November 8, 2017

Most of the time the tax inspection is interrupted for good reasons, sometimes, but less justified.

The interruption of the tax inspection thus prolongs its duration, otherwise limited to a maximum of 180 days for large taxpayers, 90 days for medium-sized taxpayers and 45 days for small taxpayers.

In order to extend the duration of the inspection to be carried out, tax inspectors use a number of “tricks”, sometimes unjustified, such as:

Requesting information that is sometimes not relevant to that inspection, for example, requesting the transfer price file to an inspection aimed at VAT refund;
Interruption of the tax inspection to carry out a large number of cross-checks on taxpayers under the administration of other tax units.

Very often it is requested “cross-check” to check from an accounting and fiscal point of view a commercial relationship “in font”, but under the pretext of suspicion regarding the reality and legality of a transaction between companies is wasted time in vain, since either there are no deficiencies on the “circuit in font”, or the threshold chosen and subject to verification is insignificant;

Suspension of tax inspection by using a generic and undefined sentence precisely and concretely by the normative act, namely “conducting specific research with a view to identifying persons or establishing the reality of transactions”.

Using this “generic presentation”, tax inspectors do not intend to investigate and interrupt a tax inspection, the effect being the extension and, from our point of view “covering”, in the light of the vague and inconclusive content of the legislative text.

Suspension of the tax inspection for requesting additional information from similar tax authorities in other EU Member States, although the VIES (EU-approved information system) verification system allows them to access this information in the short term.

It is good to know these things and, whenever the tax inspection is extended on one or more of the reasons listed above, to request additional information, by virtue of the provisions of the Tax Procedure Code and the Charter of Taxpayers’ Rights and Obligations during the conduct of the tax inspection.

Of course, the most important thing is to check whether the interruption of the tax inspection is done under the legal provisions. In this respect, you should know that the interruption of the tax inspection is done only for good reasons and on the basis of an official document issued by the head of the tax authority.

The suspension proposal will be made in writing by the tax inspection bodies by drawing up a report containing one of the reasons listed. If approved favourably, the report will be subject to the approval of the head of the tax inspection.

The suspension proposal will be made in writing by the tax inspection bodies by drawing up a report containing one of the reasons listed. If approved favourably, the report will be subject to the approval of the head of the tax inspection.

 

Subsequently, the tax inspection bodies will communicate to the taxpayer, in writing, the date from which the tax inspection action is suspended and, remember, one of the situations that we will present below.

The situations or conditions to be met in order to suspend a tax inspection, we can group them into:

  1. Unfavourable situations for taxpayers;
  2. Taxpayer-friendly situations.

The premiums are generally “pretexts” of extension, often unjustified, of the tax inspection, about which we talked previously, but we list them broadly:

  1. carrying out one or more cross-checks in order to verify the suspicions identified in relation to the taxable documents and opportunities to the taxpayer subject to tax inspection;
  2. for carrying out specific research in order to identify individuals or establish the reality of transactions;
  3. for requesting additional information from similar tax authorities in other EU member countries or countries with which Romania has concluded international conventions for exchange of information for tax purposes; for requesting the preparation and presentation of the transfer pricing file, etc.

Taxpayers’ favourable ones are suspensions under the following conditions:

  1. At the written request of the taxpayer; as a result of the occurrence of a justified cause;

Attention! It is granted only once during the tax inspection, but do not hesitate to ask for it, especially when you find that the tax inspection takes an unfavorable turn, look for a reason “justified” and you will definitely get the suspension;

In order to resolve the dispute against a previously issued tax administrative act that may influence the ongoing inspection or when the completion of the tax inspection depends on the decision of a final and irrevocable court decision. It is advisable to ask yourself to suspend the ongoing inspection in this situation, so as not to affect the results of the ongoing inspection with the effects of a previous tax solution;

If, on the date provided for the start of the tax inspection, the legal representative of the taxpayer is not present at the place of conduct of the tax inspection, nor has he appointed an authorized person to represent him in relation to the tax body.

Attention! Without the presence of the legal representative of the taxpayer can not start the tax inspection! Consider in what situation the limit you can use this legal provision.

IMPORTANT TO RETAIN!

The suspension of the tax inspection is also limited, so you can’t overdo it. Thus, the tax inspection is suspended until the date on which the reason for the suspension ceases, but not more than 6 months from the date of the suspension.

WARNING DECISION: Any communication of the suspension must be monitored for a period of time elapsed and act immediately on the control body if it does not resume the tax inspection after the expiry of the 6-month deadline.

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