Tax controls will be more numerous, more efficient, faster and targeted at certain risk areas thanks to the digitalization of tax administration and the introduction of almost real-time tax and tax reporting. Documentary checks or “desk audits” will be more frequent, considering that they must reach the target of 60% of total tax checks, according to the National Recovery and Resilience Plan (PNRR). This is a fundamental reform of the way tax inspection is carried out, and the implications for taxpayers will be significant. Will these changes bring increased vulnerability or more advantages for companies? These aspects were analyzed in the 19th edition of the PwC Romania Annual Tax Conference during a debate in which the arguments for and once morest were presented regarding the effects of these changes on taxpayers.
PwC Romania Annual Tax ConferencePhoto: PwC Romania
Dan Dascălu, Partner D&B David and Baias: Our debate summarized the current state of fiscal control and the future impact of its recent reform, on procedural and substantive fiscal dimensions (VAT, transfer pricing and direct taxes). This is because the documentary verification – a “blitz” form of fiscal control with few guarantees and certainties for taxpayers – will be generalized. The long-awaited transparency of the risk analysis will not take place immediately, and the realization of its results for the taxpayer is uncertain.
Fiscal law issues will not be much different from today’s, fiscal control will be more efficient and transparent, but the care for documentation remains, so that there are no discrepancies between accounting and declarations, especially in the context of the expansion of digitalization. Transparency and access to information means that the new type of control will be more targeted at risk areas, but also likely to identify many more tax issues. In the withholding tax area, there have been a series of reclassifications, and in the profit tax, fiscal facilities are targeted, being expected to be extended. The economic substance of the transactions, the final beneficiary and the tax residence certificate are topics to consider in the future as well.
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Article supported by PwC Romania