Individual Enterprise X has as its object of activity “Consulting in Information Technology,” CAEN code 6202.
The audited period was: 01.01.2021 – 31.12.2022.
The main findings of the tax inspection authorities were:
According to the provisions of Article 121^1 of Law no. 207/2015 regarding the Fiscal Procedure Code, with subsequent amendments and completions, compliance notification no. –/09.11.2023 was issued for the purpose of re-evaluating the tax situation and, if necessary, for the submission or correction of tax declarations, as a result of correctly determining the classification of the taxpayer’s activity in the field of information technology.
The aforementioned notification was sent by the tax authority via electronic means of remote communication (SPV) on 10.11.2023.
The audited taxpayer did not respond to the request for information, and as of 07.03.2024, the document verification action was initiated.
Following the request for documents and information, the taxpayer sent an email with a letter clarifying the actual activities carried out, indicating that, in addition to consulting services, predominantly software development services, website development, and mobile application development were performed.
According to the classification of activities in the national economy (CAEN), these activities fall under CAEN code 6201 – “Custom Software Development Activities,” a code not found in the nomenclature of independent activities, for which the net income can be determined based on annual income norms approved for 2021 and 2022.
In 2021 and 2022, the annual net income was determined by the taxpayer based on the annual income norm for consulting in information technology, CAEN code 6202.
Following the analysis of the documents and justifying evidence submitted, the tax inspection authorities found that the taxpayer’s activity involved the creation and implementation of software systems and websites, which was also evident from the invoices issued to clients. Thus, the tax inspection authorities proceeded to determine the annual net income and recalculate the income tax for the fiscal years 2021 and 2022, using the real system based on accounting records.
In 2021, according to the invoices issued and recorded in the cash receipt and payment journal, as well as in the tax record, an annual net income of x lei resulted, and x lei in 2022.
Following the modification of the taxable base, additional differences in the taxable annual net income and the corresponding income tax were established in a total amount of x lei.
Source: ANAF