Challenging tax assessment decisions or other tax administrative acts in Romania

Over time, we have seen that tax authorities frequently implement unexpected and sometimes controversial measures, making the contestation of tax assessment decisions or other administrative fiscal acts essential for protecting taxpayers’ rights.

Tax assessment decisions and other administrative fiscal acts can significantly impact the economic activities of any entity. An unlawful assessment decision can lead to additional tax liabilities for taxpayers and inequitable treatment that affects entire economic sectors.

What Is a Tax Assessment Decision?

In the broader category of administrative acts, a tax administrative act is issued by local or central tax authorities in the exercise of their duties for administering taxes, duties, and social contributions to establish an individual situation and to produce legal effects on the person to whom it is addressed.

A tax assessment decision is one such act, through which the competent tax authorities establish or modify the taxable base, as outlined in Article 95(2) of the Tax Procedure Code. Typically, a tax assessment decision is issued following a documentary verification, a tax audit, or a review of an individual’s fiscal situation.

Alongside tax assessment decisions, other fiscal administrative acts include debt instruments or enforcement titles issued by tax authorities.

The Importance of Contesting an Unlawful Tax Assessment Decision in Romania

If a tax assessment decision or another administrative fiscal act contains errors, does not match the taxpayer’s declarations, or does not reflect the actual situation of the taxable goods, the affected taxpayer has the right to challenge the act, first through administrative means and, if necessary, in court.

The legal avenue for contesting a tax assessment decision or any other administrative fiscal act is, initially, filing an administrative appeal. The appeal is a specific procedure for administrative tax litigation. According to Article 269 of the Tax Procedure Code, the appeal must include the appellant’s identification details, the object of the appeal, the factual and legal reasons on which it is based, the supporting evidence, and the appellant’s or their representative’s signature. The appeal’s object consists of the amounts and measures established and recorded by the tax authority in the challenged act, as well as the amounts not determined by the tax authority but which should have been determined under the law.

From a procedural standpoint, the appeal must be submitted within 45 days from the communication of the administrative fiscal act, to the authority that issued the act. Depending on the issuing body, the appeal will be resolved either by the specialized resolution department within the Ministry of Public Finance or by the issuing authority itself.

Upon reviewing the appeal, the resolution body will issue a binding decision either to fully or partially annul the challenged act or to reject the appeal. If the appeal is rejected, taxpayers still have the option to challenge the rejection decision in court.

On the other hand, if taxpayers fail to submit an appeal within the legal timeframe, they forfeit the right to challenge the act later, and the administrative fiscal act in question becomes final.

Why Contesting Tax Authority Decisions Is Essential in Romania

Our team of lawyers in Romania actively protects taxpayers, including by contesting administrative fiscal acts, and we strongly encourage taxpayers who feel harmed by such acts to take action.

Our experience across various economic sectors affected by disproportionate and unpredictable fiscal measures has shown us that administrative interpretations can profoundly impact the normal functioning of economic operators, beyond just the fiscal sphere, disrupting entire industries. We have successfully represented clients in the pharmaceutical sector, saving hundreds of pharmacies from bankruptcy due to the abusive interpretation of regulations on calculating compensated medicine prices. We have contested tax assessment decisions related to the illegally applied VAT rate on coffee for clients in the HoReCa sector, and we have opposed disproportionate penalties under the RO e-Transport system, imposed under politically justified but practically flawed objectives.

Recent fiscal practice highlights that many tax measures are introduced without thorough sector-wide impact analysis, emphasizing the necessity of contesting tax assessment decisions and fiscal administrative acts that implement these measures.

In such contexts, challenging tax authority decisions is not only a right but a necessity to ensure a fair fiscal environment, allowing businesses to operate without bearing the burden of erroneous tax assessments.

How Blaj Law Can Assist You

The Blaj Law team provides complete assistance in contesting tax assessment decisions and other administrative fiscal acts. Our collaboration includes:

• Detailed analysis of documents to identify elements that support an appeal.
• Interpretation of the legal norms underlying the issuance of the tax decision or administrative act.
• Development of a personalized legal strategy.
• Representation before authorities in the appeal procedure.
• Monitoring outcomes and pursuing legal action if the decision is unfavorable.

If you or your business is facing an unjust tax assessment decision or an administrative fiscal act that negatively impacts your financial stability, do not hesitate to seek legal support. Our team of tax litigation experts at Blaj Law is prepared to defend your rights and ensure the best possible outcome in your case.