the tax payer that did not received within 6 months from lodging the tax challenge against an administrative deed, an answer, to address to the administrative court.