TAX RECORD: NEW RULES

TAX RECORD: NEW RULES

For the purpose of preventing and combatting tax evasion, the State created the tax record, which is a database containing information regarding the taxpayers’ fiscal status. By this database, the tax authority checks the taxpayers’ compliance with tax, accounting and financial rules; taxpayers are registered in the criminal record if they committed offences sanctioned by the tax, accounting or customs legislation. As of September 3rd, 2015, new provisions regarding tax record are applicable following the entry into force of Government Ordinance no. 39/2015, which repeals Ordinance no. 75/2001.

CONVICTIONS REGISTERED IN THE TAX RECORD

First of all, unlike the previous legislation, Ordinance no. 39/2015 provides that data regarding unincorporated entities, which were not mentioned by Ordinance no. 75/2001, will also be listed in the tax record.

Important changes regard offences registered in the tax record. The former Ordinance no. 75/2001 provided the registration in the tax record of offences sanctioned by fiscal, financial, customs legislation, of offences related to financial discipline, as well as joint and several liability with a debtor subject to an insolvency proceeding.

The new Ordinance broadened the scope of the sanctions registered in the tax record and expressly provides that joint and several liability with a debtor (and not only a debtor subject to an insolvency proceeding), established under the Code of Fiscal Procedure, will be registered in the tax record. Consequently, other cases of joint and several liability with a debtor will also be registered in the tax record, such
as:

• Liability of unincorporated shareholders, including members of family companies, for tax obligations due thereby, jointly and severally with the legal representatives that caused, in bad faith, failure to declare and/or pay such tax obligations when due;


• Liability of third-party garnishees that did not pay, after the debt became due, the amount withheld and due to the tax authority, within the limits of the unpaid amounts;


• Liability of the taxpayer’s legal representative that declares to the bank, in bad faith, that the taxpayer whose accounts were garnished has no other financial availabilities, in order to avoid the impossibility to pay wages (in accordance with article 149 paragraph 12 letter a) of the Fiscal Procedure Code, after their accounts are garnished, debtors can no longer make payments, unless the debtor or its legal representative declares that the debtor has no other financial availabilities and that the amounts existing in the accounts are necessary for wage payment).

DELIVERY OF THE TAX RECORD CERTIFICATE

As regards the delivery of the tax record certificate, it is now provided that the application for such certificate, submitted by natural or legal persons, will be addressed competent tax authority, irrespective of the taxpayer’s tax residence. Until now, such certificate could only be requested to the tax authority in whose jurisdiction the taxpayer’s residence was located.

The tax record certificate is valid for 30 days and can be issued on paper or electronically, depending on the applicant’s choice.

The former Ordinance provided a tax of 20 Lei for the delivery of the tax record certificate. The present Ordinance includes no provision regarding such tax, but this aspect will most probably be regulated by the Order setting forth the procedure for data registration in the tax record, as well as for the delivery of the certificate. The said order will be passed by the National Agency for Tax Administration within 30 days from the entry into force of Ordinance no. 39/2015.