The Order of the President of ANAF no.417 amending and supplementing the OPANAF no.675/2018 on the approval of the indirect methods of determining income and the procedure for their application was published in the Official Gazette (Part I) no.292 of 7 April 2023.
In the document’s approval report it is mentioned that, according to the Tax Procedure Code, in its existing form until the date of entry into force of the EMERGENCY ORDINANCE no.188/2022 amending and supplementing Law no. 207/2015 on the Tax Procedure Code and amending EMERGENCY ORDINANCE no. 74/2013 on some measures to improve and reorganize the activity of ANAF, as well as amending and supplementing some normative acts, in order to verify the personal tax situation of the individual, the tax authority shall perform the following preliminary activities:
- risk analysis to establish the risk of non-compliance in taxable income reporting for a group of individuals or for individual cases;
- selection on the basis of the risk analysis of the individuals who will be subject to verification of their personal tax situation.
According to the provisions of Article I point 31 of the EMERGENCY ORDINANCE No. 188/2022, Article 138 paragraph (2) has been amended in order to introduce a new preliminary activity, namely the notification, in writing, of the individuals identified with tax risk as a result of the risk analysis, before the selection for verification of the personal tax situation.
According to Article I point 33 of the EMERGENCY ORDINANCE No. 188/2022 , a new Article 140^1 has been inserted after Article 140, which provides for provisions on the notification of compliance issued by the central tax authority in case of verification of personal tax situation.
We remind that, by the OPANAF no.2778/2020 on the competence of exercising the verification of the personal tax situation and its preliminary activities, in application of the provisions of article 138 paragraph (3) of the Tax Procedure Code, the activities preliminary to the verification of the personal tax situation, on the whole territory of the country, are exercised by the General Directorate of Income Control for Individuals.
According to OPANAF no. 675/2018, there are provisions on the preliminary activities of risk analysis and selection of individuals for verification of personal tax situation, activities performed by the structure at the level of the central office of ANAF, and it is necessary to introduce provisions on the new preliminary activity of notification of individuals identified with tax risk before selection.
In view of the above, the provisions on pre-notification activity are set out in a separate section of this procedure in the OpANAF417/2023.
This section includes the activities carried out in the notification procedure, details of the persons subject to notification, those exempted from notification, and the model notification of compliance with the legislative changes.
Compliance notification:
The notification of compliance of individuals is made by the competent tax authority prior to selection for verification of personal tax status.
The notification of compliance is communicated to the individual in accordance with the provisions of Article 47 of the Tax Procedure Code.
The subject of the notification of compliance:
a) natural persons from the list of natural persons proposed for verification of personal tax situation according to Article 11 b);
b) natural persons for whom the risk analyses carried out in the cases referred to in Article 3 paragraph (2) letter a) establish a risk of non-compliance in the declaration of taxable income pursuant to Article 138 paragraph (2) letter a) of the Tax Procedure Code, proposed for verification of personal tax situation.
Exceptions to the compliance notification:
a) individuals proposed for verification of their personal tax situation as a result of the implementation of programmes/projects to increase tax compliance under which they have been notified of the risk of non-compliance in the declaration of taxable income and of the possibility of re-examining their tax situation and, where appropriate, filing or correcting tax returns;
b) individuals who are subject to a verification of their personal tax situation and for whom the verification has been extended to tax periods other than those included in the initial verification notice;
c) natural persons who are subject to a re-verification of their personal tax situation following a decision to resolve an appeal;
d) natural persons who have been subject to a documentary verification carried out by the tax authorities competent to carry out the verification of the personal tax situation, in the situation where, pursuant to Article 149 paragraph (2) of the Tax Procedure Code, in order to comply with the legal provisions, the measure to initiate a verification of the personal tax situation is ordered.
Within the compliance notification activity, the tax authority performs the following activities:
a) forward compliance notifications to the individuals proposed for verification of their personal tax situation;
b) use in the risk analysis the information from the tax returns submitted or corrected as a result of the compliance notification and reassess the risks of non-compliance in the declaration of taxable income according to Article 10;
c) for the situation referred to in Article 113 paragraph (1) letter a), update the list of individuals proposed for verification of personal tax situation.
The periodicity of the notification may be annual, quarterly or at the time of identification of the natural persons referred to in Article 113(1) letter (b).
The new Order of the President of ANAF also establishes:
- the compliance notification model provided for in Article 140^1 of the Tax Procedure Code, as well as the communication and storage of the notification. The notification model fully complies with the requirements of Article 140^1 of the Tax Procedure Code, in the sense that the individual will be notified of: ‣ the risk of non-compliance in declaring taxable income and the period in which this risk is present; ‣ the possibility of reviewing the tax situation and, if necessary, of filing or correcting tax returns for this period;
- amendment of Article 13 of the Procedure for the application of indirect methods approved by OPANAF no. 675/2018 in order to correlate the preliminary stage of the selection of individuals for the verification of their personal tax situation with the amendments made to these stages by EMERGENCY ORDINANCE no. 188/2022.
Legal basis:
- Tax Procedure Code (approved by Law no.207/2015, published in the Official Gazette no.547 of 23.07.2015), as amended and supplemented;
- ANAF Order 417/2023 amending and supplementing the Order of the President of the National Tax Administration Agency no. 675/2018 on the approval of indirect methods of determining income and the procedure for their application;
- ANAF Order 675/2018 on the approval of the indirect methods of determining income and the procedure for their application;
- EMERGENCY ORDINANCE 188/2022 for amending and supplementing Law no. 207/2015 on the Tax Procedure Code and for amending Government Emergency Ordinance no. 74/2013 on some measures to improve and reorganize the activity of the National Tax Administration Agency, as well as for amending and supplementing some normative acts.