Government passes ‘fiscal amnesty’ order on tax facilities

The government passed on Wednesday an emergency order that cancels some penalties for overdue debts to the state budget, publicly discussed for some time under the appellation of ‘fiscal amnesty’.

The legislation refers to debtors who pay by March 31 2016 their debts outstanding by September 30 2015 managed by the National Tax Administration Agency (ANAF).

Taxpayers who pay 45.8 of the interests on overdue debts by June 30, 2016 get 54.2 percent of the interest cancelled on principal owed to the general consolidated budget on September 30, 2015. The facilities are applicable equally to individuals, companies, public bodies and other legal persons and to entities without legal personality. They must request it to the tax administration units. Besides settling by March 31, 2016 all the principal debt outstanding by September 30, 2015, they must meet several other conditions. All current principals up to the date of the request, with terms between October 1, 2015 and March 31, 2016, must be settled. All the tax forms must be submitted by the facility request date. Applications are accepted until June 30, 2016.

The government also mentioned that the new Tax Procedure Code applicable from January 1, 2016 lowers the interest on overdue debts from 0.03 percent per day to 0.02pct per day, and penalties for delayed payments are reduced from the current 0.02pct per day to 0.01pct per day.

The new act also provides some conditions for cancelling the delay penalties and the 54.2pct of interests. Taxpayers whose accounts are blocked can use these account to pay the relevant sums under this piece of legislation; the measure is temporary, between the date the act comes into force and June 30, 2016; it also applies to the accounts blocked after the coming into force.

Taxpayers in insolvency or reorganization procedures also benefit from these facilities; also, those who had payments rescheduled by September 30, if the new schedule ends by March 31, 2016, in which case the 54.2pct of the debt paid in the rescheduled installments are refunded as stipulated in the Tax Procedure Code.

The procedure for the application of the Government Emergency Order must be approved within 30 days from its coming into force.

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