Last week, the Government approved the fiscal amnesty proposed by the Ministry of Finance for interest, penalties and other accessories due by companies that will pay the main arrears until December 15, 2020, a measure that will support the business environment hit by the COVID-19 crisis and will had a positive effect on budget revenues this year.
Thus, the amnesty approval envisages the collection of outstanding budget obligations on March 31, 2020, as well as budgetary obligations with payment deadlines between April 1, 2020 and December 15, 2020, so that, on the one hand, the cancellation of accessories supports taxpayers who can use the liquidity they have for the continuation of the activity directly or indirectly affected by the Covid – 19 crisis and allows the cleaning of the debt balance sheets, and on the other hand, an increase of the revenues to the general consolidated budget is ensured. MFP estimates a positive budgetary impact of up to 2 billion lei.
It is important to mention that the fiscal facilities target all taxpayers who have outstanding debts as of March 31, 2020 (individuals, legal entities, individuals carrying out economic activities or free professions, entities without legal personality, public institutions, etc.).
Thus, the draft Emergency Ordinance (OUG) elaborated by the Ministry of Public Finance (MFP) regulates 4 types of fiscal facilities and covers all the situations that taxpayers may face:
- Measure 1 – Cancellation of interest, penalties and all accessories related to the main budgetary obligations, outstanding on March 31, 2020 inclusive, in the case of taxpayers who at this date have in balance both ancillary budgetary obligations and main budgetary obligations.
In this case, in order to benefit from the measure of cancellation of accessories, taxpayers must pay the main outstanding budget obligations on March 31, 2020, pay the current obligations (those born after March 31, 2020), submit all tax returns and submit the request to cancel the accessories until December 15, 2020
In other words, at the date of submitting the application for cancellation of the accessories, the taxpayer must no longer have any debt, except for the accessories that are canceled.
- Measure 2 – Cancellation of interest, penalties and all accessories related to the main budgetary obligations, additionally declared by the debtor by amending declaration, with a maturity prior to March 31, 2020, inclusive
In this situation, taxpayers who consider that there are errors in the amounts initially declared can submit an amending declaration declaring the additional obligations and can benefit from the cancellation of the accessories related to the additionally declared obligations if they pay these obligations, as well as current obligations (those born after March 31 2020), submit all tax returns and, of course, submit the application for cancellation of accessories until December 15, 2020
- Measure 3 – Cancellation of interest, penalties and all accessories related to the main budgetary obligations with maturities prior to March 31, 2020, including if at this date the taxpayer has in balance only accessories, and the main budgetary obligations have been extinguished.
In this case, in order to benefit from the measure of cancellation of accessories, taxpayers must pay the current obligations (those born after March 31, 2020), submit all tax returns and submit the request for cancellation of accessories until December 15, 2020
- Measure 4 – Cancellation of interest, penalties and all accessories related to the main budgetary obligations with maturities prior to March 31, 2020 inclusive, established by tax decision issued as a result of tax inspection or verification of personal tax situation, which is ongoing at the date of entry into force of the emergency ordinance.
In this situation, taxpayers who at the date of entry into force of the ordinance have an ongoing tax inspection or verification of personal tax situation may benefit from the cancellation of accessories related to the obligations additionally established by the control body if they pay these obligations by the payment deadline. the taxation decision and if they submit the request for cancellation of the accessories within 90 days from the date of communication of the decision, regardless of whether this control was completed by December 15, 2020 or later.
These fiscal facilities can also be applied by the local public administration authorities, optionally, if the local council establishes, by decision, the application of these provisions, as well as the applicable procedure.
The fiscal facilities are also applied by other public authorities or institutions that manage budgetary obligations, in the sense that these entities also cancel the accessories for the budgetary obligations they manage, if the conditions provided by the emergency ordinance are met..
Taxpayers can notify the fiscal body of the intention to benefit from the cancellation of the accessories. In this case, for the accessories that may form the object of cancellation, a special administration regime is established. For debtors who have not notified the fiscal body in order to benefit from the cancellation of accessories, interest, penalties and all accessories that can be canceled and which were paid after the date of entry into force of the emergency ordinance are refunded, upon request, according to the Fiscal Procedure Code.
In the case of taxpayers for whom seizures were instituted on the date of entry into force of the emergency ordinance, in order to grant the possibility to benefit from the cancellation of accessories, the taxpayer’s possibility to make payments from amounts not made available as a result of seizure is regulated.
Therefore, if he meets the conditions, a taxpayer can benefit from the cancellation of accessories in any of the tax facilities mentioned above.
Thus, a taxpayer can cumulate all the facilities if, until the date of submitting the request for cancellation of the accessories, inclusive, he meets the conditions provided by the emergency ordinance.
Taxpayers who, at the date of entry into force of the GEO, benefit from payment rescheduling can benefit from fiscal facilities if they meet the conditions imposed by the ordinance, on the one hand, and on the other hand, they also want to maintain payment rescheduling, or if they complete the rescheduling until December 15, 2020, the text of the ordinance distinguishing between these situations.