EY: Romania's new Fiscal Procedure Code will have mixed effects

The changes of the new Fiscal Procedure Code will have both positive and negative effects on taxpayers starting January 1, according to EY Romania. Tax audits will have to cease if they take more than double their legal duration. In the case of big contributors, a tax audit will not exceed one year and six months, with the possibility of suspending the inspection only for a period of maximum six months. The new Fiscal Procedure Code also introduces the penalty for the failure to declare tax. However, there is no difference made between concealing and understatement. This is one of the negative effects on taxpayers. Also, the deadline for the state to pay back VAT has been increased from 45 days to 90 days, in case of a control, which can be further extended by six months, in case further checks and information are needed. The limitation period for determining fiscal debt has also been extended from five years to five and a half years. editor@romania-insider.com