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The paper presents some key elements regarding the way in which real estate investments are reflected in accounting. In this regard, the theoretical aspects are illustrated by some practical examples, in an attempt to capture the specific of operations related to the recognition in accounting of real estate investments.
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The tax opinion seeks to establish the tax implications – concerning the VAT and the tax deductibility on expenses from the taxable base of profit – in the case of goods/merchandise such as stocks of food products to be removed from the inventory management system, either due to the completion of expiry term in the immediately following period or as a result of the recent completion of the expiry term.
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Topics like ”abuse of law” and ”aggressive tax planning” are under scrutiny of decisionmakersfrom taxation field for a while. In our tax legislation one may find provisions on tax evasionfighting and provisions destined to restrict the abuse of law. In this context, it is useful to summarizethe anti-abuse provisions from our legislation on direct taxation with regard to transactions withnon-residents. There were identified the relevant regulations and the correlation between as well asthe tax consequences for abuse of law. Although there are several definitions in our legislation, theessential feature of the abuse of law is the scope pursued: obtaining tax advantages that, under normalconditions, could not be attained. Starting from this, beside the various concepts analysed, the mainconclusion is that abuse of law has to be proved by tax authorities, indicating both the objectiveelements and evidence that have considered when assessing the abuse of law.
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Sooner or later, the pension becomes an important element for every person. At this moment, Romania has a multi-pillar pension system consisting of: pillar I (state public pension),pillar II (privately administered private pension), pillar III (voluntary pension) and pillar IV (occupational pension). The tax legislation applicable to pillar III is the subject of this paper as it has generated a number of discussions among practitioners. Thus, the paper makes an inventory of the particularities, problems (constraints) and opportunities in the matter of the fiscal regime applicable to the amounts paid to the voluntary pension funds, respectively: (i) the taxation of the contributions paid by the employer for the employee; (ii) taxation of contributions paid by the employee; (iii) taxation of the results obtained from the investment of contributions; (iv) taxation of voluntary pension rights.
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The following article highlights the main changes brought to the single tax return for 2020-2021 and the main aspects that can still be improved in order to ease the taxpayer’s reporting obligations in the future. As the legislation is changing constantly, even the most proactive of taxpayers face a challenge when preparing and submitting their annual tax returns. The COVID-19 pandemic has generated new factors that need to be considered when determining one’s reporting obligations in Romania. In the same context, some facilities were introduced for certain types of income and special allowances were granted to certain professionals. Despite knowing from the beginning of the year of the deadline for submitting the single tax return and paying the tax obligations related to the income obtained during 2020, it is still unknown how the tax reduction system will work this year, given that the conditions were not yet disclosed to the taxpayer.
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To prevent any potential disputes with the fiscal authorities regarding the justification of the VAT exemption for intra-Community supplies of goods, taxpayers should pay more attention to the intra-Community transactions performed, especially regarding the obtaining the necessary supporting documents.
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To prevent any issues that entrepreneurs and beneficiaries of large projects involving construction and installations may face in practice, the International Federation of Consulting Engineers (Fédération Internationale Des Ingénieurs-Conseils – hereinafter referred to as ”FIDIC”) has created a series of standard contracts to be used as international reference models. In relation to the FIDIC Red Book model (one of the most frequently used contract models for infrastructure projects in Romania), we emphasize that if the suppliers and beneficiaries of work enter into disputes about the value of the services provided which are not settled amicably but which instead are taken to an international arbitration procedure, there may be difficulties from a VAT perspective with respect to determining the moment when it is considered that the contracted works are completed by the contractor and accepted by the beneficiary.
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Deductibility of services expenses (and especially the deductibility of intra-group charges) continues to represent a hot topic during tax inspections. Services expenses have implications at the level of the corporate income tax as well as the withholding tax (e.g. undocumented artificial services, case in which the provisions of the double tax treaties cannot be applied and a withholding tax rate of 16% is applicable or even 50%, if there are not instruments for exchanging information with the service provider’s state of residence) but also from the VAT perspective (the services are not related to taxable operations and the VAT is non-deductible). It is also very important to note that criminal implications may arise in cases of tax evasion.
