S.C. X S.R.L. has as its object of activity “Wholesale trade of other machinery and equipment”, CAEN code 4669.
Period audited: 01.01.2018 – 31.12.2023.
The main results of the tax inspection authorities were:
The tax inspection authorities found that, through a mechanism of contracts and additional deeds concluded between affiliated companies of Group X, there were numerous transactions whereby S.C. X S.R.L. “purchased” various services from these companies. The services were invoiced to the audited company, which treated them as deductible expenses in its accounts. On the basis of these documents, value added tax was also deducted, since it was considered, in accordance with the legal provisions, that by doing so company X S.R.L. had reduced its payment obligations to the state budget, in the form of corporation tax and value added tax.
From the spot checks carried out on the period audited, the tax inspection authorities identified entries in the analytical account 628.02 “Miscellaneous services”, expenses for works for the arrangement and maintenance of rented premises, rental services purchased from the affiliated supplier, unjustified, as they were not incurred for the purpose of carrying out the economic activity of the company audited.
The tax inspection authorities found that the taxpayer erroneously deducted from the corporate income tax the total amount of x lei, thus decreasing its payment obligation to the state budget, representing sponsorships to affiliated persons. Also deducted from the corporate income tax payable in the period 2021-2022 was the amount representing sponsorship to Association X, which was directed to affiliated or related persons.
In the field of value added tax, the tax inspection authorities did not accept the exercise of the right to deduct VAT in the amount of x lei, related to deductible expenses that were not intended for the activity carried out and not justified during the tax inspection, being established as non-deductible expenses.
The tax inspection authorities found that, by means of transfer procedures, the management of stocks of goods was diminished, i.e. the outflow from the goods account and the inflow into the consumables/spare parts account, while at the same time the expenses account was increased by the amount of x lei, in an unjustified manner.
Source: ANAF