A third of Romanian companies surveyed by PwC were controlled by tax inspectors in 2017

A third (34%) of the 169 Romanian companies that participated in a survey conducted by financial consultancy firm PwC said they were controlled by tax inspectors in 2017. Most of the inspections (37%) took under 1-3 months and in most cases (57%) the tax inspectors determined extra taxes that the companies had to pay of up to RON 100,000 (EUR 21,500). The tax inspectors mainly focused on the profit taxes reported by the companies, in 46% of the cases, and the way the companies registered the VAT, in 38% of the cases. The inspectors checked how the companies deducted their service expenses, protocol expenses, sponsorships. They also looked at differences between reported inventories and physical stocks and controlled the transfer prices. Most companies that answered the survey (62%) said they chose not to challenge the extra tax obligations. However, more than half of those that filed appeals had them solved favorably or partially favorably. editor@romania-insider.com