Results of a tax inspection of a company that has as its object of activity “Construction of residential and non-residential buildings”

S.C. X S.R.L. has as its object of activity “Construction works of residential and non-residential buildings”, CAEN code 4120.

Verified period:

  • 10.2022 – 31.03.2024 for income tax purposes;
  • 07.2022 – 30.09.2022 for the tax on micro-enterprise income;
  • 07.2022 – 28.02.2023 for value added tax.

The main results of the tax inspection authorities were:

  • Additional corporate income tax amounting to x lei has been assessed as follows:

o non-compliance with the obligation to evidence and declare income tax for the fourth quarter of 2022;

o registration  of non-deductible protocol expenses for tax purposes;

o expenses for the full depreciation of a means of transportation above the legal limit;

o expenditure on consumables and the scrapping of fixed assets deemed not to have been acquired for business purposes;

o  income from the sale of a motor vehicle, without also registration  expenditure on assets disposed of;

o the registration of non-taxable income without supporting documents;

o tax deduction of reinvested profit on a property not purchased new.

  • Additional tax on microenterprises’ income was established, in the amount of x lei, as a result of the erroneous entry in the account “Suppliers debtors” of services rendered by S.C. Y S.R.L., as advances, thus decreasing the tax base by the amount of x lei.
  • Additional VAT in the amount of x lei was also established, as follows:

o deduction of VAT related to purchases for business purposes, for which the company did not present supporting documents regarding the use for business purposes;

o  the audited company did not take into account the 50% limit on the deductibility of expenses and VAT deducted for the purchase of a car, where the exclusive use for the purpose of the business was not demonstrated;

o the audited company evidenced ongoing investments, i.e. the modernization of buildings owned by the company, and unjustifiably deducted VAT on the basis of the purchase documents at the date of their realization;

o unjustified deduction of VAT in case of purchase of goods which were not intended to be used for taxable transactions.

Accordingly, following the tax inspection carried out, the amount of x lei was additionally established, representing:

  • x lei profit tax;
  • x lei tax on the income of micro-enterprises;
  • x lei value added tax.

Source: ANAF