Tax inspection statements to a natural person 2

P.F.A. X2, has as object of activity “Wholesale of live animals”, CAEN code 4623.

The period checked was:

-18.03.2021 – 28.02.2023  self-employment tax;

– 18.03.2021 – 28.02.2023 VAT;

–  18.03.2021 – 28.02.2023 social contributions.

The main findings of the tax inspection authorities  were:

The tax inspection authorities  found that documents representing transactions with animals (sheep) from individuals domiciled in various regions of the country, persons registered in the Special Register of Farmers, were recorded in the accounting records of P.F.A. X.

During the period under control, the economic operator made supplies of goods – “live animals” to partners registered for VAT purposes, carrying out operations subject to the reduced VAT rate of 9%, as provided for in Article 291, para. (2) of Law No. 227/2015 on the Tax Code, as amended.

It was also found that the provisions on the correct and complete recording of the operations carried out in the course of the economic activity were not respected, which led to the conclusion of the tax inspection authorities  that the records identified were not based on real transactions, as they were made in order to create a situation of apparent legality which artificially determined a more favourable tax situation both in terms of the taxation of the income realised and the determination of the VAT due to the state budget.

Following the tax inspection carried out at P.F.A. X, deficiencies were also found relating to:

– failure to comply with the General Rules on the simple accounting and financial documents, which expressly mention the main elements which supporting documents must contain, the entry of data, the procedure for correcting documents and the prohibition of amendments and corrections to documents on the basis of which cash is received, issued or justified;

– errors in the recording of the supporting document, expenditure recorded twice on the same sales ledger, recording of expenditure on invoices which do not contain all the information required by law;

– failure to comply with the provisions concerning special limitations on the right to deduct expenses relating to vehicles owned or used by the taxable person, where the vehicles are not used exclusively for business purposes.

In conclusion, as a result of the tax inspection, additional tax liabilities in the total amount of x were established, as follows:

– Tax on income from self-employment in the amount of x lei;

– Value added tax in the amount of x lei;

– Social security contributions in the amount of x lei.

 

 

Source: ANAF