October 18, 2017
For a tax inspection, you have to prepare. What does that mean?
Prepare and review your documents, which will certainly be requested at the beginning of the tax inspection and, if necessary, along the way:
• Accounting balance sheets and check balances drawn up at the end of the year for the period subject to the tax inspection;
• Tax documents, statements and documents attesting to the payment of taxes, taxes and contributions;
• Tax register if you are a corporate tax payer;
• Supporting documents for the services received by the company.
Caution: Check if all purchase/service invoices have contracts/orders, work situations, reception minutes, work reports, feasibility studies, market and other relevant materials.
It should be noted that the tax body no longer requires specific documents justifying the performance of a service, but in order to be recognised as deductible expenses, within the meaning of Article 25 (1) of Law 227/2015 on the Tax Code, respectively “for the determination of the tax result, expenses incurred for the purpose of carrying out economic activities shall be considered deductible expenses…” it is necessary to prove that these expenses have no purpose other than that for carrying out economic activities.
It’s simple! Submit only documents attesting that the service is intended for the conduct of economic activity, since the tax invoice has already provided you with the necessary legal framework.
Documents relating to the following situations:
a. minuses, deficiencies found in inventory;
b. technological losses;
c. disposal of fixed assets;
d. trade discounts and discounts;
For these situations there must be, in addition to supporting documents, provisions in the accounting policy manual.
• Tax residency certificates proving that the external supplier/provider is paying income tax to him in the country;
• Documentele care au legatura cu amortizarea mijloacelor fixe. In speta, registrul de inventar a mijloacelor fixe, fisele mijloacelor fixe, bonuri de mişcare a mijloacelor fixe, procese verbale de punere in funcţiune/scoatere din funcţiune (casare) a mijloacelor fixe.
Aceste documente, nu multe, dar consistente, vor face cu siguranta obiectul controlului fiscal si vi se vor solicita la inceperea inspecţiei sau pe parcurs!
To successfully complete the inspection, we recommend:
• The presentation of documents is made by a single person, preferably the chief economic director/accountant, so that there are no leaks, and tax inspectors are provided exclusively with the requested information and documents;
• Communication with the control body; it must ensure that you are kept informed of any findings at all times; do not avoid asking, whenever you have suspicions, to inform you of a situation/facts that requires clarification; then you will call a tax consultant so as not to get things out of control;
• Do not hesitate to ask the control body, if it asks for certain documents, the legal basis for their preparation, if you do not possess them; also ask for clarifications, if you present documents and the tax body considers them deficient, in order to clarify and respond to the requirements, ask an authorized tax consultant.
Note: Never, during the tax inspection, should you give the impression that you are dominated or overwhelmed by requests from tax inspectors. On the other hand, the basic rule: prevention is preferable to treatment.
So prepare for the tax inspection and we’ll tell you how in the future chapters.