FINANCIAL FRAUDULENT REPORTING USING EXPENDITURE FOR CONSULTANCY SERVICES. ROMANIAN LAW AND JURISPRUDENCE
FINANCIAL FRAUDULENT REPORTING USING EXPENDITURE FOR CONSULTANCY SERVICES. ROMANIAN LAW AND JURISPRUDENCE

Author(s): Mihaela Tofan
Subject(s): Law, Constitution, Jurisprudence
Published by: Editura Universităţii »Alexandru Ioan Cuza« din Iaşi
Keywords: deductible expenses; consulting services; jurisprudence;
Summary/Abstract: The financial fraudulent reporting includes the use of methods and mechanism to reduce the tax liability, diminishing the tax amount either by increasing the deductible expenses artificially or by cosmeticizing the non-deductible expenses into false deductible. The paper evaluates the tools used in practice to qualify the expenses incurred for the provision of consulting services used by companies, in the context of Romanian taxation and the trends manifested in international taxation. Considering the very diverse nature of the points of view expressed in relation to this subject, the present analysis carries out an evaluation from a theoretical and jurisprudential point of view of the arguments used to establish the (non)deductibility for this category of expenses. Identified solutions are presented in the context of the volatility of the regulations at the national level, noting the stability of the interpretations given in the solutions pronounced by the national courts, but also the edifying role of the interpretations made by the Court of Justice of the European Union, even when the pending litigation does not explicitly address the issue the tax treatment applied to the amounts spent as consultancy.

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