“I cannot forget the dystopic and relativistic piece of advice of the Red Queen to Alice in Wonderland: “Now, here, you see, it takes all the running you can do, to keep in the same place. If you want to get somewhere else, you must run at least twice as fast as that!” At times, I can’t help feeling like Alice. The unending modifications of the fiscal rules have since always favored the tax practicioners, except when such unsettlement made this profession utterly… impracticable!
I began my carreer in the most instrumental way possible, gaping for a headstart at a puzzling fiscal problem: I used to work in an accounting firm where I was delegated to assist some clients in the fiscal inspection. I simply started to pay attention at the tax inspector’s conversations, I listened them interpret the law and took notes on how they used to comment the submitted documents in the fact finding phase. I followed up this basic interest by becoming a tax lawyer, eager to deepen my knowledge of the relevant european legislation and jurisprudence.” – Luisiana Dobrinescu, attorney at law.
Our services in tax matters begin with day-to-day tax advice, continue with assistance and representation during the fiscal inspection, and complete with legal representation in front of the judicial courts (romanian and european) in fiscal trials.
Tax advice and fiscal procedures
On fiscal matters our services cover most of the relevant areas of interest: profit tax, non resident income taxation, VAT, excise and local taxes.
Our advice assures our client’s conformation with both romanian and european fiscal rules. Due to our constant implication in assistance with the fiscal inspections, we are always knowledgeable with the latest practice of the authorities and their particular view on certain detail matters. From both perspectives (the theoretical as well as the field view) we are in best position to analyse the exposure of our clients to potential fiscal risks, and therefore may suggest optimal structures of their activity.
Legal and fiscal structuring
- structuring in view of takeover of the participants or in view of their reorganisation (transfer of activity, transfer of assets, mergers, acquisitions, split-ups, share dealing)Structurare în vederea tranzacționării participațiilor sau a reorganizării (transfer de activitate, transfer de active, divizare, vânzarea participațiilor etc);
- VAT structures (optimization solutions for the effective VAT payments to the state budget – e.g. reverse taxation, limitation of the inpact of VAT offsets etc.);
- structuring with a view on the profit taxatoin, dividend distribution (permanent residence, branches and subsidiaries, independent contractors etc);
- optimal tax structuring applicable to personal incomes (labor contracts, civil conventions, independent activities and liberal professions etc);
- financing structures with a view on acquisition of companies or real estate in Romania.
Early assistance in fiscal inspection. Fiscal revisions. Identification of fiscal risks.
As a general rule, this kind of services turns out to be optimal and much appreciated by the clients, not only in terms of efficience, but also in terms of costs. Saving the client’s tax money by legal tax evasion is our main concern and the client’s ultimate benefice.
Tax reviews and tax audits are particularly useful for the investors as they may conclude on prospective risk assessment while taking over an already established business.
Assistance while on fiscal inspection
On fiscal matters, the taxman is the first judge of a contributor’s business, just as the fiscal authority is his most exigent “shareholder”. We offer to mediate, assist and represent our client throughout fiscal inspection, thus doing our best to prevent any procedural abuses, errors or deviations from the fairest possible treatment a contributor is entitled to receive.
Here are some of the most important issues we encountered during the fiscal inspections we attended to:
- carousel fraude, VAT scam suspicions (leasing companies);
- recalification of intelectual property revenue, as dependent work and salary payment (media corporations);
- VAT refunding in real estate and agriculture activities;
- real estate transactions peformed by natural persons in 2005-2010;
- asocieri în participațiune.
Being knowledgeable on both material taxation as well as fiscal procedures, we legally represent our clients in front of fiscal tribunals, romanian and european. Cunoscând atât dreptul fiscal material, cât și procedura fiscală, ne reprezentăm clienții în fața instanțelor de contencios administrativ fiscal, române și europene. Ionuț Dobrinescu and Dumitru Dobrev have, respectively, 15, and 13 years of experience as pleading lawyers and in cases they pleaded there created precedents which incurred important legislative modifications (such as the nominal fiscalization of the social contributions within the terms of the Fiscal Code, the extention from 1 to 5 years of the period when one may apply for the correction of the material errors in fiscal instruments).
We put to good use our experience as litigation in providing our clients with reliable preemptive legal and fiscal advice.
Assistance in the management of other administrative and fiscal procedures
- VAT refunding (UE and Romanian);
- tax restitution (including withholding taxes for dividend or capital incomes);
- correction of material errors from payment instruments and fiscal statements;
- debt reschedulling procedures;
- fiscal debt compensations;
- procedures for fiscal credit granting;
- tax exemption procedures (e.g. exemptions from local taxation for NGOs and industrial parks).
Given that the romanian fiscal legislation is under constant modification, our early warning workshops enable our clients to update their reporting systems by keeping them in line with the latest legal requirements. We either organize or participate to tax workshops, conferences or tax forums, as hosts or lectors where our clients are eligible for front seats.
Tax due diligence and tax reviews
We perform tax audits, due dilligenge and tax review on our clients, by special request of certain investors eager to acquire stakes in romanian companies or for some business owners who have a particular interest to have their fiscal risks thoroughly evaluated and receive early warning.