Tax inspection findings at a company whose object of activity is “Retail trade in non-specialized stores, with sale predominantly of food, beverages and tobacco”

S.C. X S.R.L., has as object of activity “Retail sale in non-specialized stores, with sale predominantly of food products, beverages and tobacco”, CAEN code 4711.

Period checked:

– 01.01.2019 – 30.06.2023 corporate tax;

– 01.01.2017 – 31.08.2023 value added tax.

The main findings of the tax inspection authorities  were:

– in 2019, recorded non-deductible expenses higher than those declared by the Corporate Income Tax Return – code 101;

– in 2020, it acquired fixed assets for which it erroneously deducted an amount from the corporate income tax, as it did not benefit from the corporate income tax exemption, as they did not fall into the category of assets for refurbishment;

– in 2021, it did not consider as non-deductible for tax purposes when determining taxable profit, the depreciation expenses of a car brand X which exceeded 1,500 lel per month;

– in the years 2021- 2022, recorded in account 658.1, amounts representing fines and penalties due to the state budget which were not considered non-deductible for tax purposes when determining taxable profit;

– recorded a shortage in the management of goods, for which reason the deducted VAT on the goods shortage was adjusted, and did not limit to 50% the deductible VAT on invoices representing leasing instalments for vehicles that were not used exclusively for the purpose of economic activity.

Source: ANAF