Tax inspection reports on a company whose activity is “Development, real estate promotion”

S.C. X S.R.L. has as object of activity “Development, real estate promotion”, code CAEN 4110.

Verified period: 01.07.2022 – 31.12.2022 Income tax.

The main observations of the tax inspection bodies were:

The verified company was a payer of income tax on micro-enterprises for the period 01.01.2022 – 30.06.2022, and from July 2022, following a land transaction, it becomes a payer of corporate income tax.

The tax inspection bodies found that at the end of the third quarter of 2022, the audited company realized tax loss in the total amount of x lei and paid corporate income tax in the amount of x lei, without declaring and owing corporate income tax for the third quarter of 2022.

For the period 01.07.2022 – 31.12.2022, S.C. X S.R.L. prepared and submitted the statement 101 “Income tax return”, in which it recorded a tax loss in the total amount of x lei and entered in line 49 “Income tax declared by form 100” the amount of x lei, thus unjustifiably recording a claim against the state budget in the same amount.

S.C. X S.R.L. did not previously declare the amount of x lei on form D 100, and in the absence of such declaration, the payment made appeared in the payer’s records as an undistributed payment, so that, following the submission of the annual declaration, the company recorded amounts to be refunded representing income tax, totaling x lei.

In addition, from the analysis of the documents submitted, the tax inspection authorities established the amount of x lei representing “income tax and prescribed VAT, commissions and fees granted without justification, as a non-deductible expense, not incurred for the purpose of carrying out the economic activity.

In view of the above-mentioned aspects, as a result of the tax inspection carried out at company X S.R.L., the tax loss in the reporting year 2022 was decreased by the amount of x lei, thus reaching from the tax loss declared by the company of x lei, to a tax loss in the total amount of x lei.

At the same time, the amount of MDL x recorded by the company as a receivable from the state budget was cancelled by establishing an additional debit to the source of corporate income tax in the same amount.

Source: ANAF