Inspection observations on a taxpayer whose object of activity is “Other recreational and amusement activities, not elsewhere classified.”

S.C. X S.R.L. has as its object of activity “Other recreational and amusement activities n.e.c.”, CAEN code 9329.

Period audited:

01.01.2023 – 31.12.2023: Tax on dividend income from individuals;

07.02.2019 – 30.06.2023: Tax on income from micro-enterprises;

01.01.2021 – 31.12.2023: Value Added Tax;

01.04.2022 – 01.10.2023: Social contributions;

01.04.2022 – 01.10.2023: Tax on income from wages and salaries and similar income;

01.01.2021 – 31.12.2023: Contributions for disabled persons not included in the scheme.

 

The main findings of the tax inspection authorities  were:

It was found that the audited company was obliged to register for VAT purposes as a result of exceeding the legal exemption ceiling, with a difference of x lei being established as VAT collected.

 

When checking the deductibility of VAT, it was found that the company erroneously deducted VAT in the total amount of x lei, of which:

  • X lei representing VAT related to purchases of goods for which the taxpayer did not submit documents justifying their use for the purpose of economic activity;
  • X lei representing VAT related to invoices for services rendered issued by S.C. A S.R.L., for which the company did not submit any supporting documents containing details of the services rendered;
  • RON X representing 50% of VAT deducted on the purchase of car parts and payment of leasing installments for a motorized road vehicle purchased by the company in December 2022, for which the company could not justify the exclusive use for the purpose of business activity.

 

For the periods when it had an average number of employees over 50 and did not fulfill the legal requirements, the audited company was obliged to calculate and declare payments from legal entities for unrecognized disabled persons, if it does not employ disabled persons, with additional payments from legal entities for unrecognized disabled persons in the amount of x l

In addition, the tax inspection authorities  proceeded to recalculate the gross wage income for each tax period based on the information on the persons who worked for S.C. X S.R.L. during the period under review, according to the statements of G S.R.L. and the information from REVISAL.

As at December 31, 2023, the audited company had a debit balance of account 461 “Sundry debtors” in the total amount of RON x, constituted by the recording of payments made to the sole shareholder from the bank availability account, for which no documents were submitted to justify that they were made for the purpose of economic activity, and additional tax on dividend income in the amount of RON x was calculated.

In conclusion, following the verification carried out at S.C. X S.R.L., the total amount of x lei was additionally established, representing:

 

  • X lei VAT;
  • X lei Payments for disabled persons;
  • X lei Tax on income from wages and salaries;
  • X lei Social contributions;
  • X lei Dividend tax for individuals.

Source: ANAF