Tax inspection reports at a company whose activity is “Road and highway construction works”

S.C. X S.R.L. has as object of activity “Road and highway construction works”, CAEN code 4211.

Period covered: 01.01.2016 – 31.12.2022.

The main findings of the tax inspection authorities  were:

From the verification carried out, the tax inspection authorities  found that the company erroneously deducted expenses for the purchase of goods and services not related to its economic activity. At the same time, the company recorded in its accounting records expenses with interest, insurance, exchange rate differences related to the purchase under financial leasing system of a motorized road vehicle with a maximum authorized total mass not exceeding 3,500 kg and not having more than 9 passenger seats including the driver’s seat, brand X, without proving its exclusive use for the company’s activity.

Also, the tax inspection authorities  found that the audited company did not tax the reserves from the revaluation of fixed assets at the same time as the deduction of tax depreciation, as a result they established similar items of income for the 2021 tax year in the amount of x lei.

Also, the tax inspection authorities  found that the audited company did not tax the reserves from the revaluation of fixed assets at the same time as the deduction of tax depreciation, as a result they established similar items of income for the 2021 tax year in the amount of x lei.

The audited company recorded in its accounting records purchases of services of “drilling, shooting and use of explosives, drilling, dislocation and excavation” from various legal entities, services specific to mining activity, without holding a mining license and without re-invoicing the consideration for these services. They were made available to C S.A. free of charge.

S.C. X S.R.L., although it recorded in its accounts as a mining product ‘uncovered material’, which in fact represents the mining product ‘diorite’, for which it holds a mining licence for processing and marketing, did not calculate and declare to the tax authorities the mining royalty due.

In conclusion, as a result of the tax inspection, additional obligations were established in the total amount of x lei, representing:

– x lei VAT;

– x lei corporate income tax;

– x lei mining royalty

Source: ANAF