The penalties for not declaring the taxes is an enormous risk for businesses. Although it is presented as a measure for the fair taxpayers, it can seriously hit the budgets of all companies. The main reason is the interpretable law, a fact recognized even by the authorities. Contexpert consultants advise you to be very careful in calculating tax obligations to avoid, if possible, to pay additional amounts in penalties and other accessories.
The penalties apply for any tax miscalculated. The penalties do not aim only actions like hiding tax base or transactions! They were first proposed earlier this year. Because the business environment had lots of observations, the project was withdrawn. The big issue is the interpretable legislation.
But the proposals were included in the draft of the Fiscal Procedure Code. Tax advisers have shown that the provisions may generate abuses and affect all taxpayers in good faith. Frequently the tax inspectors and the circulars issued by the central tax authorities have different interpretations of the same provisions. In the first version of the project the authorities admit that the penalities may occur because the tax provisions are obviously not clear! Contexpert considers that, in such circumstances, the very good knowledge of the law and the interpretations given by the tax authorities is the only way to reduce the risk of being penalized.
The level of penalties. When do they apply?
According to the law draft, the penalties will be imposed on any individuals, businesses or any other entity without legal personality.
The penalties are defined as tax liability representing the penalties for not declaring the taxes or declaring lower taxes and social contributions. Therefore, the penalties must be paid to the main undeclared tax liabilities established by tax inspectors in the tax decisions imposing .
The penalties will be: 10% of obligations if the amount determined by tax inspectors not exceed 25% for each tax debt declared for a fiscal period
25% of obligations, if the amount determined by the tax inspectors exceeds 25% of each tax liability declared
100% if the obligations are caused by acts of tax evasion.
The amount of the penalties will be reduced by 75% if the debt is extinguished by payment, compensation or if the payment is deferred.
Warning: In addition to these penalties, interests and penalties will also be paid to the amounts detected by inspectors. Thus, even if the error is caused by the lack of clarity of the Tax Code, taxpayers are to pay: 0.03% default interest per day (10.95% per year) and penalty of 0.02% per day (7, 3% per year) – the present level of 0.03 is proposed to lower to 0.02% – and penalties of 10% or 25%.
Attention! An imposing decision automatically means that taxes declared are lower than those calculated by fiscal authorities according to their interpretation.
The calculation of the risk
Although it is not about hiding the tax base or the transactions, the penalties are applied. The impact on businesses might be devastating. For example, if the fiscal authorities check the taxes at the end of the period of limitation, the total amount of penalties can reach 116.25%.
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