S.C. X S.R.L. is engaged in “Manufacture of plastics in primary forms”, CAEN code 2016.
Period checked:
– 01.01.2016-31.12.2021 Profit tax;
– 01.01.2017-31.12.2021 VAT.
The main findings of the tax inspection authorities were:
– unjustified deduction of expenses in the total amount of x lei and value added tax in the total amount of x lei, based on invoices for the provision of services issued by companies in the group of which it is a member, while the company did not justify the fact that the services in question were actually performed for the benefit of its taxable operations, most of which were in fact services related to the needs of the shareholder;
– The analysis of the transfer pricing file revealed shortcomings in the sale prices of waste with the affiliated company X in Member State X, and the tax inspection authorities adjusted the income from the sale of waste by applying the average price set by the company at the median level, and additional income was established in the total amount of x lei;
– unjustified deduction of expenses for depreciation of materials, products, receivables and assets in the total amount of x lei, although no supporting documents were submitted;
– the audited company registered as operating expenses, in account 654 “Losses from receivables”, the total amount of x lei, considered by the company erroneously deductible in the calculation of taxable profit although the legal provisions were not respected;
– registered as operating expenses the amount of RON x, representing provisions, erroneously considered deductible for tax purposes when calculating taxable profit, as they did not meet the legal conditions for deductibility;
– the company has unjustifiably applied the income tax exemption related to the profit reinvested in fixed assets, in the total amount of x lei, being erroneously applied the tax facitities provided for in Article 22 paragraph (1) of Law no. 227/2015 on the Tax Code with subsequent amendments and additions;
– unjustified deduction of expenses for the rental of premises and related utilities in the total amount of x lei, as well as the related value added tax in the amount of x lei, as the company did not justify the use of the premises for the economic activity;
– the company unjustifiably deducted expenses for consultancy services in the amount of MDL x, which were incurred by the provider for the benefit of another entity;
– the company unjustifiably considered as deductible in the calculation of taxable profit, expenses in the total amount of x lei representing late payment penalties/fees charged by state authorities; the company unjustifiably deducted value added tax in the total amount of x lei relating to group audit services which were not provided for the benefit of S.C. X S.R.L., as they were carried out at the request of another company.
Thus, an additional amount of x lei was established, representing:
– x lei Income tax;
– x tei VAT.
Source: ANAF