The fiscal year-end represents a period of great importance for any company. It is the moment when the accounting close is finalized, the financial statements are prepared, and the last reports are submitted to the tax authorities. At the same time, it is the ideal period to identify and manage potential tax risks that may arise in the event of an inspection by ANAF. In an increasingly complex economic environment, where legislation changes frequently, a proactive and well-structured approach can turn a tax audit from a source of stress into a simple formality.

To begin with, companies should carry out a detailed analysis of their internal tax compliance. This involves verifying all returns submitted during the year (VAT returns, corporate income tax, social contributions, and payroll taxes) and comparing them with the accounting records. Any identified differences must be analysed and, if necessary, corrected by filing amended returns. At the same time, increased attention is recommended for unusual transactions, such as those with affiliated entities, partners from other EU member states, or from outside the European Union. These often attract the attention of tax inspectors, as they are considered areas with increased non-compliance risk.

Documentation is a fundamental pillar in defending the company’s tax position. Even in situations where accounting records are correct, the lack of supporting documents can lead to significant tax adjustments. Therefore, it is essential that all contracts, invoices, delivery notes, minutes, transport documents, and other relevant records are properly archived. Implementing a digital archiving system not only reduces the risks related to document loss but also increases efficiency during an inspection. For groups of companies, the transfer pricing file must be updated annually, as it is a priority verification area for the tax authorities.

Another important direction is ensuring consistency between accounting and tax records. Before closing the year, it is advisable to review income and expense accounts, reconcile the accounting balance with the tax returns, and confirm balances with business partners. Any unjustified difference may raise questions during an audit. In addition, companies should ensure that the tax treatment applied to each transaction is correct, especially in the case of expenses for management, consultancy, or marketing services, which must be supported by concrete evidence of the actual provision of the services.

Preparation for a tax inspection should be a continuous process, integrated into the company’s operations. A well-organized company establishes clear procedures in advance for managing such situations, ensuring that there is a dedicated team for the relationship with the tax authorities and that all documents can be accessed quickly and completely. Efficient coordination between departments, open communication, and compliance with deadlines contribute to a smooth inspection process. Essentially, transparency, promptness, and internal order are the elements that turn a tax audit from a stress factor into a manageable and predictable process.

At the end of each year, an internal checklist can serve as a practical tool for verifying the degree of tax compliance. It should include the review of all submitted returns, reconciliation between accounting and tax records, updating the transfer pricing file, complete archiving of supporting documents, and verification of the tax treatment applied to transactions. At the same time, companies can use this moment to analyse whether they are eligible for tax incentives or exemptions provided by the legislation in force, such as those for research and development activities or stock option plans.

Practical recommendations for reducing tax risks

To reduce risks and manage tax inspections effectively, companies must adopt a strategic and preventive approach. Periodic collaboration with tax consultants or independent auditors offers an objective perspective on compliance and allows timely correction of potential errors. At the same time, the digitalisation of accounting and tax processes simplifies reporting, minimizes errors, and ensures quick access to documents in the event of an audit.

Continuous training of the financial team is equally important, given the frequent changes in tax legislation. A well-prepared team can anticipate risks and react correctly in the face of any inspection. Also, open and transparent communication with the tax authorities contributes to a fast and balanced inspection process.

In conclusion, tax compliance does not only mean fulfilling legal obligations, but also building a solid internal system based on organisation, digitalisation, and responsibility. The end of the year is the ideal moment to review these processes and strengthen a healthy tax culture.