ANAF Tax Inspection in Romania: Your Rights, Preparation and Appeal

How a tax inspection begins

A tax inspection is the review carried out by ANAF, the Romanian tax authority, of how a company or individual calculated, declared and paid taxes and contributions. It usually starts with a tax inspection notice sent before the inspection begins, stating the period under review, the taxes concerned and the start date.

In some cases an inspection may start without prior notice, for example for urgent checks or unannounced controls. If you have a justified reason, you can ask for the start date to be postponed under the conditions set out in the Romanian Fiscal Procedure Code.

Taxpayer rights during the inspection

The Fiscal Procedure Code gives taxpayers concrete rights that are worth knowing from the moment you receive the notice:

• the right to be informed about the inspection and the inspectors' findings;
• the right to give explanations and submit documents supporting your position;
• the right to be assisted by a lawyer, tax adviser or chartered accountant;
• the right to take part in the final discussion and give your view on the findings within the legal time limit;
• the right to receive the inspection report and the acts issued on its basis;
• the right to challenge tax acts you disagree with.

How to prepare

Preparation makes a real difference. Review the documents for the period under inspection with your accountant in advance: invoices, contracts, bank statements, tax returns, ledgers and evidence that services or goods were actually supplied. In practice, many adjustments are made because an expense cannot be supported with sufficient documents.

Appoint a contact person to communicate with the inspectors and keep a record of the documents handed over, ideally through a signed handover record or a covering letter with a registration number. Reply in writing to important requests and avoid improvised explanations on matters you have not checked.

Final discussion, report and tax assessment

At the end of the inspection, the team presents its findings and the proposed tax consequences. This is when you can submit a written position with arguments and documents. Many issues can be clarified at this stage, before the acts are issued.

The outcome is recorded in the tax inspection report, and on that basis a tax assessment decision for any additional liabilities is issued where applicable. The tax assessment is the act that requires you to pay and it can be enforced. Read both documents carefully and compare the findings with the documents you provided.

Common mistakes during an inspection

Many problems arise not from fraud but from incomplete documentation or poor communication with the inspectors. Common mistakes include handing over documents without keeping any record, giving verbal explanations that are never confirmed in writing, and failing to submit a position at the final discussion.

Some taxpayers also sign documents without reading them or assume there is nothing left to do once the inspection ends. In reality, the arguments and documents presented during the inspection matter a great deal at the appeal stage, and a consistent position from the start is an advantage. If an issue is legally debatable, it is useful to raise it in writing while the inspection is still under way.

Appealing the tax assessment

If you disagree with the tax assessment, you can file an administrative appeal. Under the Fiscal Procedure Code (Law no. 207/2015), the appeal must be filed within 45 days from the notification of the tax act, with the tax authority that issued it. It must be in writing, set out the facts and legal grounds, and include the supporting evidence.

Note that filing an appeal does not, as a rule, suspend enforcement of the act. To avoid enforcement measures pending a decision, you may ask the administrative court to suspend enforcement under the conditions provided by law. If the appeal is rejected, the decision can be challenged in court.

The information in this article is general. Every inspection is different, and the right strategy can only be set after an individual review of the acts and accounting records.

This article is for information only and does not constitute legal advice. For an analysis of your specific situation, contact a lawyer.