Coronavirus update no. 22/2020 - Procedure for cancellation of ancillary tax obligations

In the Official Gazette no. 635 from 20 July 2020, was published the Order of the Ministry of Public Finance no. 2100/2020 for approving the procedure for cancellation of ancillary tax obligations.

The possibility of cancelling the accessories was introduced by GEO 69/2020, about which we informed you through the Coronavirus update no. 13/2020. Considering that the deadline to benefit from this facility is approaching, we remind you the conditions to benefit from it and we detail the related procedure.

 

General considerations

 

For all outstanding principal tax obligations due on March 31^st, 2020, belonging to individuals or legal entities, interest, penalties and all related accessories shall be cancelled if these principal obligations are paid in full by the date the cancellation request is submitted, but not later than December 15, 2020.

 

In order to benefit from this cancellation, the following cumulative conditions should be met:

• all principal amounts outstanding at March 31^st, 2020 shall be settled by any method (payment, offsetting, etc.) by the date the cancellation of the accessories is requested;
• all principal amounts and all the related interest and penalties, due between April 1^st, 2020 and the date of the cancellation request shall be settled by any method;
• by the date the cancellation is requested, the taxpayer shall submit all tax returns and statements, as per the tax law;
• the accessories cancellation request shall be submitted after the above conditions have been met, but not later than December 15, 2020.

   

  Interest and penalties resulting from tax inspections which are in progress on May 14, 2020 may be cancelled if two conditions are met together:

• all additional principal tax obligations resulting after the tax audit will be paid within the legal deadline; (the 5th or 20th of the month following the communication of the taxation decision);
• the cancellation request is submitted within 90 days from the date the tax audit report was received by the taxpayer.

 

In case of submitting amending statements rectifying principal obligations due before 31 March 2020, the accessories related to the resulting differences may be cancelled.

The cancellation of the interest and penalties may be applied under the same conditions to the taxes due on March 31^st, 2020 to the local budgets (i.e local taxes), but only if this is decided by the local council of the respective city or town.

 

Notification of intention to benefit from cancellation

The authorities offer the taxpayer the possibility to notify the intention to benefit from the provisions of GEO 69/2020, prior to submitting the application for cancellation of accessories.

Following the submission of the notification, the tax authority makes an analysis of the taxpayer's situation and informs it about the value of the accessories that may be cancelled as well as the value of the outstanding obligations that must be paid in order to benefit from the cancellation of the accessories.

Due to the large number of possible situations as well as possible errors that may be found in tax authority’s records, we recommend to all clients wishing to apply these provisions to submit initially this notification of the intention to benefit from the cancellation of the ancillary obligations.

 

Request for cancellation of accessories

After fulfilling all the mandatory conditions to benefit from the cancellation of the accessories as well as adjusting the eventual discrepancies in tax authority’s records, the Request for cancellation of the accessories should be submitted no later than December 15, 2020.

The Request must be submitted also by the taxpayers who initially submitted the Notification of intention to benefit from cancellation of the accessories.

 

 

 

In order to have an efficient communication, we established a direct link with the related department. For the subject of the current Update, the requests for tax consultancy may be sent to [email protected] with a brief description of the query. One of our consultants will answer or contact you shortly.

 

 

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