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EY Romania: The most important fiscal challenges of 2016 for the companies
The most important fiscal challenges of 2016 for the companies of Romania are connected to the tax checks, local taxes - building taxes in particular, where significant changes have occurred from the very beginning of this year, and to the international regulations, says Alexander Milcev, partner and director of the Tax and Legal Assistance Department of EY Romania.
"In case of tax inspections, in the administrative stage and if matters get to the courts, one should know very well the Tax Procedure Code, as regards the local taxes, especially the real estate business; the new and more complex than in the past rules should also be understood, and everything that is connected with the international legislation; one should know all the BEPS (Base Erosion and Profit Shifting) changes, the alterations linked to the automated swap of information among the EU and the OCDE countries and all that they imply," Milcev detailed for AGERPRES on Thursday.
According to him, besides the tax modifications brought by the new Tax Code this year, there are less noticed, yet equally important ones in the Tax Procedure Code.
"The alterations (...) clarify and modify the tax payer - tax authority relationship, in terms of rights and obligations, stressing more on the rights of the tax authority, in terms of sanctions ruled by tax officials; even if already known from the past year, such sanctions are now stricter. Somehow, this aspect is part of the Tax Authority (ANAF) strategy regarding the voluntary compliance," added Milcev.
On the other side, the tax consultant sees a "worrisome" phenomenon, namely "a tendency to criminalize the tax problems."
Referring to the novelty of building taxation based on their destination (residential or nonresidential), and not based on the form of property (personal or corporate), the way of delimitation of home and business areas within the same building is not established yet. "The pay deadlines come in March, so the system has not been tested by a previous set of declarations. There are various interpretations, and until the first fiscal declarations are to be submitted we'll hopefully understand it," the tax consultant said.
As for the VAT declaration form, Milcev admits it presents misunderstandings and complications to the honest tax payers. On the other hand, he believes that "the ANAF and the MFP have adopted these rules to hold back the fraudulent registration for VAT purpose and to cut the so-called carousel fraud practiced in the EU countries exploiting 'loopholes' in the common VAT system."