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The procedure regarding the tax amnesty established through Government Ordinance no. 6/2019 is now complete

In this issue:

Order of the Ministry of Public Finance no. 3126 of 19th of September 2019, was published in the Official Gazette no. 786/ 27.09.2019, Part I.

Order approving the Procedure for the annulment of accessory payment obligations and amending the Order of the Minister of Public Finance no. 2810/2019 for approving the procedure for the implementation of the measures for restructuring the outstanding budgetary obligations at 31st of December 2018, in the case of debtors who have principal debts in an amount greater than or equal to the amount of RON 1.000.000.

The Order of the Minister of Public Finance no. 3126 of 19th of September 2019 (the "Order") contains the implementing rules of Chapter II of the Government Ordinance no. 6/2019 (the “Ordinance”) regarding the establishment of tax facilities, respectively the adjournment of the payment or the annulment of the accessory payment obligations.

In addition to clarifying the categories of taxpayers concerned by the Ordinance and the debts concerned or for which adjournment or annulment can be obtained, the Order also includes the effective procedure for granting the facilities.

 

The Order contains the following main provisions:

Regarding the scope, the Order, defines, on the one hand, the budgetary obligations administered by the central tax body that may be subject to Chapter II of the Ordinance, and, on the other hand, the debtors who can benefit from the facilities. Regarding the subjects of  facilities, we note that legal entities with main budgetary obligations of more than one million LEI - in principle excluded from the applicability of Chapter II of the Ordinance, still can benefit from the procedure for annulment of accessory payment obligations only if the decisions of taxation regarding main obligations will be communicated to them due on 31.12.2018, as a result of a tax inspection in progress on 08.08.2019, regardless of the date of communication of the taxation decision. In this situation, the request for annulment of accessory payment obligations must be submitted within 90 days from the date of notification of the tax decision.

About the subject of the tax facilities, the Order identifies the types of tax facilities which can be granted, as well as the categories of accessory payment obligations which, according to the Ordinance, can be subject to the annulment.

In addition, the Order regulates in detail both the procedure of granting adjournment of payment until the settlement of the request for annulment of accessory payment obligations, as well as the procedure of obtaining annulment of accessory payment obligations.

In this respect, the methods of filing the notification by which the debtors express their intention to benefit from the tax facilities are regulated, the elements that the notification must contain, as well as the procedure of settlement by the tax authorities. In a similar way, the request for annulment of accessories is regulated.

It is important to mention that, even if the debtor follows the required procedure, the annulment of accessories does not automatically operate, but only if a request for annulment of accessories is filed until 16th of December 2019.

In relation to the term until the request for annulment of accessories must be filed and the outstanding main debt must be paid, the Order provides a deadline on 16th of December 2019, while the Ordinance requires that these operations must be performed until 15th of December 2019.

Both documents - the notification and the request for annulment  - can be withdrawn by the taxpayer at any time, by submitting a request, following which the tax authorities take note of the withdrawal.

The Order also regulates the situation of annulment of obligations in the case of persons for whom joint liability has been established according to Law no. 207/2015 regarding the Tax Procedure Code or the liability according to Law no. 85/2014 on insolvency prevention and insolvency proceedings or according to Law no. 85/2006 on insolvency procedure.

The annexes of the Order contain the standard forms of the necessary documents for the present procedures.

 

Prepared by:
Alex Slujitoru – Senior Managing Associate, Radu și Asociații SPRL

 

For additional information, please contact:
Alex Milcev - Partner, Head of Tax&Legal

 

Ernst & Young SRL

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Sector 1, 011171, Bucharest, Romania

Tel: (40-21) 402 4000, Fax: (40-21) 310 7124

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