Results of a tax inspection of a company whose activity is “Manufacture of instruments and devices for measuring, checking, testing, control, navigation”

S.C. X S.A. has as its object of activity “Manufacture of instruments and devices for measuring, checking, testing, control, navigation”, CAEN code 2651.

Period audited:

  • 01.2017 – 30.06.2022 for VAT,
  • 01.2017 – 31.12.2022 for corporate income tax.

The main results of the tax inspection authorities  were:

  • The audited company did not submit supporting documents on the manner of operation in the accounting records of the results of the generated inventories of the assets and liabilities for the period audited, respectively, with regard to making adjustments to the VAT initially deducted, related to inventory losses;
  • The audited company derecognized/decreased stocks of finished goods, semi-finished goods, raw materials, products held by third parties and decreased the production in progress, through various accounting notes for which it did not submit evidence of the type/nature of the decreased stocks, respectively, the legality of the accounting entries was not justified and no documents were submitted to show the nature of the economic transactions;
  • Company X S.A. has made intra-Community deliveries of goods in the total amount of x lei, failing to submit documents/documents proving that the goods have been transported from Romania and have been received in the country of destination in the European Union;
  • As at 31.12.2020, the audited company has recorded the amount of x lei, representing the unappropriated profit or uncovered loss for 2017, without providing documents and information on the composition of this amount and the reasons why this amount was not included in the amending return code 101 on corporate income tax for 2017, filed in 2023;
  • The audited company has recorded in its books, through various accounting notes, reversals of income, for which no documents and information have been submitted regarding the composition of the amounts in question nor the reasons for which they were made;
  • The audited company has recorded on 30.06.2020 expenses in the amount of x lei, with the explanation “depreciation adjustment according to the Valuation Report as at 31.12.2019”, without factual and legal justification of the deductibility of these expenses for the calculation of corporate income tax, respectively without submitting the supporting documents that were the basis for this recording.

In conclusion, additional tax liabilities totaling x lei were established, of which:

  • VAT x lei;
  • Income tax x lei.

The tax loss was also reduced by the amount of x lei.

Source: ANAF