Evaluating inspectors according to fines imposed – ANAF specifications

According to a recent press release of the National Tax Administration Agency (ANAF), considering the information that appeared recently in the media, regarding the fact that the inspectors of the National Tax Administration Agency (ANAF) have a “plan of additional amounts”, which they set to the companies under control, and those who do not comply receive low marks, ANAF representatives specify the following:

According to the provisions of Article 113 paragraph (2) of Law no.207/2015 on the Tax Procedure Code with subsequent amendments and additions, for the purpose of carrying out the tax inspection, the tax inspection body shall proceed to establish the tax base, the differences due in addition or in deficit, as the case may be, compared to the main tax liability declared by the taxpayer/payer and/or established, as the case may be, by the tax body, these representing the additional amounts established as a result of a tax inspection action.

The individual evaluation of tax inspectors is carried out by the territorial structures in which they carry out their activity, territorial structures that have not been communicated targets for the amounts established additionally by the inspectors as a result of the tax controls carried out.

The press release states that currently, the ANAF’s strategy in terms of tax control activity is focused around two principles that govern any modern tax administration, namely:

  • Encouraging the increase of voluntary compliance of taxpayers in their declarations;
  • preventing and combating tax evasion.

In order to harmonize tax control procedures with international trends, according to which the tax control activity becomes the last resort of the tax administration to achieve compliance with the declaration, ANAF has adopted a compliant and progressive approach to tax control forms and actions.

In this regard, in order to increase taxpayers’ compliance with the declaration, ANAF, through the tax control structures, is currently carrying out two types of actions that involve remote interaction with the taxpayer:

  • issuing the Notice of Compliance, which is a document by which the tax inspection body transmits to taxpayers/payers presumed to be selected for tax inspection the tax risks identified, in order to re-examine the tax situation and fulfil the tax obligations according to the legal provisions, or to clarify the tax risks notified, as appropriate.
  • carrying out documentary verification actions, which consist of carrying out a consistency analysis of the taxpayer’s/payer’s tax situation, based on the documents in the taxpayer’s/payer’s tax file, as well as on any information and documents submitted by third parties or held by the tax authority, which are relevant for determining the tax situation.

Taxpayers with high tax risk are subject to tax control actions as follows:

  • tax inspection takes place in the case of taxpayers who, following the Notice of Compliance, do not correct and clarify the tax risks for which they were notified;
  • anti-fraud control, in the case of taxpayers for whom there are indications of tax evasion.