The civil offences covered by Prevention Law and the remedy plan template

12/02/18

In brief

A recent Government Decision lists the civil offences covered by the Prevention Law and sets out the remedy plan template.

The Prevention Law, in force since 17 January 2018, is aimed at regulating a set of instruments to ensure the prevention of civil offences.

In detail

The Prevention Law offers taxpayers the possibility to remedy situations having led to the assessment of certain civil offences by the tax authorities, and to be sanctioned by a mere warning, with no complementary sanctions.

For one or more civil offences committed by a taxpayer, which are within the scope of the Prevention Law, the tax authorities prepare a findings note in relation to the civil law offence / offences and related sanction, to which the remedy plan to be followed by the taxpayers is enclosed.

The term allowed to remedy a civil offence is established by the tax authorities by reference to the factual circumstances and the time required for fulfilment of the legal obligations. The maximum term is of 90 calendar days as of the date of delivery/communication of the findings note. Once established, this term cannot be changed.

Authorities are required to resume inspection within 10 days as of the remedy expiry date.

According to the law, the warning sanction applies without any remedy plan in any of the following cases:

  • the offender fulfils his / her legal obligation during the inspection;
  • the committed civil offences is not recurrent.

If, within three years as of the date of a warning sanction under the Prevention Law, a taxpayer commits the same civil offence, she / he will no longer benefit from the provisions of this law for the latter civil offence.

Eligible civil offences include:

  • failure to file the forms for fiscal registration, de-registration and corrections, by the statutory deadlines;
  • failure to fulfil the reporting obligations stipulated by law (e.g. taxes, contributions, goods, income etc.);
  • failure by the taxpayer to comply with the obligation of providing a statutory declaration, at the end of a tax inspection, stating that all documents and information requested by the tax authorities have been made available;
  • failure to comply with the obligation of preparing and making available the transfer pricing file;
  • failure to comply with the obligation of keeping and providing tax authorities with archived electronic data and electronic applications that generated such data;
  • failure by the taxpayer to provide in due time the regular information required by the tax authorities;
  • failure to comply with the obligation to file the net worth and income return for individuals subject to inspection of their personal tax status;
  • performance of intra-community operations, by persons that failed to comply with their obligation of becoming registered in the Register of intra-Community operators;
  • failure to file by the statutory deadlines the recapitulative statements or the filing of inaccurate or incomplete recapitulative statements;
  • breach of the Company Law provisions regarding the content of documents issued by a company (i.e. any invoice, order, tariff, prospectus and other business papers must state the name, legal form, registered office, Trade Registry number and fiscal registration number of the company that issued the documents);
  • failure to submit with the Trade Registry the general shareholders meeting decisions, by the statutory deadline;
  • failure to purchase the tax inspection register by the statutory deadline;
  • breach of certain provisions of Law no. 15/1994 regarding the depreciation/amortisation of capital tied in tangible and intangible assets (e.g. recognition as fixed assets of items which according to the law do not fall in this category; calculation and recognition of depreciation for exempt fixed assets; application of useful lives, other than those established by law; recognition of other entry values than those established by law etc.);
  • breach of certain provisions of Government Emergency Ordinance no. 28/1999 regarding the obligation of economic operators of using electronic tax cash registers (e.g. issuance of a fiscal receipt containing erroneous or incomplete data, failure to hand fiscal receipts to customers or issue an invoice at customer’s request, failure to ensure the functioning of the electronic tax cash register within the legal technical parameters, throughout its useful life etc.);
  • breach of certain provisions of Government Ordinance no. 21/1992 regarding consumer protection (e.g. failure to inform consumers fully and accurately on the essential characteristics of services and products offered, failure to display prices in a conspicuous and unambiguous, easy to read form etc.).
[Source: Government Decision no. 33/2018, published in Official Gazzette no. 107 of 5 February 2018 Prevention Law no. 270 / 2017, published in Official Gazzette no. 1037 of 28 December 2017]

The takeaway

A recent Government Decision lists the civil offences covered by the Prevention Law, and sets out the remedy plan template.

The purpose of the Prevention Law is to regulate a set of instruments to ensure that civil offence-generating situations are remedied, which would have taxpayers being sanctioned by mere warnings.

The warning sanction applies to civil offences covered by the law, following remedy by the deadline established by the tax authorities. The maximum term is of 90 days as of the date of delivery/communication of the findings note.

 

For a deeper discussion of how this issue might affect your business, please contact:

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Mihaela Mitroi

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Ionuț Simion

Country Managing Partner, Romania

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Daniel Anghel

Tax and Legal Services Leader, Romania

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Diana Coroabă

Partner, Tax Services

Tel: +40 21 225 37 94

Ionuţ Sas

Partner, Tax Services, Romania

Tel: +40 21 225 3741

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