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There are three pillars of NAFA s digitization strategy, three interdependent tools which will help the Tax Office to strengthen the collection, by seeing in almost real time the receipts and identify the anomalies: xash registers, SAF-T and e-invoicing. In Romania, the tax administration has been working for some time on the implementation and connection of electronic cash registers, which would allow real-time reporting to the tax authorities pieces of information on sales. After several successive postponements of the application deadlines, NAFA aims to connect until November 30, 2021 including the electronic fiscal cash registers owned by small and medium operators, not only the large taxpayers. Subsequently, the connection will be made at the time of taxation. After the SAF-T s implementation, a pilot project is announced for this summer, and the e-invoice, announced for early 2022, NAFA will be able to put together the information reported by taxpayers and cross-reference the information. In this way, NAFA will be able to detected in real time the fraud and to act to stop it, actions that will increase the level of compliance. In the short term, I estimate that the transition to SAF-T will generate complexity for the business environment. Companies should already think about the technical aspects related to the adaptation of the IT solutions used to provide the requested data, but also the way they will communicate them to ANAF. Firms should also review internally how they identify their transactions from a tax point of view in order to detect possible errors in the application of tax treatment, which would obviously be desirable to correct before reporting. At the same time, in the medium and long term, SAF-T should facilitate the fiscal control procedure, both for NAFA and for taxpayers.
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This article highlights the ways of using business intelligence tools in the field of transfer pricing, but also some advantages and aspects that must be taken into account in using such tools.
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This article sets out relevant aspects of the private creditor test, as developed in the case law of the Court of Justice of the European Union, as well as various cases in which it was implemented in national law, with examples of this principle applied in Romanian judicial practice.
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In the light of recent case law of the High Court of Cassation and Justice, the extremely broad limits of the tax authority’s assessment of the reclassification of a legal transaction and the adjustment of its tax effects are being reconsolidated. The article aims to analyze a recently resolved case in which a sale-purchase transaction has been reclassified as dividend distribution.
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Almost never made public, the legislative measures took during the COVID-19 pandemic, which changed the course of tax prescriptions, have significant implications on taxpayers, who benefit from the effects of the limitation. Thus, the tax limitation period, having the nature of a limitation period, releases taxpayers from fiscal responsibility. Following the measures we will discuss in this article, the release does not occur after 5 years anymore, but after almost 7 years. Just how justified the measures were, you will find out below.
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The fiscal body performs risk analyzes, based on which it will select thetaxpayers to be audited.
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Testamentary execution is a provision contained in the will by which the testator or a third party appointed by the testator, designates one or more persons giving them the necessary power of attorney for the execution of his testamentary dispositions.
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The clauses are stipulations, the result of the concordant wills of the parties, contained in a contract (validly concluded). In relation to the wills of the parties or the law, we distinguish between: negotiated contracts, accession contracts and binding contracts. These often include “negotiated clauses”, “standard clauses” or even “abusive clauses”. The study briefly analyzes the contractual clauses and their distinct legal regime, on two levels: - contractual clauses in the provisions of the Civil Code (essential and secondary clauses; extrinsic and intrinsic clauses, negotiated and imposed clauses), and - unfair terms in consumer law (notion and elements of unfair terms; scope; sanction and proof of unfair terms). The paper is structured in three sections: “Content of the contract: contractual clauses”, “Contractual clauses in the provisions of the Civil Code” and “Abusive clauses ‒ specific to consumer law”.
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The private property right attestation certificate is an act by which certain companies justify the existence of ownership right over certain land areas. The nullity (illegality ) of a private property right attestation certificate may lead a company to the impossibility of proving the ownership of a land, thus being able to generate a series of negative legal consequences (eg loss of a lawsuit, termination of pre-contractual negotiations, blocking a transaction etc). This material briefly presents: (i) the legal framework applicable to certificates, (ii) the opinions expressed by the Romanian Constitutional Court on the legal framework underlying the issuance of certificates, (iii) the opinions expressed by the High Court of Cassation and Justice on the related legal framework (iv) the conditions of validity of the issue of certificates and their content from the perspective of the courts ‒ Part I.
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As a result of the work carried out by the Constitutional Court, three decisions 0(referral/exception of unconstitutionality admitted) were published in October on: Decision of the Parliament of Romania No 5/2020 for the approval of the state of alert and the measures established by GD No 394/2020 on the state of alert and the measures to be applied during the state of alert to prevent and combat the effects of the COVID-19 pandemic; Law No. 360/2002 on the status of the police officer, in the wording prior to the amendment by GEO no. 53/2018 for the amendment and completion of Law no. 360/2002; GEO no. 78/2016 for the organization and functioning of the Directorate for the Investigation of Organized Crime and Terrorism, as well as for the amendment and completion of some normative acts.
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