Tax inspection findings at a company whose activity is the cultivation of cereals (excluding rice), leguminous plants and oil seed producing plants

S.C. X S.R.L., whose business activity is “Growing of cereals (excluding rice), leguminous plants and oil seed crops”, CAEN code 111.

Period checked:

01.07.2022 – 30.06.2023 Corporate tax.

– 14.10.2020 31.08.2023 VAT

– 29.09.2020 30.06.2022 Tax on microenterprise income

– 29.09.2020 – 31.08.2023 Tax on dividend income

29.09.2020 – 31.08.2023 Tax on income from other sources

The main findings of the tax inspection bodies were:

With regard to corporate income tax, the tax inspection bodies found the following deficiencies at S.C. X S.R.L.:

– deducted from the corporate income tax due sponsorships granted within the legal limit, but did not consider these expenses non-deductible for tax purposes when determining corporate income tax;

– recorded expenses with pro forma invoices as supporting documents and without submitting invoices;

– recorded expenses representing purchases of products for household and personal use;

– did not limit to 50% the operating and maintenance expenses of a car for which no vehicle log sheets were drawn up and which was not used exclusively for the purpose of business activity for its operation and maintenance;

– has recorded expenses on the basis of a supporting document an invoice issued in the previous tax year;

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

– for the first two quarters of 2023, he calculated the income tax, but did not declare it to the tax authorities by means of a tax declaration – code 100:

– did not limit to 50% the deductible VAT related to the purchase of a vehicle which was not used exclusively for the purpose of the economic activity for the operation 5.1 maintenance thereof;

– deducted VAT on the basis of supporting documents such as false invoices or invoices which were not physically presented at the tax inspection, purchased land for which he deducted VAT;

Also, following the verification carried out, the tax inspection authorities found that S.C. X S.R.L.:

– regarding the microenterprise income tax, year 2021, did not calculate and record, the related microenterprise income tax;

– with regard to the tax on income from dividends, it has distributed and paid dividends without declaring and paying the related dividend tax;

– regarding the tax on income from other sources, in March 2021, recorded payments through the bank to Association X, without legal and documentary justification, being assimilated to income from other sources, in conclusion, as a result of the tax inspection carried out, the tax inspection bodies additionally established the total amount of x lei, of which:

– Income tax x lei,

– VAT x lei;

– Tax on microenterprise income x lei,

– Tax on income from dividends x lei;

– Tax on income from other sources x lei.

 

Source: ANAF