S.C. X S.A., has as object of activity “Distribution of gaseous fuels, through pipelines”, CAEN code 3522.
Period audited: 01.05.2018-31.12.2021.
The main report of the tax inspection authorities were:
– non-admission of expenses for consultancy services for deduction;
– the non-admissibility for deduction of the fixed fee/remuneration paid, as the tax inspection authorities found that the fixed fee was invoiced on the basis of a contract which does not meet the conditions of a subscription contract for the provision of services;
– the audited company did not pay for tourist services, but made payments to employees without having invoices, documents, contracts concluded in its own name to justify the amounts recorded as expenses;
– disallowance of expenses for audit services rendered for the benefit of the group; non-deductible expenses related to unjustified provision deductions;
– disallowance of expenses for X services for which the company has not proved that they were provided for the purposes of its own activity;
– late declaration of adjusted VAT;
– the tax inspection authorities established additional VAT for services for which the company did not justify the purpose in terms of the activity carried out nor the amount of the invoiced amounts. Thus, VAT in the total amount of x lei related to invoices issued in the period 01.01.2018 – 28.02.2019 by S.C. Y S.R.L. represents non-deductible VAT, not being related to services rendered for the benefit of the audited company;
– the company has not fulfilled the condition for VAT deductibility relating to the holding of an invoice for services rendered for its benefit. The audited company did not prove the objectivity of the services for its own activity, nor the purpose for which these services were invoiced to it by the auditing company and not to Group Y Romania, the tax inspection authorities finding that it could not demonstrate that the services were performed for the purpose of its economic activity.
It did not justify the purpose of the services that were invoiced to it, as a result, VAT in the amount of x lei related to the audit services rendered for the benefit of the group was not deductible.
The audited company was obliged to calculate, withhold and declare the contributions due for payments made to employees for the purpose of purchasing rest and treatment tickets, representing salary benefits.
The tax inspection authorities established the counter-valuation of the rest and treatment tickets paid by the company on the basis of invoices issued in the name of the employee, as an advantage of a salary nature for which it had the obligation to calculate, declare and pay tax on income from salaries and related social contributions.
Source: ANAF