Case law
SAC on international requests for cooperation and time limits for tax assessment
Effective 1 January 2014, pending international requests for cooperation extend the period for which a tax may be assessed by the tax administrator. The SAC has now dealt with the interpretation of the effect of this regulation in terms of time: Do…
An end to statutory representative and proxy-holder acting jointly
A proxy-holder acting jointly with a statutory representative: is this what is recorded in your company’s entry in the Commercial Register? If so, you have a problem, as indicated by a recent Supreme Court decision, responding to the inconsistent…
SAC confirms ‘tax inspections beyond regional borders’
Increasingly often, the financial administration has been concentrating related tax inspections into the hands of a single tax administrator. This concept, referred to as ‘delegation’, considerably simplifies the work of the tax authorities. For…
Technical improvements and advertising services once again on the SAC’s agenda
The Supreme Administrative Court (SAC) in its recent judgement dealt yet again with the issue of repairs vs technical improvements and the application of related depreciation by a tax administrator during a tax inspection. The court also opined on…
Proving inter-company services and determining transfer prices
Almost all multinational groups of companies ensure part of their activities on a central basis and re-invoice shared services to group companies. This often involves significant amounts. It is therefore not surprising that tax administrators have…
Re-invoicing excluding VAT? Only when no ancillary supply is involved
The Supreme Administrative Court (SAC) recently agreed with the tax administrator that the re-invoicing of accident insurance is a supply ancillary to the lease of a motor vehicle and, consequently, should be liable to the same VAT regime as the…
SAC: Tax deductibility of expenses requires providing evidence about real supplier
In its two recent decisions, the Supreme Administrative Court (SAC) again concluded that legal entities claiming tax deductible expenses must document and prove circumstances under which these expenses were incurred, as well as provide information…
CJEU: Leases with option to purchase considered delivery of goods?
There are various forms of leases from a tax perspective. For VAT, the crucial question is whether, after the end of the lease term, the ownership title to a leased asset is automatically transferred from the lessor to the lessee. If this is the…
SAC: Tax administrator’s authority to register taxpayers for VAT subject to time…
In its decision 10 Afs 329/2016-55, the Supreme Administrative Court (SAC) confirmed that the tax administrator’s authority to register persons liable to tax as VAT payers by virtue of office is not time-unlimited, similarly as any other…
Monitoring employees’ emails
The case involving a 38-year old engineer from Bucharest continues: the dispute between a Romanian employee who despite a ban used his employer’s equipment for private purposes during his working hours and a private company that monitored his…
Privacy for thieves
The Constitutional Court finally closed a lengthy dispute over the legality of publishing a thief’s photograph on a social network by the victim of the theft. However, the court did not deal with the details of the case, stating only that the…
Independent groups of persons and the financial sector
The end of September brought two ground-breaking rulings issued by the Court of Justice of the European Union (CJEU) that will significantly affect not only the financial sector. The CJEU judges finally provided their long-awaited answer to the…