TAX INSPECTION FOR NATURAL PERSONS

RIGHTS AND OBLIGATIONS OF NATURAL PERSONS DURING A TAX INSPECTION

Tax inspections for companies are very common. Nevertheless, the tax authorities can also verify the revenues obtained by natural persons at any time. Prior to a tax inspection, the tax authorities must notify individuals of their rights and obligations in such a situation.
Thus, Order no. 544/2014 of the Minister of Finance approved the Charter of rights and obligations of the individual subject to a tax inspection. This Charter’s objective is to inform individuals about their rights and obligations in relation with the tax authorities. Hereinafter you may find the most important rights and obligations of individuals, so that you are prepared in case the tax authorities decide to “pay you a visit”.

TAX INSPECTION NOTICE

At least 15 days prior to the inspection, the tax authority must send to the concerned person a written notice regarding the control. Below you may find what the notice should comprise (accompanied by our observations):

1. The legal grounds of the inspection;


2. The inspection date of commencement (as regards the duration of the inspection, it can be of 6 months at most and 12 months if the authorities must
   obtain information from abroad);


3. The period subject to the inspection;


4. The possibility to request the adjournment of the inspection (only once, on justified grounds);


5. The place where the inspection shall take place and the person who shall perform it;


6. The information and written documents that the taxpayer must provide (within 60 days from the notice reception; this delay may be extended by an additional 30-days period, only once, on justified grounds).The notice shall also be accompanied by the Charter of rights and obligations of the
   individual subject to a tax inspection.

RIGHTS OF INSPECTION INDIVIDUALS SUBJECT TO A TAX

During the inspection, the individual mainly has the following rights:

• To be verified only for taxes and fees within the limitation period;


• To be assisted by a specialist (economic or legal) and to name persons who can provide information to the tax authority;


• To request the change of the premises where the inspection shall take place.

Normally, the inspection takes place at the tax authority’s headquarters, but individuals may request in writing that the inspection be performed either at their domicile (if they are unable to travel to the tax authority’s headquarters), or at the headquarters of the person providing them with specialized assistance.

• The individual’s husband/wife or parents have the right to refuse to provide information or to submit documents to the tax authority;

Lawyers, notaries, bailiffs also have the right to refuse to provide information that they have received from the taxpayer during their activity.

• To be informed about the inspection results and about the tax authority’s findings and to formulate his point of view within 3 days from the completion of the inspection;


• To appeal the taxation decision issued by the tax authority following the inspection, within 30 days.

OBLIGATIONS INSPECTION OF INDIVIDUALS SUBJECT TO A TAX

Persons subject to tax inspections mainly have the following obligations:

1. To be present during the inspection and to provide the information and documents required by the tax authority;


2. To allow the tax authority to perform an on-site inquiry and to grant access to the areas considered;


3. To apply the measures taken by the tax authority within the delay indicated thereby;


4. To pay tax differences established during the tax inspection, as well as the corresponding penalties and interest.