Fiscal inspection represents a process by which authorities check whether taxpayers comply with their tax obligations. In order to avoid legal problems and to efficiently manage a fiscal inspection, companies must be well prepared.

Location of the fiscal inspection

Regarding the location of the fiscal inspection, according to Emergency Ordinance no. 188/2022, fiscal inspections usually take place at the headquarters of the fiscal inspection authority, in contrast to previous practice, where they were conducted at the taxpayer’s premises.

However, it is possible for the inspection to take place at the taxpayer’s premises, but this can only occur at the initiative of the tax authority or upon the taxpayer’s substantiated request. In the case of a request from the taxpayer, it must be resolved within three days, and the absence of a response is considered tacit acceptance.

Documentation required for the fiscal inspection

Preparing the necessary documentation for the fiscal inspection is fundamental. Companies must carefully organize documents such as the accounting inventory, the balance sheets, the Single Control Register, the incorporation documents, documents regarding the cash register, those pertaining to receipts and payments, supporting documents for sponsorships, the origin of goods, the record of deductible expenses, and the submitted tax returns.

Managing the relationship with tax authorities

It is recommended that companies maintain a cooperative and professional attitude, responding clearly and promptly to the fiscal inspectors’ requests. Effective communication involves providing the requested documents in an organized and complete manner.

Furthermore, conflicts should be avoided by adhering to legal requirements and through a constructive approach to issues. For clarification of complex aspects, taxpayers may seek specialized assistance, such as from tax consultants.

Specific verification procedures

Through Emergency Ordinance 188/2022, specific verification procedures have been introduced, such as documentary inspections (desk inspections), which are conducted exclusively remotely. These inspections are carried out within the 5-year limitation period, and the periods subject to verification are determined based on identified tax risks.

The necessary documents can be transmitted electronically, and the taxpayer may provide additional explanations in writing. If the documents are not submitted within 30 days, the tax authority has the right to issue the assessment decision.

Taxpayer rights during the fiscal inspection

During the fiscal inspection, taxpayers have the right to be informed about the inspection and to request a postponement of its commencement (once, for justified reasons). They also have the right to be inspected only for the taxes within the limitation period and only once for each taxable period.

During the inspection, the company’s operations should be affected as little as possible, and taxpayers have the right to legal and tax assistance, as well as to constant updates regarding the findings.

Proper preparation for the fiscal inspection can reduce the risks of penalties and fines. Maintaining rigorous accounting records, collaborating with tax specialists, and proactively managing the relationship with fiscal inspectors are essential for a smooth fiscal inspection, and this is where Cabot Transfer Pricing comes in.

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